Page 7 - Crisil Report

Road transport fleet operators' revenue to grow by 9-11% in FY25: CRISIL

The agency expects operating margins of fleet operators to increase by 75-100 basis points (bps) in the ongoing fiscal year

Organised jewellery retailers to witness 17-19% revenue growth: CRISIL

Organised gold jewellery retailers are expected to clock 17-19 per cent year-on-year revenue growth in 2024-25, driven by higher realisations following a surge in gold prices, while volume is likely to remain steady, a report said on Wednesday. The revenue of organised gold jewellers is expected to rise 17-19 per cent this fiscal, while volume growth is likely to stagnate due to rising gold prices, Crisil Ratings said in a report. The report further stated that the working capital requirements of retailers might increase due to higher inventory levels resulting from the substantial rise in gold prices and new store additions. However, credit profiles should remain stable, it added. The organised sector accounts for slightly more than a third of the market, with the highly fragmented unorganised sector making up the rest, it noted. Domestic gold price increased 15 per cent during FY24 and reached Rs 67,000 per 10 grams at the end of March 2024, Crisil Ratings said. Gold prices inch

India GCCs emerge as proof-of-concept foundries for GenAI applications

Companies are utilising GCCs as a "sandbox environment" to develop PoCs that accelerate their digital journey by leveraging GenAI across relevant domains

Fund Pick: Nippon India Large Cap Fund leads from the front, says CRISIL

The fund has consistently outperformed its peers in all trailing periods under analysis

CRISIL results: Net profit drops 5% to Rs 138 crore in Jan-March quarter

Ratings firms Crisil on Tuesday reported a 5.4 per cent drop in consolidated net profit to Rs 138 crore for the first quarter ended March 31. The company had posted a net profit of Rs 146 crore in the same period last year. Crisil's consolidated total income rose to Rs 751 crore for the quarter ended March 31, 2024, from Rs 732 crore a year ago, the company said in a regulatory filing. At the same time, expenses increased to Rs 563 crore during the quarter against Rs 539 crore in the year-ago period. Its board has also approved the payment of an interim dividend of Rs 7 per equity share of face value of Re 1 each, for the financial year ending December 31, 2024, which will be paid on May 14, 2024, it said. Crisil follows a calendar year as its financial year. The rating agency expects India's GDP growth to moderate to 6.8 per cent in fiscal 2025 due to high-interest rates, fiscal consolidation and uneven global growth. On the other hand, healthy corporate balance sheets, a robus

Credit quality of Indian companies stayed healthy in H2FY24, says CRISIL

Rating upgrades surpassed downgrades in H2FY24. Outlook remains robust for H1FY25

First-time car buyers now choosing SUVs: Hyundai India COO Tarun Garg

Garg expressed his disagreement with concerns that the drop in hatchback sales implies that several first-time buyers are being edged out of the car market itself

CRISIL raises India's GDP growth forecast to 6.8% from 6.4% for FY25

On the inflation front, Crisil expects softening to continue in the next fiscal on the back of healthier agriculture output that tames food inflation, and benign oil and commodity prices

India to become upper middle-income nation by 2031, to grow at 6.8%: CRISIL

Crisil Ratings on Wednesday projected India's GDP growth at 6.8 per cent in the next fiscal and said the country will become an upper middle-income nation by 2031 with the economy doubling to USD 7 trillion. In its India Outlook report, Crisil said the Indian economy will take support from domestic structural reforms and cyclical levers and can retain -- perhaps even improve -- its growth prospects to become the third largest economy by 2031. "After a better-than-expected 7.6 per cent this fiscal, India's real GDP growth will likely moderate to 6.8 per cent in fiscal 2025," said the Crisil India Outlook report. It said that the next seven fiscals (2025-2031) will see the Indian economy crossing the USD 5 trillion-mark and inching closer to USD 7 trillion. "A projected average expansion of 6.7 per cent in this period will make India the third-largest economy in the world and lift per capita income to the upper-middle income category by 2031," Crisil said. India, with a GDP size of

SUV share in total PV sales may rev up to 62% by FY25, says CRISIL

PV sales to grow by 5-7 % in 2024-25: Crisil

PV volume to rise by 5-7%, touch new peak in next fiscal: CRISIL report

Passenger vehicle (PV) volumes are expected to log 5-7 per cent growth, touching a new peak for the third straight time in the next fiscal driven by the SUV segment, credit rating agency Crisil said on Monday. This anticipated growth is expected to come on the back of an estimated high base of 6-8 per this financial year even as demand for cars and exports remain muted, it said. A significant change in consumer preference has cranked up demand for SUVs leading to its market share doubling to around 60 per cent of total domestic volume this fiscal from around 28 per cent before the pandemic in fiscal 2019, the ratings agency said. This preference is expected to grow further, backed by a healthy pipeline of new model launches across price points, including electric variants, and normalised availability of semiconductors after a prolonged period of short supply, it said. "While the overall PV volume is seen rising 5-7 per cent next fiscal, we expect demand for SUVs to accelerate at .

