Page 7 - Crisil

Bank NIMs to compress 10-120 bps in FY24: Rating agencies CRISIL and ICRA

With a healthy loan profile, credit costs fall further from 0.7% in FY23

FLDG norms may dampen biz volume in segments with higher 5% limit: CRISIL

However, there won't be an overall impact on reported profits as the FLDG amount received will now be reckoned as a part of income

Debt-to-earnings ratio of steel makers to remain below 2 times: Crisil

Research firm Crisil Ratings on Monday said it expects the net debt-to-EBITDA ratio of domestic steel manufacturers to stay below the level of 2 times in the financial year 2023-24. The steel makers had reported the ratio of net debt to EBITDA in the range of 1.6-1.7 times in preceding financial year (FY) 2022-23, Crisil Ratings said in a report. "Domestic primary steel manufacturers are likely to see their leverage, in terms of net debt to earnings before interest, tax, depreciation and amortisation (Ebitda) ratio, remain below 2.0 times this fiscal (compared to an estimated 1.6-1.7 times in fiscal 2023) despite undertaking capital expenditure to cater to growing demand," it said. With the leverage much lower than the average of 3.5 times, seen during past five fiscals, the median credit quality of the sector is unlikely to be affected as balance sheets of the players will remain healthy. Further, project risks are expected to be low due to the brownfield nature of bulk of the ...

For a veg thali of Rs 100, Indians paid Rs 109 in 2022; Rs 132 for non-veg

The rise was sharper in the case of non-veg thali because chicken prices rose 55% between April and December

Crisil launches three new AIF benchmarks to gauge performance

With this Crisil has 10 benchmarks across the three AIF categories

NBFC education loans to grow around 40% to Rs 35,000 crore in FY24: CRISIL

The education loans by NBFCs would grow moderately but still be healthy as compared with the previous fiscal year, CRISIL said

Paint companies to log 10-12% growth in revenue this fiscal: Report

Continuing healthy demand from construction, real estate and automobile sectors will help the paint sector register a 10-12 per cent revenue growth this fiscal against an 18 per cent estimated rise in the just-concluded fiscal, according to a report. Volume expansion and the resultant cash generation will help paint companies maintain healthy balance sheets, which will also buffer credit profiles despite the rising capex, Crisil said in a report on Wednesday. The top five companies have announced Rs 12,000 crore capex in fiscal 2023 and 2024 on the back of Rs 7,000 crore they incurred in the previous four fiscals. New players are expected to add nearly one-third of the total existing capacity of 4.2 billion litres by fiscal 2025-end, the report added. Paint companies are likely to close FY23 with a robust 18 per cent revenue growth, primarily led by higher realisations on the back of a 6 per cent price hike during the year, along with the full impact of a 20 per cent price hike ...

Crisil reports 20% rise in net profit to Rs 145.8 cr in Jan-Mar quarter

Rating agency Crisil on Tuesday reported a nearly 20 per cent on-year rise in net profit to Rs 145.8 crore in the first quarter ending March 2023. The company said consolidated income for the quarter rose by 19.1 per cent to Rs 732.2 crore compared to the year-ago period. Amish Mehta, the managing director & chief executive said the company saw growth across businesses stemming from demand for insights and analytics, amid macro and global market uncertainties. However, he warned of cloudy days saying flanks of caution are building up because of the imminent slowdown in developed economies, and the lagged effect of the past repo rate hikes is expected to manifest through domestic demand in the months ahead. Corporate bond issuances grew 48 per cent by quantum in the first quarter on-year, and 8 per cent by the number of issuers. Bank credit continues to grow well, leading to healthy uptick in bank loan ratings, all this will have the economy clipping at 6 percent this fiscal.

