CARE Ratings said that the revision in the rating assigned to bank facilities of Elpro International Limited (EIL) factors in improvement in occupancy level in retail mall and consequent positive impact on financial performance in the ensuing quarters and sustained near full occupancy in business park. The rating further notes the healthy investment portfolio of the company.

The rating continues to derive strength from established promoter group with presence across diverse business verticals, favourable location of properties, diversified tenant profile comprising reputed tenants/brands, comfortable capital structure and debt protection metrices and presence of escrow mechanism and debt service reserve account (DSRA).

However, the rating is constrained by risk of non-renewal of lease agreements and inherent risk associated with cyclical real estate industry.

Pune-based Elpro International is engaged in the manufacturing and distribution of power distribution equipment such as Surge Arresters and Disconnecting Switches (Isolators), with manufacturing set-up in Pimpri-Chinchwad area, near Pune. Over the past years, the company has divested its Isolator set-up in Hyderabad to Siemens Ltd and has scaled down its operations in Pune and has ventured into real estate development of the 40 acres of land in Pimpri-Chinchwad area owned by it, in phases.

The scrip had lost 1.51% to end at Rs 80.04 on the BSE on Friday.