Latest news with #CrisilRatings
Business Standard
3 days ago
- Business
- Business Standard
Crisil Ratings assigns 'A1+' rating to commercial paper of Muthoot Microfin
Muthoot Microfin (MML) said that Crisil Ratings has assigned its 'Crisil A1+' rating to the commercial paper of the company. The rating on the long-term bank loan facilities and non convertible debentures has been reaffirmed at 'Crisil A+/Stable'. Crisil Ratings stated that the ratings continue to factor in expectation of continued support from the parent, Muthoot Fincorp (MFL). It also takes into consideration MMLs adequate capital position and its diversified resource profile. These strengths are partially offset by geographical concentration in the loan portfolio, moderate asset quality and susceptibility of the microfinance sector to regulatory and legislative changes. MMLs portfolio quality has been affected in line with several issues faced by the sector over the last 3-4 quarters. However, overall asset quality (in terms of collections) has started showing some stability, particularly during the fourth quarter of fiscal 2025. Crisil Ratings believes that despite some early signs of improvement in collections, the companys ability to show substantial improvement in portfolio quality will be closely monitored. The company remained well-capitalised, as reflected by networth of Rs 2,632 crore and gearing of 3.0 times as on 31 March 2025 (Rs 2,804 crore and 3.0 times, respectively, as on 31 March 2024). Capital position of the company also benefits from its strong parentage, which enables it to raise funds in a timely manner. Muthoot Microfin (MML), a part of Muthoot Pappachan Group (MPG), provides microfinance loans to women. MML had AUM of Rs 12,356 crore and networth of Rs 2,632 crore as on 31 March 2025. Operations of the microfinance division are spread across Kerala, Tamil Nadu, Puducherry, Karnataka, Maharashtra, Gujarat, Haryana, Rajasthan, Uttarakhand, Madhya Pradesh, Uttar Pradesh, Odisha, West Bengal, Punjab, Chhattisgarh, Jharkhand, Bihar, Himachal Pradesh and Telangana. The scrip rose 0.83% to trade at Rs 127.4 on the BSE today.
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Business Standard
3 days ago
- Business
- Business Standard
Shrimp export volume growth to stay flat in FY26 due to US tariffs: Crisil
Indian shrimp exporters are expected to register a marginal 2–3 per cent rise in revenues in FY26, driven by higher prices and currency gains, according to a Crisil Ratings report. However, export volumes are likely to remain flat due to anticipated US tariff hikes and weak demand in key markets amid sluggish economic growth. Margins under pressure despite value addition efforts The Crisil report notes that operating margins will remain under strain, as the increased tariff burden will be passed on only gradually and partially. While exporters are exploring new markets and enhancing value-added products, these initiatives may take time to improve profitability. The report highlights that extended working capital cycles will increase exporters' dependence on external borrowings, impacting credit profiles. Nevertheless, capital structures are expected to remain stable. Market share and demand outlook Crisil's analysis of 63 shrimp exporters, representing around 55 per cent of the industry's revenue, supports this outlook. Global shrimp demand has stayed steady at roughly 4 million tonnes over recent years and is expected to remain subdued this fiscal year due to weak economic growth in major importing regions such as the US, EU and China. India holds about a fifth of the global shrimp market, with domestic production forecast to stay flat at 1.2 million tonnes. Low global prices have discouraged farming expansion this year. US tariffs and competition from South America India exports nearly 48 per cent of its shrimp to the US. Although the US has temporarily paused reciprocal tariffs, these reliefs primarily benefit South American exporters such as Ecuador, the world's largest shrimp supplier. Indian exporters are expected to face stronger competition in low-value-added segments such as raw, frozen and peeled frozen shrimp, which offer lower profitability. Himank Sharma, director at Crisil Ratings, said, 'Last fiscal was challenging for Indian shrimp exporters due to price pressures and US countervailing duties. With the US imposing reciprocal tariffs this year and sluggish demand from other key markets, revenue growth will likely remain in low single digits despite improved realisations.' Competitive edge in value-added products Low-value-added shrimp exports are expected to face rising challenges. However, Indian exporters maintain a competitive advantage in value-added products compared to Asian peers such as China, Vietnam, Thailand and Indonesia, who control over a third of the US market despite higher tariffs. Value-added products currently account for about 10 per cent of India's shrimp exports, but this share could rise to 15–17 per cent over the next 2–3 years, benefiting from tariff advantages, according to the report. Despite growth in value-added segments, limited volume expansion and tariff pressures are expected to reduce profitability by 50–60 basis points this fiscal year, bringing margins down to around 6.5–6.7 per cent, after a 70 basis point decline last year. Profitability and credit profile outlook Working capital cycles may lengthen as exporters face higher inventories and slower collections amid weak demand. This will lead to increased working capital borrowing alongside long-term debt for capital expenditure on value-added products, while capacity utilisation remains moderate. Nagarjun Alaparthi, associate director at Crisil Ratings, said, 'Debt levels will rise but capital structures will stay healthy. However, lower profits and higher interest costs will reduce interest coverage ratios. Gearing is expected to remain comfortable at 0.5 times by March 2026, slightly up from 0.46 times in March 2025, while interest coverage may ease to around 4.3 times in fiscal 2026 from 4.8 times last year, reflecting margin pressure.' The final impact of reciprocal tariffs, revisions to US anti-dumping and countervailing duties, their effects on demand, and forex fluctuations remain critical factors to monitor for the sector's outlook.
