Latest news with #CRISILRatings
The Print
a day ago
- Business
- The Print
Impact of Middle East conflict on India Inc so far is limited: CRISIL Ratings
The uncertainties have impacted global crude markets, with the Brent crude hovering in the range of USD73 to USD76 per barrel over the past one week. However, if the uncertainties aggravate, some sectors might feel the impact, the report said. Kolkata, Jun 20 (PTI) CRISIL Ratings in its latest report said that the ongoing conflict in the Middle East so far did not have any significant impact on global trade of Indian corporates. During April and May, the Brent crude was hovering around USD 65 per barrel. Any escalation of the tensions could result in further spike in oil prices, the report said, adding that this will benefit upstream oil companies and margins for the downstream refiners will get squeezed, according to the report. It said India's direct trade with Israel and Iran, the two countries engaged in the conflict, is minuscule at less than one per cent of total trade. While India's major export to Iran is basmati rice, trade with Israel is more diversified, the report added. Any escalation of the uncertainties in the Middle East has the potential to disrupt energy supply chains. Some of the other sectors which might feel the impact are speciality chemicals, paint, aviation and the tyre sectors. PTI dc NN This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
a day ago
- Business
- Time of India
Middle-East trade: India Inc faces limited impact from Iran-Israel conflict so far, says CRISIL
AI Image The ongoing conflict in the Middle East has so far had a limited impact on Indian companies' global trade exposure, but any escalation could pose risks to key sectors, CRISIL Ratings said in a report. While global crude prices have remained volatile amid the tensions between Israel and Iran, India's direct trade with both countries is under 1% of total foreign trade, the report noted. Brent crude prices have risen from around $65 per barrel in April–May to between $73 and $76 in the past week. 'The immediate fallout on India Inc's trade remains modest, given the small scale of direct commercial links,' the report said as quoted PTI. It also warned that if geopolitical risks intensify, the effect could spill over into energy markets and industry supply chains. According to CRISIL, upstream oil producers may benefit from higher prices, but refiners could see their margins squeezed. Sectors like aviation, speciality chemicals, paints and tyres may also feel the pinch if crude prices climb further or logistics are disrupted. India's exports to Iran are dominated by basmati rice, while trade with Israel spans more categories, the report added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)
Business Standard
10-06-2025
- Automotive
- Business Standard
Auto sector faces slowdown due to rare earth magnet shortage: Crisil
India's automotive industry is staring at potential slowdown due to shortage of rare earth magnets, a critical component for electric vehicles (EVs) and hybrids, ratings agency CRISIL has said. China's recently imposed export restrictions and prolonged shipment delays are disrupting the supply chain, which could impact production and the sector's growth trajectory. Rare earth magnets are integral to the permanent magnet synchronous motors (PMSMs) utilised in EVs, valued for their high torque, energy efficiency, and compact design. Hybrids also rely on these magnets for efficient propulsion. In internal combustion engine (ICE) vehicles, their use is primarily confined to electric power steering and other motorised systems. Anuj Sethi, Senior Director at CRISIL Ratings, said, 'The supply squeeze coincides with the auto sector's preparations for aggressive EV rollouts. Over a dozen new electric models are scheduled for launch, primarily on PMSM platforms.' He added, 'While most automakers currently possess 4-6 weeks of inventory, sustained delays could begin to affect vehicle production, with EV models potentially facing deferrals or rescheduling from July 2025. A broader impact on two-wheelers and ICE passenger vehicles may occur if supply bottlenecks persist for an extended period.' The Chinese wall In April 2025, China, the primary global exporter of rare earth magnets, implemented new export restrictions on seven rare earth elements and finished magnets. This revised framework necessitates export licenses, demanding detailed end-use disclosures and client declarations, including assurances that the products will not be used for defence or re-exported to the US. The clearance process now takes a minimum of 45 days, causing significant approval delays and exacerbating global supply chain tightness. India, which imported over 80 per cent of its approximately 540 tonnes of magnets from China in the last financial year, is experiencing the effects. By the end of May 2025, while the Indian government endorsed nearly 30 import requests from domestic companies, Chinese authorities had not approved any, resulting in no shipments reaching India. Poonam Upadhyay, director at CRISIL Ratings, said, 'The shortage of rare earth magnets is compelling automakers to re-evaluate supply-chain strategies. Despite contributing less than 5 per cent of a vehicle's cost, these magnets are essential for EV motors and electric steering systems.' She noted that automakers are engaging with alternative suppliers in countries such as Vietnam, Indonesia, Japan, Australia, and the US, while also optimising existing inventories. 'With applications across EVs and ICE vehicles, a prolonged supply squeeze could disrupt production of PVs and 2Ws, making this low-cost component a potential high-impact bottleneck for the sector. In a constrained supply scenario, magnets may also be diverted to ICE models, which require fewer units, potentially impacting EV growth,' Upadhyay explained. During the pandemic, rare earth magnet supplies remained stable, unlike semiconductors. This led to a reliance on just-in-time inventory without the establishment of strategic buffers. Unlike semiconductors, which have a globally diversified supply base, over 90 per cent of rare earth magnet processing is concentrated in China, offering limited short-term alternatives. The Indian remedy In response to this risk, the Indian government and automakers are taking action on two fronts. Short-term efforts focus on building strategic inventories, securing alternative suppliers, and accelerating domestic assembly under Production Linked Incentive schemes. Long-term objectives involve fast-tracking rare earth exploration, establishing local production capacity, and investing in recycling infrastructure to reduce import dependency. Diversification of supply sources is an ongoing effort, aligning with policy initiatives. The pace of China's export approvals for these magnets remains an immediate concern for automotive players. Domestic passenger vehicle volumes are projected to increase by 2-4 per cent in the financial year 2026, with electric PVs potentially rising by 35-40 per cent from a low base. Electric two-wheelers could see approximately 27 per cent growth, exceeding the overall 2W segment's 8-10 per cent growth. However, continued supply tightness could temper this momentum, particularly in the EV segment.
