Latest news with #Crisil
Hans India
21 hours ago
- Business
- Hans India
India's credit rating agencies demolish allegations against Vedanta
India's leading credit rating agencies, Crisil Ratings and ICRA have reaffirmed the Company's credit ratings, underscoring continued confidence in Vedanta's overall business stability, healthy financial performance and strong adherence to corporate governance. Significantly, the Crisil report notes that based on feedback from management and select lenders, the rating agency 'understands that currently there has been no adverse reaction from any lender or investor.' The rating agency reaffirmed its long-term ratings of Crisil AAA for Hindustan Zinc Ltd and Crisil AA for Vedanta. ICRA has reaffirmed its long-term rating at AA. The agencies' assertion comes as a strong rebuttal to short seller Viceroy's allegations that had charged Vedanta Ltd's parent, Vedanta Resources of structural subordination and reliance on dividends to service debt. The CRISIL report further said that stock prices for both Vedanta Ltd and Hindustan Zinc Ltd have already recovered since the publication of the report. 'Crisil Ratings has taken note of the short-seller report on the Vedanta group, published on July 9, 2025, and the subsequent intraday volatility in the share prices of Vedanta Limited and Hindustan Zinc Limited. The Vedanta management in response, via its press release dated July 9, 2025, has dismissed all the charges. Crisil notes that the stock prices for Vedanta Limited (VEDL) and Hindustan Zinc Limited (HZL) have recovered since the report's publication,' the note said. Crisil has ratings outstanding on 11 entities of the Vedanta group including Hindustan Zinc, ESL Steel Ltd, Talwandi Sabo Power Ltd and Sesa Resources Ltd and ratings have been reaffirmed for all. 'Crisil keeps all its outstanding ratings under continuous surveillance. The ratings of Vedanta and its subsidiaries continue to be supported by the strength of the business risk profiles of their Indian operations and healthy financial performance,' the note said. Similarly, ICRA has drawn comfort from the Group's stated commitment towards continued debt reduction. The leverage (net debt/OPBDITA), including Vedanta Resources Limited's (VRL) debt, improved to 2.5 times in FY2025 compared to 3.2 times reported in FY2024. Healthy profitability, particularly in the aluminium and zinc operations, is expected to further support the Group's leverage profile. Moreover, ICRA considers the total debt and financial expenses of VRL to calculate the adjusted leverage and coverage metrics of Vedanta Limited (VDL). As per credit rating methodology, AAA rating signifies Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk. Similarly, AA rating signifies Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Therefore, the allegations made in the report regarding Vedanta's unsustainable debt and financial fragility are completely unfounded and lack any credible basis. Given that Vedanta's instruments carry the highest (AAA) and very high (AA) credit ratings, it clearly demonstrates their robust financial health and exceptional capacity to meet their obligations on time. Such ratings unequivocally reflect the lowest levels of credit risk, firmly contradicting any claims of vulnerability or instability. At Vedanta Resources Limited's level, the recent refinancing of debt has smoothened the maturity profile over the long tenure and is likely to reduce the finance cost FY2026 onwards.
