CRISIL's ratings on Tecnimont ICB Pvt Ltd's (Tecnimont ICB's) bank facilities continue to reflect Tecnimont ICB's strong business linkages with its parent, Tecnimont SpA of Italy, in the engineering, procurement, and construction (EPC) business, established position as an offshore provider of engineering designs to the global operations of Tecnimont SpA, and conservative capital structure. These rating strengths are partially offset by Tecnimont ICB's susceptibility to intense competition and cyclicality in the EPC industry, its working-capital-intensive operations, and to labour intensity in the electrical and instrumentation business.

For arriving at the ratings, CRISIL has consolidated the business and financial risk profiles of Tecnimont ICB and Tecnimont ICB's subsidiaries, Engineering and Designs Tecnimont ICB Pvt Ltd (EDTICB; wholly owned subsidiary) and Tecnimont ICB Qatar WLL (TICB Qatar – 49 per cent stake with management control). This is because the three entities have strong financial and operational linkages. The entities are together referred to as Tecnimont ICB herein.

CRISIL believes that Tecnimont ICB will continue to receive strong business support from its Tecnimont SpA. The outlook may be revised to "˜Positive' if Tecnimont ICB continues to increase its revenue diversity and cash accruals, resulting in significant increase in its net worth. Conversely, the outlook may be revised to "˜Negative' if there is dilution in Tecnimont ICB's business linkages with its parent, or significant delays in execution of projects, leading to less-than-expected cash accruals.