Page 12 - Crisil Report

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

PFC's power drive flickering under record debt burden, govt scheme

The state-run financer for generators and distributors is struggling under a record debt burden even as it is being asked to underwrite the government's latest scheme to rescue inefficient discoms

Aluminium prices may go up over medium term, says Crisil Research

The price of aluminium is likely to go up in the medium term due to factors like surge in demand, Crisil Research on Tuesday said. The price of the metal fell 45 per cent from the March 2022 peak to around 2,400 dollar per tonne now due to factors like lockdown in China. "Aluminium prices have likely bottomed out and should rise over the medium term, supported by two structural drivers: limited smelter capacity additions and uptick in demand," it said in a statement. Limited capacity additions over the next five years will be crucial to pick up in the prices of aluminium, it said. The demand for aluminium is likely to see a structural growth over the medium term on account of global green investments, including electric vehicles, solar panels and renewable energy grids, most of which have high intensity of aluminium use. "Green investments across major economies will lead to a strong uptick in demand for aluminium, but global capacity addition is expected to fall from 20 MT during

CRISIL SME tracker: Export duty will hurt large steel players, spare MSMEs

MSMEs, which make up 90-95 per cent of re-rollers, witnessed a sharp margin contraction in FY21 owing to iron ore unavailability, and logistics and labour issues, among other factors

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

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

Kotak's maiden FoF eyes first close with Rs 500-crore commitment

It also intends to invest some money into co-investment opportunities available from such investee funds

Rupee at 80: Little relief on the cards from high trade deficit

Due to global risk aversion on the back of geo-political tensions and aggressive policy tightening by the Fed, the dollar has appreciated against most currencies, including the rupee

NH construction to be around 32-34 km per day during this fiscal: Crisil

India's national highway construction will likely reach only 32-34 km per day during the current financial year as input prices are expected to remain elevated, said rating agency Crisil

Securitisation volumes jump 70% to Rs 35,000 cr in Q1: CRISIL report

The Reserve Bank of India defines securitisation as transactions where credit risks in assets are redistributed by repackaging them into tradable securities

'India Inc staring at 3rd consecutive qtr of profit margins squeeze in Q1'

India Inc is staring at the third consecutive quarter of a year-on-year drop in profit margins for the April-June 2022 period, a Crisil Ratings arm said on Monday. Operating profit margins have likely fallen by 2-3 percentage points for the June quarter as compared to the year-ago period, Crisil Research said after analysing 300 companies excluding those from financial services and oil and gas sectors. It said almost half of the 47 sectors it tracks are likely to show a contraction in margins. Corporate revenues are estimated to have logged a healthy growth of 30 per cent on-year in the first quarter, largely supported by price hikes and moderately rising volumes, it said. The rating agency estimates come ahead of earnings for the June quarter by a majority of companies, which come amid adverse events like the impact on commodities because of the geopolitical tensions and depreciation in the Indian rupee to record lows. Operating profit margins in construction-linked sectors are ..

SME EPC road contractors face shrinking margins as input costs spike

However, national highway projects are typically executed by large contractors, with only a small proportion sub-contracted to SMEs

Mobile imports down 33% in FY22 as local production rises: Report

This growth is in spite of the ongoing chip shortage, and three of the global manufacturers met the PLI production targets in FY22

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

Corporate defaults may rise again on cost pressures: Crisil report

Crisil warned of more companies defaulting on their debt obligations as it expects withdrawal of pandemic-induced relief measures coupled with volatile input prices creating cost pressures

Duty-related measures to cut India's steel exports by 40% in FY23: CRISIL

India's steel exports is expected to come down by 40% to 12 million tonnes (MT) in the ongoing fiscal, as a result of the duty-related measures taken by the government last month, according to CRISIL

Private telcos to hike tariffs in H2; FY23 revenues to jump by 25%: Report

A growth in average revenue per user is essential for the industry to invest in the network and spectrum, and if they do not do so, it can result in poor service offerings, Crisil said in a report

Tyre makers' capital expenditure to rise to Rs 5,000 cr in FY23: CRISIL

The report is based on the analysis of the top six domestic tyre makers, who account for 80 per cent of the Rs 75,000 crore of the sector, CRISIL said

Steel prices likely to fall to Rs 60,000/tonne by March: CRISIL report

Steel prices, which have been on a song for the past two years, are finally set to correct on weak seasonality, and may trade at around Rs 60,000/tonne by the end of the current fiscal year

Cumin prices to touch 5-year high as output shrinks by third: Report

Crisil estimates cumin prices to shoot up 30-35 per cent to touch a five-year high of Rs 165-170 per kg in the Rabi season 2021-2022

Bank credit growth to hit 4-year high of 11-12% in FY23: CRISIL

Corporate segment credit pace to double at 8-9%