Mumbai, June 6 -- India Ratings said that the ratings are supported by the significant improvement in ITL's revenue during FY22-FY25, backed by strong demand for transformers and increased realisations.

Additionally, the ratings factor in the company's healthy EBITDA margins, comfortable credit metrics and promoters' more than three decades of experience in the transformer industry. However, the ratings are constrained by volatility in raw material prices and the working capital-intensive nature of operations.

The agency further said that a a substantial improvement in the scale of operations, along with maintaining the liquidity position and the credit metrics, all on a sustained basis, could be positive for the ratings.

However, any ...