Mint
2 days ago
- Business
- Mint
India preps new blueprint for farm export boost, engages Icrier, Crisil
Amid growing global trade uncertainties and protectionist pressures, India is set to chart a new course to strengthen and diversify its agricultural exports that accounted for $51.91 billion in FY25. To drive this effort, the Agricultural and Processed Food Products Export Development Authority (Apeda), a government agency under the commerce ministry, has commissioned the Indian Council for Research on International Economic Relations (Icrier), a top economic think tank and Crisil, a credit rating and analytics firm, to develop a comprehensive blueprint to chart the expansion of India's reach in the key global markets. This effort will analyze and map the entire value chain of high-potential agricultural and processed food products, identify challenges and opportunities, and recommend strategies tailored to specific regions and countries. The goal is to diversify India's export destinations beyond its historical focus on West Asia, Africa, and Asia Pacific, opening doors to markets in Europe, the US, Japan, and South Korea. "We have identified around 32 high potential product categories that are poised to drive the next phase of India's agricultural export. To capture the opportunities, we have entrusted ICRIER and Crisil to conduct detailed market studies for each product and the top 20 potential markets for the identified commodities," said a senior official at Apeda. The commodities in focus include basmati and non-basmati rice and fruits such as banana, mango, pomegranate and pineapple that enjoy strong international demand. Among vegetables, potato, cucumber and green chilli are priority. There is also increased international appetite for processed and value-added food items such as cereal preparations, value-added makhana items, sauces and pickles. According to an Apeda official, privy to the development, animal products, including bovine meat, natural honey and dairy items such as ghee and paneer also have great potential in the global markets. Work on the blueprint is already underway. 'We are preparing a report on the export potential of commodities such as makhana, banana, mango, potato, cashew, pomegranate, cashew, cucumber, pineapple, cereal preparations, and pickles,' said Harsh Wardhan, fellow at Icrier. "A few of the reports have been submitted to Apeda, and work is in advance stages on other commodities." Drawing on secondary research and field visits, the report will suggest actionable strategies to unlock India's export potential by studying the entire value chain--from production to processing to exports--identify key challenges and evaluate the tariff and non-tariff measures. A fine example on the immense potential of Indian farm goods is the case of makhana (Euryale ferox), popularly known as gorgon nut. Makhana has emerged as a global superfood owing to its remarkable nutritional and medicinal value. India dominates global production, accounting for 90% of the supply, with Bihar alone contributing 85–90%. Despite this dominance, India's share in global makhana exports is disproportionately low. Only around 1–2% of the country's produce is exported. As the demand for plant-based, gluten-free, and functional food grows internationally, India has a significant opportunity to strengthen its position in the global makhana trade. The rise in India's agricultural exports will help improve farmer incomes, generate rural employment, and establish the country's dominance in niche, yet growing global food categories.
Time of India
2 days ago
- Business
- Time of India
Crisil upgrades Bharti Airtel's rating as financial profile, RMS improves
New Delhi: Crisil Ratings has upgraded its rating of Bharti Airtel and its holding company, Bharti Telecom Limited on the back of the second largest Indian telco's improved financial profile and continually increasing revenue market share. The ratings agency upgraded its rating on the long term bank facilities of Bharti Airtel to Crisil AAA/Stable from Crisil AA+/Positive, while reaffirming the short term rating and commercial paper at Crisil A1+. The rating upgrade factors in improvement in both business and financial risk profiles of the company during fiscal 2025 in line with the expectations of Crisil Ratings, the agency said in a statement Friday. Crisil also upgraded its rating on the non-convertible debentures (NCDs) of Bharti Telecom Limited, part of the Bharti Group to Crisil AAA/Stable, from Crisil AA+/Positive, reaffirming its Crisil A1+ rating on the commercial paper. The Airtel stock was trading 1.4% lower in afternoon trade at ₹1902.05 on the BSE Friday. Crisil reported the improvement in business risk profile is supported by the company's continually increasing revenue market share in the domestic mobile segment by ~400 basis points (bps) over fiscals 2021 to 2025 along with healthy growth in average revenue per user (ARPU) resulting in sharp growth in its operating profit and improved return metrics. In the near to medium term, Crisil Ratings expects strong operating profit with easing capex requirements to continue and is expected to contribute towards steady deleveraging. "Consolidated revenue grew 16% to ₹1,74,559 crore while earnings before interest, tax, depreciation and amortisation (Ebitda) grew 21% to ₹94,733 crore in fiscal 2025. This was largely driven by