Page 9 - Crisil Report

CRISIL upgrades ratings on Inox Wind with stable outlook on debt shrink

Crisil has upgraded its ratings on Inox Wind Limited with a stable outlook, according to a regulatory filing. Part of INOX GFL Group, Inox Wind Limited is India's leading wind energy solutions provider servicing independent power producers (IPPs), utilities, public sector units (PSUs) and corporate investors. "CRISIL has upgraded its ratings from Crisil BBB+ to Crisil A- (long term rating), Crisil A2 to Crisil A2+ (short term ratings) with stable outlook in relation to ratings of its banking facilities," the company said in a regulatory filing. Crisil's rationale for upgrading Inox Wind's ratings reflects the steps undertaken by the promoters in fiscal 2024 to reduce debt, leading to significant improvement in the financial risk profile, improvement in the business risk profile which the company has demonstrated by delivering significant improvement in operating performance in the first half of fiscal 2024 and commercialisation of the 3.3 megawatt (MW) turbine. The upgrade in ratin

Fertilisers & diamonds may be hit slightly due of Mideast crisis: Crisil

Domestic credit ratings agency Crisil on Tuesday said some sectors such as fertilisers and diamonds may be slightly impacted by the conflict in the Middle East. On a broader basis, the conflict has caused only a negligible disruption in India's trade so far, it said in a note. Some sectors such as fertilisers and diamonds both cut and polished may see a slight, but manageable, impact, while for most others impact will be insignificant, it said. However, it said that the conflict which started after the surprise October 7 attacks by Hamas against Israel has driven up prices of gold and crude oil which need to be watched. It said crude oil price movements are especially important for a country like India which depends on imports, and added that elevated crude oil prices have a cascading impact on a host of other sectors that consume the oil itself or linked raw materials. The agency said India's trade with Israel is relatively low, with the country accounting for only 1.9 per ce

Costlier onion, pulses likely to push up thali prices in November: CRISIL

In October, the price of pulses, which accounts for a nine per cent share in the total cost of a veg thali, increased by 19 per cent year-on-year. This kept the thali cost from falling further, CRISIL

Data centres to see Rs 45,000 crore investments till FY26, says Crisil

The data centre industry is estimated to get investments of up to Rs 45,000 crore till the end of FY26, a domestic credit ratings agency said on Wednesday. The higher investments will be on account of demand for data and storage, Crisil Ratings said in a note. Large enterprises are increasingly embracing cloud solutions, which is fuelling the surge in demand for data centres, the agency said, adding that rising usage and adoption of Over-The-Top (OTT) platforms is driving up retail data consumption. It said mobile data traffic alone has risen at an annual rate of 45 per cent over the last five years. The newly launched 5G services will amplify data consumption among retail users even further, which will produce data that will finally be stored in data centres, the agency said. Moreover, there is an enhanced regulatory emphasis on local storage of personal data as stipulated under the Digital Personal Data Protection Act as well as through policies formulated by some of the sector

SBI mulls to raise up to Rs 10,000 cr tier-II bond issue next week

The bonds are rated AAA by consulting and rating firms CRISIL and India Ratings

Diamond polishing industry revenue may drop 30-35% this fiscal: CRISIL

India's diamond polishing industry will see its revenue drop by 30-35 per cent to USD 14-15 billion in current fiscal year on poor demand from the US, EU and China, rating agency Crisil said on Wednesday. These three geographies account for 75 per cent of India's polished diamond exports, it added. "Israel imports USD 1.25 billion worth of polished diamonds annually from India. With the country now declaring a war on the Palestinian militant group Hamas, this number could be at risk," said Rahul Guha, Director, Crisil Ratings. There is some increase in demand in the second half of every fiscal from festivities such as Thanksgiving, Christmas and the Chinese New Year, but this is unlikely to provide a significant offset this time, he said. "Consequently, we see the Indian diamond industry shrinking by over a third on an annualised basis this fiscal," he noted. According to Crisil, with the inventory of higher-cost polished diamonds piling up to over four months of sales, profitabil

India to spend Rs 143 trillion in infrastructure by 2030, says Crisil

Green investments will also see a five-fold rise from the past seven years to Rs 36.6 trillion

India's green hydrogen mission is high on ambition but low on resources

The subsidy per unit of green hydrogen output is minuscule compared to what Western powers are offering, and unconvincing for domestic offtake

North East Small Finance Bank to sell over Rs 600 crore stressed assets

Consequently, credit costs are expected to start tapering down gradually, leading to normalisation in profitability in the normal course of business

