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LATEST NEWS UPDATES | Over a fourth of MSMEs lost more than 3% market share last fiscal: Crisil -Subhash Narayan

Over a fourth of MSMEs lost more than 3% market share last fiscal: Crisil -Subhash Narayan

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published Published on Jun 27, 2022   modified Modified on Jun 28, 2022

-Livemint.com

While the industry Ebitda margin is expected to touch pre-pandemic level this fiscal, MSMEs in more than half the sectors will buck the trend. The performance is also underwhelming in the context of corporate India, which is expected to log a 10-14% increase in revenue and Ebitda margin of 19-20%

NEW DELHI: More than a quarter of India’s micro, small and medium enterprises (MSMEs) lost over 3% market share due to the covid pandemic, while half of them saw their earnings before interest, tax, depreciation and amortisation (Ebitda) margins contract because of a sharp rise in commodity prices last fiscal compared with pre-pandemic (fiscal 2020) levels, a CRISIL Research’s SME Report 2022 said.

To be sure, assessing the impact on MSMEs has been a real challenge because of information asymmetry and lack of high-frequency data points.

The CRISIL report covered 69 sectors and 147 clusters that logged aggregate revenue of 47 lakh crore, representing 20-25% of the gross domestic product (implying two-thirds coverage of the MSME universe).

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Livemint.com, 27 June, 2022, https://www.livemint.com/industry/over-a-fourth-of-msmes-lost-more-than-3-market-share-last-fiscal-crisil-11656319143898.html


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