Page 5 - Crisil Ratings

CRISIL Ratings places Vedanta under watch with negative implications

The agency mentioned that the ratings might be downgraded if Vedanta cannot reduce its end-of-year financial leverage to below 2.7 times through the asset monetisation route

Domestic demand, exports revival to aid readymade garment players' revenue

Readymade garment manufacturers are likely to post an 8-10 per cent increase in revenue on the back of growing domestic demand and revival of exports, a report said on Friday. Domestic demand and revival in exports have been driven by lower cotton prices and easing supply-chain disruptions, the report by Crisil Ratings said. Volume growth will be higher at 6-8 per cent this fiscal, compared with 3-5 per cent last fiscal, it said. Despite this, revenue will grow slower than the 14 per cent in the last fiscal as realisations moderate due to easing raw material prices. The Crisil Ratings report further said prices of cotton and man-made fibre are expected to fall 15-17 per cent and 8-10 per cent, respectively, this fiscal. Consequently, growth in realisations will be a meagre 1-3 per cent this fiscal, as against 10 per cent last year, the rating agency said. "Readymade garment manufacturer makers will rely on domestic consumption (75 per cent of the overall demand), which is expecte

CRISIL upgrades Suzlon Energy ratings to BBB+ with positive outlook

Renewable solutions provider Suzlon Energy on Wednesday said Crisil upgraded its ratings by two notches to BBB+/A2 with a positive outlook. "Suzlon Group today announced that Crisil has upgraded the ratings of Suzlon Energy Ltd to CRISIL BBB+/A2 from CRISIL BBB-/A3' with a Positive Outlook for long-term and short-term facilities, reflecting the company's strengthened financial position, operational excellence and favourable sectoral tailwinds," a company statement said. According to the statement, the rating upgrade is a result of Suzlon's successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement (QIP) of approximately Rs 2,000 crore. The reduction in fund-based borrowings, steady cash flows from the operations and maintenance (O&M) services business, and improved business profile in the wind turbine segment have contributed to this upgrade. Suzlon Group Chief Financial Officer Himanshu Mody said, "This upgrade is a .

ARPU of Indian telcos to rise 8-10% to Rs 190 this year, says CRISIL

CRISIL added that the operating profits of these companies could record a 15 to 17 per cent rise to Rs 1.2 trillion this year from Rs 1.04 trillion in 2021-22

Operating profits of OMCs may reach Rs 1 trillion in FY24: CRISIL

Profits may rebound by 3-times from FY23's Rs. 33,000 crore as softer crude improves credit metrics

OMC profits could reach Rs 1 trillion this financial year: CRISIL Ratings

This would be a significant rebound compared to the Rs 60,000 crore recorded between financial years 2017 and 2022 and the previous financial year low of Rs 33,000 crore

India's natural gas ambitions tripping even though imported LNG prices fall

The slowdown could impact India's net zero targets

Handicraft exports likely to fall 6-8% in FY24 amid global market slump

Indian handicraft exports may witness a 6-8 per cent decline this fiscal to USD 3.3 billion, mainly due to a spending slowdown in global markets, a report said on Monday. A slowdown in discretionary spending in key global markets will drag the largely export-oriented Indian handicraft industry by 6-8 per cent lower to USD 3.3 billion this fiscal, after a decline of 20 per cent in FY23, Crisil Ratings said in a report. "Amid the slowdown in key export markets, Indian handicraft exporters will face increased competition from their Chinese counterparts post easing of Covid-19 curbs in China. Handicraft exporters will rely on lower pricing and extended credit to counter subdued demand, which may pull down operating profitability by 200-250 basis points to 12 per cent," Crisil Ratings Director Rahul Guha said. The industry derives almost 60 per cent of its sales from the US and EU, which are battling high inflation and recession fears. Together, these two regions make up a market of mor

Two-wheeler OEMs' revenue likely to rise 13-14% this fiscal: Crisil Ratings

Two-wheeler OEMs' revenue is likely to rise 13-14 per cent this fiscal despite modest volume growth, driven by increasing preference for executive and premium motorcycles that yield higher realisations, Crisil Ratings said on Tuesday. The two-wheeler original equipment makers (OEMs) topline had grown 19-20 per cent last fiscal, as per the credit ratings agency. Motorcycles above 110 cc fall under the executive and premium segment. Overall, two-wheeler sale volumes are expected to rise around 8 per cent year-on-year this fiscal to around 20.6 million units, driven by around 11 per cent growth in the domestic markets (81 per cent of overall volumes in fiscal 2023), it said. Exports, on the other hand, will remain impacted for the second year in a row due to economic challenges and continuing high inflation in key markets of Africa, Latin America, Bangladesh and Sri Lanka, Crisil Ratings said. While this would be the third straight year of volume growth (in two-wheelers), it would st