continued strong growth in the India mobile business (accounting for ~57% of consolidated Ebitda). The ARPU for the India mobile services business improved 17% in fiscal 2025 to ₹245, supported by broad-based tariff hikes of 17-19% on average taken by BAL in June 2024," Crisil said. The ratings agency added Airtel's business segments such as home broadband and enterprise have demonstrated healthy growth over the past few years, and the momentum is expected to continue in the near to medium term. The improvement in the business risk profile is also due to the better financial risk profile of the telco, led by reduction in net leverage, which improved to 2.1 times in FY25, from 2.5 times in FY24, driven by strong earnings growth. Furthermore, improved cash flow led to capex being funded through internal accrual with no reliance on external debt. The ratings agency said capex intensity, which averaged 25% over the past two fiscals, is expected to moderate over the medium terms as mass 5G networks have been established. Spectrum capex too is likely to reduce as most of the spectrum purchase was completed in FY23. "A higher-than-expected outgo for network layout or on spectrum acquisition along with any significant debt-funded acquisitions, which could have a bearing on the overall financial risk profile, will continue to remain a key monitorable," the agency said. For Airtel's holding company, Crisil said the upgraded ratings reflect the healthy market value to debt cover of Bharti Telecom and its robust financial flexibility driven by the strong reputation of its promoters, the Bharti Group. The upgraded ratings for Bharti Telecom also factor in the expected dividends from Bharti Airtel, which is sufficient to meet the annual interest obligation of the holding company. "While BTL (Bharti Telecom Ltd) is exposed to refinancing risk as there are significant repayments due in the current fiscal, however, the company has access to capital markets for funding and has an established track record of refinancing the debt at competitive rates. These strengths are partially offset by exposure to market risk," Crisil said.
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Business Standard
2 days ago
- Automotive
- Business Standard
Tyre industry to grow 7-8% in FY26, driven by replacement demand: Crisil
India's Rs 1 trillion tyre industry is expected to post a steady revenue growth of 7–8 per cent in FY26, driven largely by robust replacement demand, which accounts for nearly 50 per cent of the sector's annual sales, according to Crisil Ratings. Rising premiumisation trends are also expected to aid realisations marginally, even as original equipment manufacturer (OEM) offtake remains subdued and global trade headwinds cloud the outlook. Crisil forecasts volume growth at 5–6 per cent, similar to the last fiscal. The replacement segment is expected to grow 6–7 per cent on the back of a large vehicle base, rural recovery, and strong freight movement. OEM volumes, which contribute roughly 25 per cent, are projected to rise 3–4 per cent, buoyed by steady sales in two-wheelers and tractors, with modest gains from passenger and commercial vehicles. Exports, also contributing 25 per cent of volumes, are likely to grow 4–5 per cent, supported by demand from Europe, Africa, and Latin America. Tyre maker Ceat sees signs of optimism. 'We expect raw material prices to decline by 1–2 per cent in Q2 over Q1, largely due to softening crude oil and international rubber prices,' said Kumar Subbiah, CFO and Executive Director of Ceat. 'If demand stays stable, this could positively impact our margins. The trend looks encouraging, and we are hopeful of margin recovery.' Crisil also pointed out that operating profitability is expected to remain stable at 13–13.5 per cent, supported by steady input costs and high capacity utilisation. Input cost pressure has been easing, offering some relief to manufacturers. Natural rubber prices had surged 8–10 per cent in FY25, alongside increases in crude-linked inputs like synthetic rubber and carbon black, eroding margins by nearly 300 basis points. However, the industry faces external risks. The US, which made up 17 per cent of India's tyre export volume last fiscal (and 4–5 per cent of total industry volume), has imposed reciprocal tariffs on Indian goods, potentially hurting competitiveness. Moreover, steep US tariffs on Chinese goods could push Chinese producers to dump excess inventory in price-sensitive markets like India. Although India has a 17.57 per cent anti-dumping duty on large truck and bus radials from China, other segments remain vulnerable. 'Price competition could intensify if low-cost Chinese tyres flood the Indian market,' warned Poonam Upadhyay, Director at Crisil Ratings. 'This is particularly worrying for the already competitive replacement segment.' Despite ongoing cost pressures, the sector's financial resilience remains strong, aided by conservative balance sheets and prudent capital spending. Capex is expected to remain steady at around Rs 6,000 crore, focused on high-utilisation segments such as passenger car radials and two-wheeler tyres, automation, and backward integration. The top six tyre makers, who account for 85 per cent of industry revenue, are expected to maintain a healthy financial profile, with interest coverage improving to 8.0 times and debt-to-Ebitda ratio easing to 1.0 from 1.3 last year.
