Latest news with #CrisilRatings


Time of India
2 days ago
- Business
- Time of India
Crisil, ICRA reaffirm credit rating, underscore confidence in business stability, says Vedanta
Vedanta on Friday said rating agencies Crisil Ratings and ICRA have reaffirmed their credit ratings, underscoring continued confidence in the mining major's overall business stability . In a regulatory filing, Vedanta said ICRA Ltd has reaffirmed the company's credit ratings, underscoring continued confidence in Vedanta's overall business stability and healthy financial performance, healthy financial performance and strong adherence to corporate governance. Explore courses from Top Institutes in Select a Course Category Public Policy MCA Artificial Intelligence Data Science Healthcare Degree healthcare MBA Design Thinking Operations Management PGDM Product Management Others Cybersecurity Project Management Data Analytics Technology Digital Marketing others CXO Leadership Finance Data Science Management Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details Vedanta said that ICRA has reaffirmed its long-term rating at AA. In another filing Vedanta said, "Crisil Ratings Ltd ... has reaffirmed the company's credit ratings, underscoring continued confidence in Vedanta's overall business stability and healthy financial performance." The rating agency reaffirmed its long-term ratings of Crisil AAA for Hindustan Zinc Ltd and Crisil AA for Vedanta. Live Events Crisil Ratings said that it has taken note of the recent short-seller report and, after independent evaluation, reaffirmed Vedanta's ratings, according to the regulatory filing. "CRISIL has its credit ratings outstanding on multiple entities of the Vedanta group, and all have been reaffirmed. Further, based on independent feedback, CRISIL understands that currently there has been no adverse reaction from any lender or investor," it said. The filing further said that ICRA draws comfort from the group's stated commitment to ongoing debt reduction. "The leverage ratio (Net Debt/OPBDITA), including Vedanta Resources Limited's debt, improved to 2.5x in FY 2025, down from 3.2x in FY 2024. Further, Vedanta's healthy profitability, particularly in its aluminium and zinc operations, continues to strengthen its credit profile. Additionally, the recent refinancing at VRL has effectively smoothened the debt maturity profile and is expected to reduce finance costs from FY 2026 onwards," the filing said. US short seller Viceroy Research had last week released a report charging billionaire Anil Agarwal's mining conglomerate to be "financially unsustainable" and posing a severe risk to creditors, allegations which the group called "selective misinformation and baseless" aimed at discrediting the group. Responding to the report, Vedanta in a statement had said, "The report is a malicious combination of selective misinformation and baseless allegations to discredit the Group". "It has been issued without making any attempt to contact us with the sole objective of creating false propaganda. It only contains a compilation of various information, which is already in the public domain, but the authors have tried to sensationalise the context to profiteer from market reaction," it had said. PTI SID MR


India.com
2 days ago
- Automotive
- India.com
India's Tyre Sector Poised To Clock 8% Revenue Growth In FY26: Report
Mumbai: India's tyre sector will see steady revenue growth of 7-8 per cent during the current financial year, driven by replacement demand that accounts for half of annual sales, even as offtake by original equipment manufacturers (OEMs) will likely be subdued and exports steady, according to a Crisil Ratings report released on Friday. Rising premiumisation is expected to give a slight leg-up to realisations. However, escalating trade tensions and the risk of dumping by Chinese producers diverting inventories because of US tariffs could pose challenges, the report states. Operating profitability is likely to remain steady at 13-13.5 per cent, supported by stable input costs and healthy capacity utilisation. This, along with strong accruals, lean balance sheets and calibrated capital spending, should help sustain the sector's stable credit outlook, according to the report. The report is based on an analysis of India's top six tyre makers, catering to all vehicle segments and accounting for 85 per cent of the sector's approximately Rs one lakh crore revenue. Domestic demand remains the mainstay, propelling around 75 per cent of total volume, with exports making up the rest. Crisil Ratings senior director Anuj Sethi said, 'Volume growth is seen at 5-6 per cent this fiscal, mirroring last fiscal. The replacement segment, accounting for around 50 per cent of volume, is set to grow 6-7 per cent on the back of a large vehicle base, strong freight movement and rural recovery. OEM volume (25 per cent) will likely rise 3-4 per cent, supported by steady two-wheeler and tractor sales, and modest growth in passenger vehicles and commercial vehicles. Export volume (25 per cent) is expected to grow 4-5 per cent, supported by demand from Europe, Africa and Latin America.' The export momentum, however, comes with risks. The US, accounting for around 17 per cent of India's tyre export volume last fiscal, and 4-5 per cent of overall industry volume, has imposed reciprocal tariffs on several Indian goods, potentially eroding price competitiveness. And steep US tariffs limit China's access to that market, raising the risk of excess supply being diverted into price-sensitive markets such as India, the report further states. To curb cheap imports, India imposes anti-dumping and countervailing duties, including a 17.57 per cent levy, on large truck and bus radials from China. However, a broader influx of low-cost tyres across other segments could pressure domestic realisations without timely safeguards. Besides, stiff competition in the replacement market will keep operating profitability rangebound at 13.0-13.5 per cent this fiscal. With nearly half of the raw material imported, the sector is exposed to global prices and fluctuations in foreign exchange rates. In fiscal 2025, natural rubber prices surged 8-10 per cent owing to supply disruptions, and prices of crude-linked inputs such as synthetic rubber and carbon black rose 10-12 per cent. This led to margin erosion by around 300 basis points, given the limited cost pass-through in the OEM and replacement segments.


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.
&w=3840&q=100)

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
2 days ago
- Business
- Time of India
Crisil upgrades Bharti Airtel to AAA on stronger financial profile
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 steadily 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+. Explore courses from Top Institutes in Select a Course Category Cybersecurity Data Analytics Artificial Intelligence Others PGDM Data Science Digital Marketing Leadership Degree Public Policy others healthcare MBA Product Management Management Project Management Design Thinking Data Science MCA Operations Management Healthcare Finance CXO Technology Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Weather Tomorrow search Click Here Undo 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, while reaffirming its Crisil A1+ rating on the commercial paper. The Airtel stock was trading 1.4% lower in afternoon trade at ₹1,902.05 on the BSE Friday. Live Events Crisil reported that the improvement in the business risk profile is supported by the company's continually increasing revenue market share in the domestic mobile segment—up approximately 400 basis points over fiscals 2021 to 2025—along with healthy growth in average revenue per user (ARPU), resulting in sharp growth in operating profit and improved return metrics. In the near to medium term, Crisil Ratings expects strong operating profit, with easing capex requirements likely to contribute to 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 that 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 attributed to the better financial risk profile of the telco, led by a 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 allowed capex to be funded through internal accruals, 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 term as mass 5G networks have already been established. Spectrum capex is also likely to reduce, as most of the spectrum purchases were completed in FY23. "A higher-than-expected outgo for network rollout or spectrum acquisition, along with any significant debt-funded acquisitions that could affect 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 are sufficient to meet the annual interest obligations of the holding company. "While BTL (Bharti Telecom Ltd) is exposed to refinancing risk, as there are significant repayments due in the current fiscal, the company has access to capital markets for funding and has an established track record of refinancing its debt at competitive rates. These strengths are partially offset by exposure to market risk," Crisil said.