Eveready Industries India Ltd (EIIL) has received an upgrade from India Ratings & Research (Ind-Ra), reflecting an improvement of the company’s financial profile and liquidity position in the first half of the year.

The rating for EIIL’s term loan now stands at ‘BBB-’ with a positive bias, upgraded from ‘BB+’ issued in August. The issuer said the improvement in the financial profile is continuing in the second half as well, backed by substantial improvement in profitability.

The positive outlook reflects Ind-Ra’s expectations of a further improvement in the business profile and the liquidity position over FY2021-22, aided by the sustained performance of the batteries and flashlight segments and the likely improvement in the lighting and appliances.

Moreover, it factors in the possible resolution of the contingent liability issue and board representation by the Burman family.