India Inc revenues to rise 8-10% in Q2, profit margins to expand: Crisil

India Inc is all set to report an 8-10 per cent jump in revenues for the September quarter while profit margins will also witness an expansion, an arm of rating agency Crisil said on Friday. This will be the first time in four quarters that the revenue growth will see an increase, it said. Automobiles, construction (which benefitted from truant monsoons) and information technology services sectors will be driving the revenue growth in the quarter, the rating agency said, adding that the year-on-year revenue growth in the preceding June quarter had stood at 7 per cent. The agency said its expectations are based on an analysis of 300 companies excluding ones in banking and oil sectors. "Growth in revenue was largely skewed towards consumer discretionary products and services, where automobiles and the retail sector led the pack, and construction-linked sectors, where companies accrued benefits from an early deployment of capital expenditure by the roads and railways ministries, Direc

Falling tomato prices bring down cost of veg, non-veg thalis in Sept

The fall in tomato prices, which declined 62 per cent month-on-month (M-o-M) to Rs 39 a kg in September from Rs 102 a kg in August, was the major contributor

Securitisation activity unaffected by HDFC merger, surges 35% in H1: CRISIL

Securitisation volumes have grown 35 per cent to over Rs 1 lakh crore in the first half of the current fiscal, domestic ratings agency Crisil said on Thursday. The overall volume of securitisation -- wherein one lender bunches up a loan or a set of loans and passes on the future receivables to another financier against an upfront payment -- had stood at Rs 75,000 crore in the April to September period, it said. It attributed the jump in activity to banks' continued interest in retail assets, and strong credit growth among originating Non-Banking Financial Companies (NBFCs). The volume remained unfazed by the exit of a large housing finance company (HFC) from the securitisation space in the second quarter of this fiscal, following its merger with an affiliate bank. "The exit of one of the largest originators last quarter has been more than made up by other financiers. The overall first-half volume is now trending in line with pre-pandemic levels when the FY20 volume had touched Rs 1

Softening of tomato prices brings down cost of veg, non-veg thalis in Sept

The tomato prices shrunk 62% in September to Rs 39 per kilogram (kg) as compared to Rs 102 per kg in August

CRISIL upgrades Thomas Cook's credit rating in both short and long term

Omnichannel travel services firm Thomas Cook (India) Ltd on Tuesday said CRISIL has upgraded its credit rating both in the short- and long-term. "CRISIL has upgraded rating on the bank facilities of Thomas Cook (India) Ltd (TCIL) to 'CRISIL AA-/Stable/CRISIL A1+," TCIL said a statement. The rating upgrade in the long term to 'AA-/Stable' from 'CRISIL A+/Stable' and in the short term to 'CRISIL A1+' from 'CRISIL A1' reflects Thomas Cook India Group's strong scale-up in revenue across businesses and expectations of sustained momentum driven by brisk revival in demand after the pandemic-induced disruptions, according to the company's statement. The ratings are indicative of TCIL's strong business risk profile with leadership position in travel and foreign exchange segments and healthy presence in hospitality (Sterling Holiday Resorts) and digi-photo imaging segments, as per CRISIL Ratings. The company has also improved its financial risk profile following sharp revival in business ...

India Inc's financial health moderates in H1FY24, may dip marginally in H2

India Inc's financial health measured by the credit ratio, or the proportion of rating upgrades to downgrades, moderated in the first half of current fiscal year and is set to dip marginally further in the second half, Crisil Ratings said on Tuesday. Crisil, which rates 6,500 companies, however, made it clear that the credit ratio will stay above 1 going forward as well, which means the number of upgrades will outpace the downgrades. In April-September FY24, there were 443 upgrades as compared to 232 downgrades, the agency said, adding that the credit ratio moderated to 1.91 from 2.19 in the preceding six months. It said the upgrades are much higher than the decadal average, but the downgrades are inching up lately, largely due to difficulties faced by export-linked sectors due to slowing growth in the world. Crisil's Managing Director Gurpreet Chhatwal said the moderation in the first half was along expected lines, and the government's infrastructure push and spending are helping

Credit quality of export, commodity-linked sectors to face pressure: Crisil

Rating upgrades outpace downgrades in H1FY24

Sept rains improve, but do little for seven states: CRISIL's DRIP Index

During the month, rains caught up most in central India (0 per cent of LPA on September 26 vs -10 per cent on August 31), and the southern peninsula (-9 per cent vs -17 per cent)

India's bank credit growth likely to moderate to 13-13.5% in FY24: CRISIL

"The extent to which deposit growth picks up would determine credit growth for banks," said Subha Sri Narayanan, Director at CRISIL Ratings

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 .

Led by festival season, revenue of apparel retailers to grow 7-8% in FY24

The revenue density, calculated as revenue per square feet, is, however, expected to remain below the pre-pandemic level: CRISIL