New Indian Express
03-06-2025
- Business
- New Indian Express
Indian dairy firms to see 11–13% revenue growth this fiscal: CRISIL
CHENNAI: India's dairy industry is poised for robust growth in FY 2025, driven by sustained demand, an increasing share of value-added products (VAP), and favourable input conditions. According to CRISIL Ratings, dairy companies are expected to witness revenue growth of 11–13% this fiscal, outpacing the ~10% growth recorded in the previous year. This expansion is supported by improved product mix, rising consumer demand for protein-rich and nutritious products, and higher retail prices. Key Drivers: Strong consumption patterns, increasing retail milk prices, and accelerated growth in the VAP segment, including cheese, yogurt, paneer, and flavored milk are considered to be the key factors that will drive the growth for the industry. Continued expansion in organised dairy retail and cold-chain infrastructure could also push the growth for the key players. Profitability Trends Operating margin for the companies expected to improve by 20–30 basis points (bps), reaching approximately 5.3%. This is mainly supported by improved product realisations, limited increase in procurement prices (2–3%), thanks to healthy milk supply, and rising share of high-margin VAP in the product portfolio. Stable fodder prices and productivity gains from widespread adoption of artificial insemination will also boost the profitability. Value-Added Products (VAP) Outlook Crisil expect the growth in the value added product segment at 16–18% in FY 2025. The share in product mix is expected to rise to about 45%, up from 40% two years ago. "The VAP segment is expected to clock a strong 16–18% growth this fiscal and an improved product mix, healthy volumes and rising retail prices will be the key growth drivers in this segment, ' says Shounak Chakravarty, Director, Crisil Ratings The other important growth drivers for the Indian diary sector include shifting consumer preferences, rising nutritional awareness, and increasing demand for protein-rich diets. Capital Expenditure (Capex) According to Rucha Narkar, Associate Director, Crisil Ratings, the sector's capex growth is projected to increase by about 10%, reaching approximately Rs 3,400 crore this fiscal. Over 60% of this will be allocated towards expanding VAP capacity and the remainder for enhancing liquid milk processing and supply-chain infrastructure. Despite the capex increase, credit profiles remain stable due to strong cash flows and balance sheets. ' The VAP segment will account for more than 60% of the overall capex — a trend seen over the past three fiscals,' says Narkar. Credit Profile & Financial Metrics Interest coverage ratio in the dairy sector is expected to remain strong at more than 8 times, estimates Crisil. While, the net cash accruals to repayment obligation is estimated at about 2.6 times (vs. 2.8 times last fiscal). These figures reflect a healthy balance sheet condition, with sufficient headroom to absorb higher capex without straining liquidity, expects Crisil. Risks and Watch Factors However the industry is not free from risk. A normal and timely monsoon remains critical to maintain fodder availability and milk productivity, and timely commissioning of planned expansions is essential to meet rising demand and sustain profitability margins, warns Crisil.
Business Standard
14-05-2025
- Business
- Business Standard
Nuvoco Vistas Corporation receives credit ratings for commercial paper
Nuvoco Vistas Corporation announced that India Ratings and Research and CRISIL Ratings have assigned rating of IND A1+ and Crisil A1+, respectively, for the Commercial Paper of the Company for an aggregate amount of Rs.1700 crore (enhanced from Rs.500 crore).The Rating for the other borrowings of the Company remain unchanged. Powered by Capital Market - Live News