Time of India
3 days ago
- Business
- Time of India
All time high! Net annual office leasing in India may hit a record; soar to 50 million square feet
Following strong recovery post Covid-19, the commercial office sector is positioned for steady growth, supported by reduced remote working and robust GCC demand. (AI image) Grade A commercial office space leasing in India is projected to achieve a 7-9% CAGR through 2027, surpassing 50 million sq ft in financial year 2026-27, according to Crisil ratings agency. Annual supply is anticipated at 53-57 million sq ft, contributing to a 6.5-7% CAGR expansion in overall office inventory during this period. This trend will lead to improved occupancy levels and increased cash flows for commercial office developers. Credit profiles will remain stable, supported by prudent leverage, as per Crisil's analysis of 78 commercial office space developers representing approximately a quarter of India's Grade A office stock. "With healthy demand absorbing the elevated supply, the overall vacancy level for India's Grade A office market is expected to decline to 15.5-16.0% by the end of fiscal 2027. That will mark a 100 basis points (bps) improvement over fiscal 2025. While overall vacancy is expected to reduce over this period, the trend will vary across micro-markets," said Gautam Shahi, Director, Crisil Ratings according to an ET report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She's 75 and Retiring - Her Handcrafted Jewelry Is 80% OFF Design Craft Weekly Read More Undo Following strong recovery post Covid-19, the commercial office sector is positioned for steady growth, supported by reduced remote working and robust GCC demand. GCCs remain crucial for sector growth, attracted by India's skilled workforce and cost benefits, contributing 30-40% of annual commercial office space net leasing across sectors. The next two years will see net leasing driven by significant growth in BFSI and flexible workspace sectors. BFSI expansion reflects credit growth, increased assets under management and workforce expansion. Flexible workspace operators continue offering adaptable, efficient solutions. IT/ITeS sector leasing growth is expected to be moderate at 5-6%, primarily driven by GCCs, whilst domestic IT company demand remains subdued. Supply of commercial office space, which decreased to 47 million sq ft last fiscal, is expected to reach 53-55 million sq ft this fiscal as ongoing projects reach completion. Crisil forecasts steady supply at 55-57 million sq ft next fiscal, with developers adjusting plans considering higher vacancies in certain areas. Total office stock is expected to reach 920-925 million sq ft by fiscal 2027, increasing from 810 million sq ft in March 2025. Mumbai Metropolitan Region and National Capital Region, comprising one-third of commercial office inventory, are likely to see vacancy reduction of 200-250 bps, driven by BFSI, flexible workspace and IT/ITeS demand. Southern markets, representing half the office stock, should maintain stable vacancy levels despite new supply, supported by continued GCC demand. Pune may experience increased vacancies due to substantial upcoming supply potentially exceeding demand growth. "Declining vacancy levels, along with contracted rental escalations and recent interest rate cuts by the central bank, are expected to improve cash flows of commercial office players. This, along with prudent leveraging by developers, should keep their credit profiles healthy this fiscal and the next. As a result, the annual DSCR5 is expected to improve to 1.9-2.0 times this fiscal and the next from 1.7 times last fiscal," said Snehil Shukla, Associate Director, Crisil Ratings. Debt to EBITDA ratio is forecast to improve to 4.0-4.2 times by March 2027 from 4.7 times as of March 2025. However, geopolitical developments, global economic slowdown affecting GCC leasing, and potential excessive leveraging remain areas of concern.