Hans India
3 days ago
- Business
- Hans India
Indian shrimp exporters to see 2-3 pc uptick in revenues this fiscal
New Delhi: Indian shrimp exporters will see a marginal 2-3 per cent uptick in revenues this fiscal (FY26) on improved realisations stemming from rising prices and currency gains, a Crisil report said on Friday. Though the low-value-added shrimp exports will likely see increased pressures, Indian exporters have a competitive advantage in the value-added segment over other Asian peers, such as China, Vietnam, Thailand and Indonesia, which face higher tariffs but enjoy over one-third market share in the US. However, export volumes will be flat because of higher tariffs expected to be imposed by the US and subdued demand in key importer nations as sluggish economic growth affects disposable incomes. India exports close to 48 per cent of its produce to the US. The reciprocal tariffs announced by the US, though paused for the time being, will benefit south American exporters such as Ecuador, the largest shrimp exporter in the world. Indian exporters will face higher competition from them in the raw frozen and peeled frozen categories, which have low value addition and are less remunerative. According to the report, operating margins will be under pressure because the tariff burden will be passed on only partially and gradually, as seen in the past, even as exporters scout for other markets and improve offerings through value addition. Credit profiles will continue to face challenges as elongated working capital cycles induce further recourse to credit lines that, in turn, would moderate debt protection metrics. Capital structures are expected to remain comfortable, however, the report mentioned. 'Last fiscal, the waters turned choppy for Indian shrimp exporters as prices and competition increased after a countervailing duty of 5.77 per cent was slapped by the US,' said Himank Sharma, Director, Crisil Ratings. This fiscal, with the US imposing reciprocal tariffs -- even as other major markets such as the European Union and China see sluggish economic activity -- exporters will likely see flattish demand. 'But as realisations tick up, overall growth in revenues should be in low single digit this fiscal,' Sharma added. Global shrimp demand has flatlined at 4 million tonne (MT) over the past few fiscals and will likely remain subdued this fiscal, too. Indian exporters have around a fifth of the global market share as of now, while domestic production is seen flat at 1.2 MT due to non-remunerative global prices impacting shrimp culture and growth, this fiscal. Nagarjun Alaparthi, Associate Director, Crisil Ratings, said that 'Despite rising debt, the capital structures of shrimp exporters will remain healthy'.
India.com
23-05-2025
- Business
- India.com
Bad news for Ratan Tata's Tata Group as Tata Play loses Rs 5100000000 due to...
