Page 2 - Crisil Report

Veg thali cost drops 8% in August, driven by low tomato prices: Crisil

Non-veg thali costs also reduced by 12% due to lower tomato prices, a kitchen staple in India, as well as reduced vegetable oil, spices, and fuel costs

Small Finance Banks' loan growth to lower to 25-27% in FY25: CRISIL Ratings

Small Finance Banks' (SFBs) loan growth will moderate to 25-27 per cent in FY25 against 28 per cent in FY24, a domestic rating agency said on Monday. Crisil Ratings said though a tad lower, the advances growth will be robust and driven by factors like segmental and geographical expansion by the entities. While capital buffers remain healthy, SFBs will face challenges in mobilising deposits and their costs and will explore alternative, non-deposit avenues to fund credit growth, the agency said. The asset growth will be driven by traditional microlending being the most popular and new ones like mortgages, small businesses or even unsecured loans. "Credit growth in new asset classes is seen at 40 per cent this fiscal, while that in traditional segments will be 20 per cent," its senior director Ajit Velonie said. He added that the share of new asset classes will cross 40 per cent by the end of March 2025 on the back of the faster growth and underlined that most of the asset ...

CRISIL SME Tracker: Steel MSMEs may see softer growth this financial year

Despite this, growth is still projected to exceed decadal averages and will continue to be aided by demand from infrastructure and construction segments

AUM of ARCs may decline 7-10% in FY25 due to lower acquisitions: CRISIL

AUM of private sector ARCs is expected to be Rs 1.2 - Rs 1.25 trillion in FY25 compared to Rs 1.35 trillion in the previous fiscal

Revenues growth from corporate banking moderates to 4% in 2023: CRISIL unit

Cash management growth to temper somewhat as peak rates level off: Study

Resolutions under Insolvency and Bankruptcy Code highest in FY24: Crisil

Recovery for financial creditors, however, declined to 27% compared to 36% in FY23

Regional print media to grow 8-9% from ad revenue, lower costs: CRISIL

Increasing advertisement demand and lower newsprint costs drive revenue and profitability for regional newsprint media companies, says CRISIL Rating report

FMCG sector to see 7-9% revenue growth this fiscal: CRISIL Ratings

The fast-moving consumer goods (FMCG) sector is expected to see revenue growth of 7-9 per cent this fiscal, according to a report released by CRISIL Ratings on Saturday. The expected revenue increase this financial year (2024-25) will be supported by higher volume growth on the back of a revival in rural and steady urban demand. The estimated growth of the FMCG sector in 2023-24 was 5-7 per cent. The report said product realisation is expected to grow in single digits with a marginal rise in prices of key raw materials for the food and beverage (F&B) segment. However, the prices of key raw materials for the personal care and home care segments are likely to be stable. CRISIL Ratings Director Rabindra Verma said, "Revenue growth will vary across product segments and firms. The F&B segment is expected to grow 8-9 per cent this fiscal, aided by improving rural demand. The personal care segment is likely to grow by 6-7 per cent, and the home care by 8-9 per cent." The FMCG players

CRISIL SME TRACKER: Road SME players' margins may remain stable in FY25

In FY24, state spends are expected to go up further by 8-12 per cent as their percentage achievement of budgetary allocations are expected to be largely in line with historical average

Rising deposit costs to weigh on NIMs, RoA of banks: CRISIL Ratings

Deposit costs are seen increasing 25-30 basis points in FY25, after rising about 140 basis points since May 2022

Indian ship recyclers' revenue likely to rise 15% this fiscal: CRISIL

The Indian ship recycling industry will see revenue growth of 15 per cent this fiscal after two years of decline, Crisil ratings said on Thursday. The rating agency said the growth will be supported by the increased availability of ageing vessels for recycling due to addition of new vessel capacity globally and higher competitiveness of Indian ship recyclers compared to key rival nations -- Bangladesh and Pakistan. "The Indian ship recycling industry will see revenue growth of 15 per cent this fiscal after two years of decline -- 22 per cent in fiscal 2024 and 8.5 per cent in fiscal 2023," it said. According to the rating agency, the increased availability of ageing vessels will bring down input cost for ship recyclers. "This, along with higher capacity utilization leading to better efficiency, will improve operating profitability by 75 basis points (bps) to 6.5 per cent this fiscal," it said. Crisil ratings said higher cash generation and absence of capital expenditure (capex), a

High property prices to boost debt recovery from realty projects: Report

Recovery of debt from stressed residential realty projects is set to increase in the current financial year due to higher property prices as well as changes in rules, a report said on Monday. The bad loan recovery rate is estimated to touch 16-18 per cent at the end of FY25 from 11 per cent as on March 31, 2024, domestic rating agency Crisil said in a report. "This will be driven by improved viability of stressed projects due to healthy demand and price appreciation seen in residential real estate and greater investor and promoter interest in reviving such projects," the agency said. It added that recent amendments to the Insolvency and Bankruptcy Board of India (IBBI) regulations for real estate projects should also strengthen resolution of stressed real estate assets in the medium term. The agency said it analysed the performance of its portfolio comprising security receipts of Rs 9,000 crore from 70 stressed realty projects with a saleable area of 66 million square feet while ..

Costlier vegetables made your thali more expensive by 9% in May: CRISIL

A vegetarian thali has roti, onion, tomato, potato, rice, dal, curd, and salad. A non-vegetarian thali has the same foods but chicken (broiler) replaces dal

CRISIL SME Tracker: Higher demand, PLI to propel electronics MSMEs in FY25

Various factors contributed to the growth, such as increasing penetration of internet and 5G services, rising consumer income, shorter replacement cycles, easier payment terms

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