MSMEs with borrowings of under Rs.1 mln yet to fully recover: SIDBI-TransUnion CIBIL study

NPAs among smaller enterprises lower as compared to bigger ones

by Nidhi Bhati

Micro, small & medium enterprises (MSMEs) with exposures less than Rs.1 million are yet to recover from the disruptions caused by demonetisation and GST implementation, observed SIDBI in its joint report with TransUnion CIBIL titled ‘MSME Pulse’. The key findings of the study reveal that only five million of the over 50 million MSMEs have accessed formal finance system for credit. There has been a significant increase in the new borrowers entering the formal credit sector which has accelerated from 270,000 during January-June 2016 to 400,000 in July-December 2017, indicating fresh investments being made. On the non-performing assets (NPAs), the report said that while impaired assets remained range bound from eight per cent to 11 per cent in the MSME segment during the last two years, the NPA rate of large corporates has increased significantly from 7.9 per cent to 16.9 per cent during the same period.

References
1. https://economictimes.indiatimes.com/small-biz/sme-sector/sidbi-and-transunion-cibil-launch-msme-pulse/articleshow/63269240.cms
2. http://www.business-standard.com/article/economy-policy/small-businesses-yet-to-recover-from-demonetisation-gst-impact-report-118031200786_1.html
3. https://www.thehindubusinessline.com/money-and-banking/july-dec-2017-saw-surge-in-msmes-seeking-credit-for-first-time/article23163335.ece
4. https://www.transunioncibil.com/resources/tucibil/doc/insights/reports/report-msme-pulse.pdf
CMIE STATISTICS
Unemployment Rate
Per cent
5.9 -0.1
Consumer Sentiments Index
Base September-December 2015
96.0 +0.2
Consumer Expectations Index
Base September-December 2015
96.5 +0.3
Current Economic Conditions Index
Base September-December 2015
95.0 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.50 1.23 1.34 2.78
Completed projects 0.87 1.24 1.11 1.35
Stalled projects 2.68 0.69 0.88 3.41
Revived projects 0.23 0.34 0.22 0.24
Implementation stalled projects 0.76 0.78 0.71 1.05
Updated on: 19 Jun 2018 8:20PM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 10.7
 Expenses 9.9 9.0 13.0 17.3
 Net profit -19.8 -18.0 -14.3 -78.4
 PAT margin (%) 5.3 5.5 4.8 1.4
 Count of Cos. 4,512 4,498 4,486 4,225
Non-financial Companies
 Income 10.2 8.2 13.3 12.4
 Expenses 10.5 8.1 12.3 13.0
 Net profit -25.1 -6.0 13.1 1.4
 PAT margin (%) 5.2 6.2 6.4 6.8
 Net fixed assets 9.2 11.9
 Current assets 78.6 8.4
 Current liabilities 11.0 10.7
 Borrowings 10.4 1.4
 Reserves & surplus 5.2 8.1
 Count of Cos. 3,480 3,467 3,469 3,275
Numbers are net of P&E
Updated on: 19 Jun 2018 8:21PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 5.6 5.5
 Expenses 5.7 1.9 5.6 6.2
 Net profit 0.0 -10.0 26.3 0.9
 PAT margin (%) 3.0 2.8 3.5 12.0
 Assets 9.5 10.1 7.2 18.5
 Net worth 8.5 11.3 6.8 5.4
 RONW (%) 5.8 4.9 5.9 13.6
 Count of Cos. 25,852 24,013 21,375 64
Non-financial Companies
 Income 4.8 1.0 5.4 4.0
 Expenses 5.0 0.3 5.7 1.6
 Net profit -8.2 19.2 21.2 18.3
 PAT margin (%) 2.0 2.4 3.0 16.5
 Net fixed assets 13.3 17.2 6.2 5.2
 Net worth 6.9 12.0 5.5 -2.4
 RONW (%) 4.6 5.1 6.1 21.6
 Debt / Equity (times) 1.1 1.1 1.0 0.1
 Interest cover (times) 1.9 1.9 2.1 34.4
 Net working capital cycle (days) 66 65 62 43
 Count of Cos. 21,088 20,114 17,854 48
Numbers are net of P&E
Updated on: 04 Jun 2018 11:54AM