Competition from large players, exposure to business cycles, and high working-capital intensity are key risks in the EPC segment
With the working capital cycle stretched, financially weaker hospitals may have to resort to short-term loans to stay afloat.
A moderate demand revival is expected in the second half of this fiscal, led by improving auto sales and pick-up in construction activity.
Small and medium enterprises (SMEs), which make up a third of the sector, have been badly hit.
The sector is expected to contract by 35-40 per cent in value terms in FY21, as both domestic and export demand get impacted by the Covid-19 pandemic
Shipbreaking volumes are expected to remain under pressure in the current fiscal year too
Exports constitute more than 85 per cent of the industry's revenue, and due to Covid-19 induced slowdown around the world, they are at risk
CRISIL Research expects their revenue to decline 30-35 per cent in FY 2021
Exports, which account for 55 per cent of the pie, are likely to decline by 3 per cent due to lower demand from key importing nations such as the US, Brazil and France
The extended lockdown to stem the spread of the Covid-19 pandemic has disrupted supply chains and hampered factory operations.
While demand for the home furnishings segment (SME share is 70-80 per cent of Rs 700 billion) is expected to decline as well, we expect the segment to pick up sooner than garments
3.5 trn Atmanirbhar Bharat package for SMEs can increase credit to MSMEs by 18-19% which can address the short-term liquidity crunch. Here's a closer look at the measures announced, and their impact
CRISIL's interactions show that most players, even SMEs, have managed to reach students amid the lockdown by switching to online channels.
Construction was gathering pace after a protracted monsoon when the pandemic halted all activity
Retail milk prices rose by 3-4 per cent during April-December 2019
The benefit would be available to MSME loans that were in default but "standard" as on January 1, 2019
An evaluation of 13,000 MSMEs using the CRISIL Quantix database shows that working capital comprises over half of their need for debt
In kharif 2019, sowing was delayed due to late arrival of the south-west monsoon
Over the past three years, the real estate industry has been affected by regulatory changes such as the Goods and Services Tax, Real Estate Regulatory Act, and the thrust on affordable housing
This is mainly due to lower investments in rural roads via the Pradhan Mantri Gram Sadak Yojana (PMGSY) and moderation in awarding by the National Highways Authority of India