Explore Business Standard
Crisil Report
Non-banking finance companies' (NBFCs) reliance on bank borrowings is likely to rise in FY27 due to lower interest rates, a rating agency said on Wednesday. The share of bank borrowings, which rose to 43 per cent on the back of higher activity in the second half of the recently concluded FY26, will inch up further to up to 45 per cent by the end of the ongoing fiscal, Crisil Ratings said. It attributed the shift in preference to lower interest rates in the bank lending market, which is likely to lead to a tapering in the debt capital market issuances. "While bank lending rates continued to decline throughout last fiscal, bond yields, after declining in the first half, inched up in the second half and remain elevated," the agency said. Additionally, the share of external commercial borrowing (ECB) issuances will also be muted in the near term, owing to geopolitical uncertainties and the resultant exchange rate volatility, it added. In such a scenario, securitisation is expected to
India's annual domestic output of urea and complex fertilisers is likely to decline by 10-15 per cent due to supply chain disruptions caused by the ongoing conflict in the Middle East, a Crisil Ratings report said on Thursday. "The ongoing issues in the Middle East could disrupt the fertiliser supply chain at a crucial time for the kharif season. Disruption in LNG and ammonia supplies continuing for about three months could cut domestic urea and complex fertiliser production by 10-15 per cent," Crisil Ratings Director Anand Kulkarni said. However, he said the impact on production will be cushioned to some extent by the recent government directive allocating 70 per cent of gas to urea manufacturers. He added that the fertiliser inventory of around three months, along with expected imports from alternative sources, will mitigate the risk of immediate supply shortages. Further, Crisil Ratings said the increase in prices of raw materials and imported fertilisers is likely to increase .
Domestic credit ratings agency Crisil on Wednesday said the unrest in Iran has not had any impact on Indian companies so far. However, if the tensions persist or escalate, leading to rise in crude prices, companies in oil refining, aviation and crude-linked sectors like specialty chemicals, paints, petrochemicals and synthetic textiles may be impacted, it said. "The ongoing unrest in Iran has not had any significant impact on India Inc's global trade, or the credit profiles of domestic corporates thus far," it said. Pointing out that Iran accounts for over 4 per cent of the global crude oil supply, the agency said any escalation that disrupts its production could spike prices and the same should be watched closely by a country like India that is dependent on imported crude. "While India's direct dependence on Iran for crude-linked products is low, any sharp rise in crude oil prices will have a cascading impact on sectors such as oil refining, aviation, specialty chemicals, paints,
Educational institutions' are likely to witness 11-13 per cent growth in total income in the current fiscal year and the next, driven by rising enrolments and fee hikes across segments as schools and colleges capitalise on steady demand and improving realisations, a report said on Monday. Operating margins will be steady at 27-28 per cent as these institutions will incur higher staff salaries and other related costs, Crisil Ratings said in a report. With rising enrolments, the institutions will also incur capital expenditure to create additional capacity and improve infrastructure, the report said, adding that credit profiles will, however, remain stable as strong cash flows will limit reliance on external debt. "Overall income is expected to log healthy double-digit (11-13 per cent) growth over the next few fiscal years, mainly supported by fee revisions, along with growth in enrolments, albeit at a modest rate. "Fee escalations are primarily driven by higher inflation, especially
A cohesive national and state-level regulatory framework that gives investors long-term confidence is essential for the country to meet its non-fossil goals, according to a CRISIL expert. The government has an ambitious target of having 500 GW non-fossil fuel-based power generation capacity by 2030. Non-fossil fuel capacities include sources like solar, wind, biomass, waste-to-energy, hydro projects etc. "Achieving India's 500 GW non-fossil target will require a cohesive national and state-level regulatory framework that gives investors long-term confidence," a statement issued by FICCI said, quoting Ashish Mittal, Director, Energy & Commodities, CRISIL. Cap-and-floor mechanisms, viability gap funding and storage-as-a-service models will be critical to de-risk investments and unlock private capital at the scale India now needs, he said at FICCI's India Power and Energy Storage Conference on Wednesday. On energy storage, Ashok Sharma, the Deputy Managing Director, State Bank of .
Capital outlay of states is expected to grow from four per cent to six per cent in the current financial year touching approximately Rs 7.5 lakh crore, Crisil Ratings said in its report on Friday. This would be lower than seven per cent in the last financial year and well below the decadal average of 11 per cent as rising revenue deficits are limiting financial flexibility, the report said. Water supply and sanitation, including housing and urban development and irrigation, will continue to be the main drivers of the capital expenditure, the report said. The top 18 states will account for 94 per cent of capital outlay of the states. According to the report, rising revenue deficit of the states are due to slow pace of growth due to moderation in GST rates post rationalisation, slowing devolution from the Centre and lower nominal GDP growth driven by easing inflation. On the other hand, revenue expenditure is set to grow sharply by seven per cent to nine per cent, driven by committe