Page 7 - Crisil Ratings

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M&As to drive hospital expansion in uncharted territory, say experts

Inorganic expansion gives instant market share in a new geography, greenfield works better in markets where a chain already has a presence, say industry players and analysts

Bank credit to grow 15% YoY in FY23, FY24 on corporate demand: CRISIL

Lenders may have to raise deposit rates at faster pace, says senior executive of agency

Stock of this SS pipes producer has zoomed 100% against its issue price

With Wednesday's gain, the stock of Venus Pipes has zoomed nearly 100 per cent against its issue price of Rs 326 per share

India Inc's credit quality continues to improve in H1, may moderate: Crisil

India Inc's credit quality showed further improvement in April-September period with the ratio of upgrades to downgrades inching higher. The credit ratio's improvement to 5.52 in H1FY23 as compared to 5.04 in H2FY22 was driven by leaner balance sheets led by healthy cash flows and muted investments, Crisil Ratings, which rates 6,800 companies, said. However, the agency clarified that the data may not be fully representative as many small businesses with outstanding ratings have turned non-cooperative in sharing data on a continued basis which can be driven by adverse financial health. India Inc has emerged stronger post-pandemic, its managing director Gurpreet Chhatwal said, exuding confidence that the corporate India can weather the current storm caused by global events like higher inflation and monetary tightening which will hurt India's exports. Crisil's senior director Somasekhar Vemuri said there can, however, be a moderation in the credit ratio going ahead due to some of the

Receivables of leading RE companies to shrink 20% this fiscal: Crisil

Receivables of leading renewable companies will shrink 20 per cent during this financial year, Crisil Ratings said. Leading renewable energy (RE) companies are set to see their receivables reduce a fifth from 180 days a year ago to 140 days as of March 2023, a level last visible pre-COVID, the agency said in a statement. According to the statement, two-thirds of the improvement will be because of increasing central counter-party offtake, and the rest due to state discoms implementing the late payment surcharge (LPS) scheme. The incremental cash flow will allow RE companies to build capacity for growth and reduce leverage, it opined. Payment cycles had stretched in the past two fiscals because state discoms such as Madhya Pradesh, Maharashtra, Telangana and Andhra Pradesh (accounting for 23 per cent of the overall capacity exposure) held back payments to RE developers following liquidity crunch or contractual disagreements, it added. This increased the overall cycle for the 10 asse

Punjab & Sind Bank's asset quality deterioration to moderate: CRISIL

Decrease in slippages and higher recoveries to help state-owned lender, says agency

After 5G auction, analysts expect telecom firms to increase rates again

They say tariff could be raised even for 4G services in a bid to increase 5G adoption

Double the pain for Surat diamond industry as demand falls, costs rise

Western markets fear recession and domestic business is uncertain ahead of festival season later this year

Craftsman Automation rallies 6%, hits 8-month high on improved outlook

The company expects sustained improvement in business performance over the medium term driven by the recovery in offtake from automobile sector.

Cost pressure may spike default rates among lower-rated firms: Crisil

Sub-investment grade MSMEs are at high risk; sunset for pandemic-induced relief measures to have a bearing too

CRISIL upgrades IOB's Basel III compliant tier II bonds from 'A+' to 'AA-'

CRISIL, in a statement, said the capital position has been supported by regular fund infusion and expectation of strong support from the majority stakeholder, the government

NBFC profitability to remain stable amid 85-105 bps in funding cost: Crisil

Rs 15 trn debt as on March 31 is due for repricing in FY23 owing to interest reset or maturity. Another Rs 3 trn of incremental debt is likely to be raised to support growth in lending

Taxing times for solar power as govt frowns at imports, pushes local

A new tax on solar equipment imports plus mandatory purchase of local modules will raise costs significantly and dim the outlook for meeting green energy targets

Steel industry: From sprint to jog as export duty hike plays speed breaker

Now, beginning June, steel mills are expected to announce a cut for monthly contracts

Stressed assets of NBFC-MFIs likely declined to 14% as of end-March: Crisil

However, stressed assets of NBFC-MFIs, which comprise of 30+ Portfolio at Risk (PAR) and loan book restructuring remains well above the pre-pandemic level of around 3 per cent

Apollo Global Management bets big on Indian realty with $1-billion plan

About 70 per cent of this year's lending will go to home builders and the rest to commercial developers.

Paper stocks in demand; JK Paper, Seshasayee Paper surge up to 14%

Paper stocks rallied on expectation of strong earnings supported by robust growth in the packaging board segment and continued demand in the writing and printing paper segment.

Poonawalla Fincorp hits 52-week high; stock soars 44% in a month

In the past six months, the stock has been more-than-doubled or zoomed 110 per cent, as compared to 3.3 per cent decline in the S&P BSE Sensex.

LT Foods surges 14% in two days on heavy volumes; stock nears 52-week high

Ratings agency CRISIL believes organic business profitability of LT Foods should lead to higher consolidated EBITDA in the fourth quarter of 2022.