(File) In a major setback for Tata Group-owned Tata Play, the direct-to-home (DTH) television service has suffered a consolidated net loss of Rs 510 crore in 2024-25, a 44 percent increase from previous year's Rs 354 crore, primarily due to its dwindling subscriber base amid mounting competition from rival DTH service providers and the surge in popularity of OTT platforms. Tata Play is jointly owned by Tata Sons– the holding company of the Tata Group– which owns a 70 percent controlling stake in the DTH service, and Walt Disney, that has a 30 percent holding. According to a report by The Economic Times, Tata Play also registered a 5.46% decline in total revenue to Rs 4,082 crore from Rs 4,305 crore. As per Crisil ratings, Tata Play's loss in revenue is attributed to a dwindling subscriber base, which has shrunk to 18 million from its peak of 23 million, amid stiff competition from government-owned Prasar Bharti's DD Free Dish, and surging popularity of OTT platforms. Crisil Ratings has predicted that Tata Play's revenue is expected to remain flat in 2025-26, following the decline in the previous fiscal. In 2022-23, Tata Play had reduced its total debt to Rs 3,262 crore from Rs 3,679 crore in 2021-22, but it temporarily surged to Rs 4,074 crore in 2023- 24, primarily owing to a Rs 1,200 crore increase in lease liabilities linked to new GSAT satellite transponders, according to the ET report. Tata Play began transmission via the the GSAT-24 satellite in 2024, enabling the DTH service to carry nearly 50% more channels. Earlier, Tata Play was in discussion for merger with telecom giant Bharti Airtel's DTH arm, Bharti Telemedia, but the talks fell apart, reportedly due to the lack of a 'satisfactory resolution'. According to Crisil Ratings, despite declining revenues, Tata Play's broadband business and its OTT platform, Tata Play Binge, is likely to partially offset the impact of the revenue loss. In 2024, Tata Sons acquire an additional 10% stake in Tata Play from Temasek for $100 million at a market valuation of $1 billion, significantly lower than its peak $3 billion valuation before the Covid-19 pandemic.
Time of India
23-05-2025
- Business
- Time of India
Tata Play net loss surges 44% to ₹510 crore in FY25
Tata Play , the direct-to-home (DTH) television service jointly owned by Tata Sons (70%) and Walt Disney (30%), reported a wider consolidated net loss of ₹510 crore for 2024-25, a 44% increase from ₹354 crore in the previous year. The company also recorded a 5.46% decline in total revenue to ₹4,082 crore from ₹4,305 crore. It had been in talks with Bharti Airtel to merge with the latter's DTH arm, Bharti Telemedia. However, the merger discussions were terminated owing to the lack of a 'satisfactory resolution'. Crisil Ratings, which reaffirmed its ratings on Tata Play's ₹8,000 crore bank facilities, said revenue is expected to remain flat in 2025-26, following the decline in the previous fiscal. The drop is primarily attributed to a shrinking subscriber base, which has fallen to 18 million from a peak of 23 million. The decline in subscribers is driven by mounting competition from DD Free Dish, operated by Prasar Bharati, and the increasing popularity of digital entertainment platforms, particularly over-the-top (OTT) services. However, Media Partners Asia had earlier reported that the pay TV industry gained 3.5 million net paid subscribers in 2025 amid cricket content moving behind paywalls even as competition from DD Free Dish and OTT continues unabated. Crisil Ratings noted that while DTH revenues have declined, the impact is expected to be partially offset by growing earnings from Tata Play's broadband business and its OTT platform, Tata Play Binge. Last year, Tata Sons acquired a 10% stake in Tata Play from Temasek for $100 million, valuing the DTH firm at $1 billion, down significantly from its pre-Covid-19 peak valuation of $3 billion. Meanwhile, Tata Play Broadband (TPBB) narrowed its net loss by 6.48% to ₹101 crore, down from ₹108 crore. Revenue rose more than 16% to ₹383 crore from ₹329 crore. Crisil Ratings reaffirmed its ratings on TPBB's ₹700 crore bank facilities. Tata Play invested ₹455 crore in TPBB in 2021-22, ₹209 crore in 2022-23 and ₹185 crore in 2023-24. While TPBB's net worth stood at around ₹450 crore in 2023-24, it was largely supported by these capital infusions. With future investments expected to decline, the net worth may shrink. Tata Play reduced its adjusted net debt to ₹3,262 crore in 2022-23 from ₹3,679 crore in 2021-22. However, it temporarily rose to ₹4,074 crore in 2023-24, largely owing to a ₹1,200 crore increase in lease liabilities linked to new GSAT satellite transponders. In August 2023, the company began transmission via the GSAT-24 satellite, enabling it to carry 50% more channels. For 2024-25, total debt remained stable at ₹3,584 crore, or ₹1,798 crore excluding lease liabilities. Crisil Ratings expects the majority of upcoming capital expenditure to be directed toward the DTH business, with spending expected to be managed prudently. Despite operational improvements, Tata Play's financial position remains burdened by a negative net worth, owing to accumulated losses and provisions related to a potential liability for disputed licence fees. The issue stems from a demand raised by the information and broadcasting ministry in 2019-20. While the matter remains under judicial review, the ministry granted all DTH operators a provisional 20-year licence with effect from April 1, 2021. Tata Play has provisioned around ₹2,002 crore for this liability and has recognised an additional ₹2,280 crore as a contingent liability as of March 31, 2024, with no immediate payout expected.