Mahindra Finance to raise upto Rs 8,000 crore through debentures in FY24

The company continued to maintain a comfortable liquidity chest of about three months' requirement, according to the NBFC's filing with BSE

Power demand rises 7% in March quarter on robust economic activity: Report

Power demand in the country rose 7 per cent on an annual basis in the three months ended March, according to a report. Rating agency Crisil in its latest report also said that in March, there was a year-on-year decline of 1.3 per cent in power demand. "Although the month (March) saw a decline in demand, the fourth quarter of fiscal 2023 witnessed a 7 per cent on-year growth as January and February had seen demand grow 13.7 per cent and 10 per cent, respectively," it said. The growth in the March quarter was led by increased heating requirement in winter months and robust economic activity, it added. The report also said that despite the drop in power demand in March, prices increased 13 per cent on-year in the fourth quarter of last fiscal. As per the report, in fiscal 2024, soaring temperature and resilient economic activity are expected to keep power demand growing. On average, the first quarter of this fiscal should see power demand grow 4 per cent on-year on a high base of th

Power demand in India shrinks in March thanks to unexpected rains: CRISIL

The fall in demand also led to a fall in power generation by 7 per cent YoY in March as compared to the same month last year

Bank NPAs to improve to decadal low of 3.8% by FY24-end, says Crisil

Banks' gross non-performing assets (NPAs) will reduce further to a decadal low of 3.8 per cent by end of FY2023-24, credit rating agency Crisil said on Monday. The agency estimates NPAs to reduce to 4.2 per cent by end of the just concluded FY23 as against 5.9 per cent in the year-ago period. It had earlier estimated NPAs to come at 4 per cent by end of FY24. Crisil said a major factor influencing the bank NPAs is the improvement in the high-value corporate loanbooks, where the gross NPAs are slated to come below 2 per cent. Corporates have been reducing their leverage through a string of measures, including prepayment of loans as well. Additionally, strengthened risk management and underwriting is also helping the lenders towards lowering the NPAs, the agency said. When asked about the growing trend of writing unsecured loans in the retail segment, the agency's deputy chief rating officer Krishnan Sitaraman said they occupy a very small proportion of the overall loans. He said 26

India Inc's credit quality outlook positive for FY24, say Crisil and Icra

Interest rate hikes, global slowdown, stubborn inflation pose risk

Indian IT services firms likely to post muted revenue growth in Q4

FY24 revenue growth may decline by 700-900bps: CRISIL Ratings

Revenue growth of IT firms in FY24 to be 7-9% lower than FY23: CRISIL

The key reason for the sharp fall in revenues is the slowdown in the BFSI segment, which accounts for 30% of the sector's revenues

Domestic steel demand will continue to see healthy growth till FY25: CRISIL

The domestic stainless steel demand is expected to grow at a compound annual growth rate (CAGR) of 9 per cent till 2024-25 financial year, according to Crisil Ratings. The domestic demand for stainless steel was at 4 million tonnes (MT) in fiscal 2021-2022, the ratings agency said in a report on Thursday. "Domestic demand for stainless steel is projected to log a healthy compound annual growth rate of 9 per cent in the three fiscals through 2025, double the 4.5 per cent pace of the past five fiscals," the Crisil Ratings report said. The demand will be driven by increasing adoption of stainless steel in railways which is a focus area for government infrastructure spending, and rising application in the automobile and construction sectors. The demand growth, in turn, will spur capacity additions. However, the credit profiles of players are expected to remain comfortable, given stable profit levels and healthier balance sheets. "Adoption of stainless steel is increasing because of i

CRISIL lowers outlook on Adani Airport Holdings from 'stable' to 'negative'

The outlook revision indicates that the standalone credit profile of AAHL may weaken

CRISIL revises outlook on Vedanta's loans from 'stable' to 'negative'

The change reflects the possibility of higher-than-expected financial leverage and lower financial flexibility with reducing ratio of cash surplus to one-year maturities for FY23 and FY24

Toll operators in India to see a revenue jump of 16-18% in FY23: CRISIL

In FY24, the revenue growth will continue to be strong, but it will be a lower 9-11 per cent

Tractor sales growth to halve in FY24, operating margins to improve: CRISIL

However, softening prices of inputs such as steel and pig iron will provide a 100-200 basis points (bps) respite to the operating margin of tractor makers