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Times of Oman
04-08-2025
- Business
- Times of Oman
Indian polished diamond exports to US face fresh hurdles amid tariffs, say Crisil officials
New Delhi: Exports of Indian natural polished diamonds to the US - contributing 35 per cent of total exports in fiscal 2025 - is set to face further headwinds following the tariffs and penalty announced by the US, said Crisil Ratings officials. An official of the ratings agency noted that the demand for natural diamonds in the US market has slowed already. "Added to this, reduced offtake by retailers post announcement of 10 per cent tariff on Indian exports in April 2025, brought down the share of the US in polished diamond exports to 24 per cent in the first quarter of this fiscal from 37 per cent for the same period last fiscal," said Rahul Guha, Senior Director at Crisil Ratings. "In the milieu, the revenue of Indian diamond polishers can decrease a further 20-25 per cent this fiscal to USD 10-11 billion," Guha added. Himank Sharma, Director, Crisil Ratings, said, "Natural diamond polishers, traditionally operating at thin margins of 4-5 per cent, will have limited ability to absorb the tariff-induced price rise. As a result, miners and retailers may need to step in to absorb some of the price shocks." In fiscal 2025, the export volumes of natural diamonds remained constrained by lower demand from China and competition from LGD in the US. Although polishers pushed sales in the fourth quarter to avoid tariffs, and price erosion was limited, revenues from natural diamond exports fell 17 per cent to USD 13.3 billion. India is the top global exporter of diamonds and the largest consumer of gold. Stakeholders of the Indian Gems and Jewellery sector expressed deep concern, warning of short-term disruptions, potential job losses, and rising prices for American consumers following the US announcement of a 25 per cent tariff on India, which was announced by US President Donald Trump on July 30. Trump also said India will face additional penalties for purchasing oil from Russia. However, business leaders also pointed to India's expanding trade ties, including recent Free Trade Agreements (FTAs) with the UK, Australia, and the UAE, as a buffer against the fallout, suggesting the long-term impact may hurt the US more than India.
Economic Times
30-07-2025
- Business
- Economic Times
PVC pipes, fittings manufacturing companies to see recovery this fiscal: Crisil Ratings
Agencies Representative image After a flattish revenue growth last financial year, Polyvinyl chloride (PVC) pipes and fittings manufacturing companies will see a recovery this fiscal led by robust demand from end-user segments and a more stable price environment, according to Crisil Ratings. Improved profitability and easing inventory levels will also reduce their working capital requirements and afford room to expand capacities without stressing balance sheets, the statement said. "Demand for PVC pipes and fittings has remained robust in recent times driven by government schemes such as Jal Jeevan Mission and Pradhan Mantri Awas Yojna, which focus on the water supply, sanitation and housing segments. "What has changed is the government more than doubled budgetary allocation this fiscal, on-year, for these schemes, which can drive up the requirement of PVC pipes and fittings even more," Crisil Ratings Director Himank Sharma said. This will lead to reduction in manufacturers' high-cost inventory as dealers begin restocking channels and partly wipe out a 130 basis points' decline in operating margin last fiscal. Demand from irrigation and water supply projects, contributing close to three-fourths of the sectoral revenues, is seen remaining strong, given the government's push in these sectors. Replacement and new demand from the real estate sector will also contribute, though moderate as compared with the past few fiscals, as fresh project launches are expected to reduce. PTI
Time of India
24-07-2025
- Business
- Time of India
PVC pipes, fittings manufacturing companies to see recovery this fiscal: Crisil Ratings
After a flattish revenue growth last financial year, Polyvinyl chloride (PVC) pipes and fittings manufacturing companies will see a recovery this fiscal led by robust demand from end-user segments and a more stable price environment, according to Crisil Ratings . Improved profitability and easing inventory levels will also reduce their working capital requirements and afford room to expand capacities without stressing balance sheets, the statement said. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare Data Science Design Thinking Project Management Leadership others healthcare MCA Data Analytics Cybersecurity Public Policy Finance PGDM CXO Technology Digital Marketing Data Science Operations Management Artificial Intelligence Product Management Others Degree MBA Management Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details "Demand for PVC pipes and fittings has remained robust in recent times driven by government schemes such as Jal Jeevan Mission and Pradhan Mantri Awas Yojna, which focus on the water supply , sanitation and housing segments. "What has changed is the government more than doubled budgetary allocation this fiscal, on-year, for these schemes, which can drive up the requirement of PVC pipes and fittings even more," Crisil Ratings Director Himank Sharma said. This will lead to reduction in manufacturers' high-cost inventory as dealers begin restocking channels and partly wipe out a 130 basis points' decline in operating margin last fiscal. Live Events Demand from irrigation and water supply projects , contributing close to three-fourths of the sectoral revenues, is seen remaining strong, given the government's push in these sectors. Replacement and new demand from the real estate sector will also contribute, though moderate as compared with the past few fiscals, as fresh project launches are expected to reduce. PTI
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Business Standard
30-05-2025
- 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
30-05-2025
- 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'.