India's vulnerability to global shocks to reduce in FY24: CRISIL

Domestic banking insulated from global financial turmoil and better positioned to tackle rising interest rates

Tata Capital to LIC Housing finance: Companies to raise funds from markets

Punjab & Sind Bank will raise funds through the sale of certificates of deposit maturing in three months

Crisil Ratings upgrades outlook on Jindal Stainless to 'positive'

Jindal Stainless Ltd (JSL) on Thursday said Crisil Ratings has revised its outlook on the stainless steelmaker's long-term bank facilities and debt programme to 'AA' with a positive outlook. The rating agency has revised its outlook in view of the company's improved business risk profile, an expected uptick in scale and forward integration with capacity expansion and acquisitions, JSL said in a statement. "JSL has earned an outlook upgrade of Positive from Stable from the CRISIL Ratings on the long-term bank facilities and debt programme, and a reaffirmed rating at CRISIL AA-. Meanwhile, the rating on the short-term bank facilities has been reaffirmed at CRISIL A1+," it said. Some of the parameters that CRISIL Ratings took note of in order to elevate the outlook include the completion of the merger process of Jindal Stainless Hisar Limited (JSHL) with the company, the healthy financial risk profile of the company led by strong liquidity, its strategic acquisitions, an agile business

India Inc's key credit ratio moderated sharply in 2nd half of FY23: Crisil

India Inc's key credit ratios moderated sharply in the second half of FY23 on expected lines and are likely to go down further, Crisil Ratings said on Monday, maintaining that upgrades will continue to outpace downgrades. The Crisil credit ratio, or the number of upgrades to downgrades, moderated to 2.19 times for the October 2022-March 2023 period, as against 5.52 times in the first half of FY23. There were 460 companies whose debt got upgraded, as against 210 which saw a downgrade. Looked at from the outstanding debt perspective, the agency which rates 7,000 entities said the ratio moderated to 2.47 times, as against 7 times in the first half of the fiscal. The agency's managing director Gurpreet Chhatwal told reporters that it has a "positive bias" on the overall credit scenario quality for FY24, and the upgrades will continue to be higher than the downgrades even though there can be a further moderation in the ratios. Going forward, the key risk factors to watch out for, which

Manappurm Finance hits 52-week high; up 11% in a week on improved outlook

CRISIL Ratings believes MFL's capitalisation and asset quality will remain strong supported by its gold loan business.

Vedanta slips 2% in a strong market after nearly 2% equity changes hands

A combined 69 million shares, representing 1.86 per cent of total equity of Vedanta, have changed hands on the NSE and BSE so far

Domestic steel demand will continue to see healthy growth till FY25: CRISIL

The domestic stainless steel demand is expected to grow at a compound annual growth rate (CAGR) of 9 per cent till 2024-25 financial year, according to Crisil Ratings. The domestic demand for stainless steel was at 4 million tonnes (MT) in fiscal 2021-2022, the ratings agency said in a report on Thursday. "Domestic demand for stainless steel is projected to log a healthy compound annual growth rate of 9 per cent in the three fiscals through 2025, double the 4.5 per cent pace of the past five fiscals," the Crisil Ratings report said. The demand will be driven by increasing adoption of stainless steel in railways which is a focus area for government infrastructure spending, and rising application in the automobile and construction sectors. The demand growth, in turn, will spur capacity additions. However, the credit profiles of players are expected to remain comfortable, given stable profit levels and healthier balance sheets. "Adoption of stainless steel is increasing because of i

CRISIL lowers outlook on Adani Airport Holdings from 'stable' to 'negative'

The outlook revision indicates that the standalone credit profile of AAHL may weaken

Eye on expansion, Haldiram family to invest Rs 2,500 crore in 5 years

Mulls IPO upon the merger of Nodia, Nagpur businesses

Toll operators in India to see a revenue jump of 16-18% in FY23: CRISIL

In FY24, the revenue growth will continue to be strong, but it will be a lower 9-11 per cent

India's passenger vehicle sales to grow 9%-10% in 2024: Crisil Ratings

SUVs are expected to nearly double their share in overall domestic sales to roughly 55% in fiscal 2024 from about 28% in fiscal 2018