Crisil stress test: Indian firms resilient amid West Asia conflict
Indian companies are holding up surprisingly well despite the ongoing conflict in West Asia.
According to a Crisil Ratings stress test, strong finances, steady local demand, and government spending are helping businesses handle rising fuel costs and supply chain hiccups.
Crisil: only 8 sectors materially impacted
The government's ECLGS 5.0 scheme is giving MSMEs a much-needed boost by easing credit risks right now.
Still, Crisil expects corporate operating profitability to drop by 200 basis points this fiscal; ceramics will be the hardest hit, and airlines will also feel it thanks to airspace closures, higher fuel cost, and rupee depreciation.
On the bright side, some export sectors like pharma and garments may benefit from the rupee's dip, while others (like edible oils) remain under pressure.
Overall, Crisil foresees the credit quality of only eight sectors being materially impacted.