CARE Rating Agency has assigned CARE A-; Positive [Single A Minus: Out look: Positive] rating to long term bank facilities for the amount of Rs 38.12 crore, CARE A-; Positive/CARE A2+[Sing A Minus; Outlook: Positive / A Two Plus] rating to long term / short term bank facilities for the amount of Rs 136.50 crore and CARE A2+ (A Two Plus) rating to the short term bank facilitates for the amount of Rs 77 crore of Gravita India Limited. The ratings assigned to the bank facilities of Gravita India Limited (GIL) continue to favourably factor in its established track record of operations in lead recycling and smelting industry with wide geographical presence, experienced and professional management and its operational synergy with subsidiaries at multiple locations along with benefit derived from license for import of lead acid battery scrap. The ratings also take cognizance of moderate capital structure, moderate debt coverage indicators and liquidity position and reputed customer base. The ratings also factor in improvement in total operating income, profitability and debt coverage indicators during FY17. The ratings, however, continue to remain constrained on account of its working capital -intensive nature of operations, customer concentration risk and limited pricing flexibility due to low value addition with susceptibility to fluctuation in international lead prices and weak entry barriers. The ratings are further constrained on account of risk associated with execution of ongoing project, foreign exchange fluctuation risk, regulatory risk pertaining to duty structure and compliance with environmental norms and inherent cyclicality associated with the end-user industry. GIL's ability to complete the project within the envisaged time and cost parameters, increase its scale of operations by generating envisaged returns from its enhanced capacity along -with improvement in profitability in the light of volatile lead prices, efficient management of its working capital and continuous compliance with prescribed environmental norms would be the key rating sensitivities.