The agency has also upgraded its rating on the fund-based and non-fund-based working capital limits of the company to 'IND A-/Stable/IND A2+'.

India Rating said that the upgrade reflects an improvement in the company's consolidated operating performance and credit metrics over Q4 FY22-H1 FY23 and the agency's expectation of the same to continue over H2 FY23.

The rating agency further said that an improvement in the consolidated profitability while maintaining the credit metrics, both on a combined and sustained basis, could lead to a positive rating action.

However, a decline in the consolidated profitability margins, leading to the total outside liabilities (TOL)/EBITDA remaining above 3.0x on a sustained basis, could lead to a negative rating action.

Pricol is engaged in the business of manufacturing and selling of instrument clusters and other allied automobile components to original equipment manufacturers (OEM) and replacement markets.

The company's consolidated net profit zoomed 223.99% to Rs 47.53 crore in the quarter ended September 2022 as against Rs 14.67 crore during the previous quarter ended September 2021. Sales rose 26.64% YoY to Rs 501 crore in Q2 FY23.

The scrip was down 0.71% to end at Rs 174.60 on Friday, 18 November 2022.