Hospitality industry expects 11-13% revenue growth on domestic demand

The hospitality industry is expected to clock 11-13 per cent revenue growth in 2024-25 on steady domestic demand and a rise in foreign travellers, a report said on Monday. This revenue growth will follow a likely 15-17 per cent growth in the current financial year, backed by steady domestic demand and ramp-up in foreign travellers, Crisil Ratings said in a report on Monday. The strong demand dynamics along with modest new supply will keep the operating performance of the industry healthy over the near term, the report added. According to the report, the healthy operating performance will augur well for the industry profitability where the EBITDA, or earnings before interest, taxes, depreciation, and amortization will continue the strong momentum over the current and the next fiscal. This, along with limited capital expenditure, will keep the credit profiles strong, the report noted. "The domestic travel demand, which remained a key driver this fiscal, will sustain next year as wel

Farmers pause protest before next round of talks; Centre says solution soon

The eight crops taken by CRISIL for the analysis represented over 90 per cent production of the field crops in the period

Indian economy to grow at 6.7% between fiscals 2024 to 2031: CRISIL

The Indian economy is expected to grow at an average rate of 6.7 per cent per annum until the end of the decade, CRISIL said in its latest report. The economy will grow at this rate between the financial years 2024 to 2031, a notch above the pre-pandemic average of 6.6 per cent. According to CRISIL, the key contributor to this trend will be capital. This is a result of the investment-driven strategy of the government when the private sector was shy of making investments. The government increased capital expenditure significantly to support building expenditure and providing interest-free loans to states to bolster their own investment efforts, the report said. CRISIL said that after a robust 7.3 per cent growth this fiscal, there will be moderation to 6.4 per cent in the next financial year. There is also a need to monitor the impact of the escalation of the Middle East conflict on energy and logistics costs, it said. In India, the inflation level of 5.7 per cent in December 202

Fund Pick: Franklin India Flexi Cap Fund is a diversified outperformer

The fund aims to provide capital growth to investors through a diversified portfolio of equities, fixed-income securities, and money market instruments

India Inc likely to report 8-10% revenue growth in Q3: CRISIL Ratings

Corporates' revenues are likely to have grown 8-10 per cent in the 2023 December quarter on an annual basis, according to a report. The operating profits have likely expanded 100-150 basis points on-year in the three months ended December 2023, giving the corporates an overall operating margin of 19-20 per cent in the first nine months of 2023-24 fiscal, as per Crisil Ratings. Revenue growth would have been stronger but for the decline in agri-linked sectors such as fertilisers, consumer staples such as edible oils, industrial commodities like chlor-alkalis and commodity chemicals, and aluminium, Crisil Ratings said in the report based on the analysis of 350 companies, excluding financial services and oil and gas sectors. Also, the rating agency said that revenue growth seemed to be propelled by volume. Aniket Dani, a director with the agency, said construction-linked sectors, which together account for 20 per cent of the overall revenue, grew 5-7 per cent as construction activity

Interim Budget 2024-25 likely to set nominal GDP growth at 10-10.5%

Govt may finalise FY25 Interim Budget assumption this week

Steel sector boom to continue in FY24 but moderate in FY25 : CRISIL

The Indian steel sector has enjoyed a multi-year demand surge which will continue in the current FY'24 but it is expected to moderate in the coming fiscal, global analytics company Crisil said. The sector has witnessed double digit demand growth rate of 11 to 13 per cent during three consecutive years and is likely to moderate to 3 to 5 per cent in FY'25, Miren Lodha, Director Research, Crisil Market Intelligence and Analytics said on Friday. "We are clearly in the midst of a demand supercycle," Lodha told PTI. The moderation is likely in the long steel segment in FY'25 ahead of the general election. The only other instance of such a demand surge in the last two decades was between 2006 to 2008, he said. Lodha said the infrastructure sector, a key driver of the steel demand, is expected to maintain its momentum fuelled by ongoing government projects. The infrastructure segment has been driving a lot of momentum in the steel demand and is expected to continue in the coming years.

Residential realty's robust run, housing demand up 6-9% in top 8 cities

As the industry consolidates, residential developments are being executed by a handful of large developers who have successfully navigated the economic challenges posed by the pandemic

CRISIL analysis: India powering ahead on renewable energy targets

In generation terms, this would mean a 46 per cent penetration for renewable fuels