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BW Businessworld

Mall Revenues Set To Halve This Fiscal: CRISIL

Support from sponsors, liquidity key to tide over short term cash-flow mismatches Revenue of mall operators is set to halve this fiscal because of the Covid-19 pandemic-driven lockdowns, says CRISIL’s analysis of the top 10 malls

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These malls have total rated debt of ~Rs 4,200 crore and cover 7.5 million square feet (msf), with pan-India presence. These have strong sponsors and high debt service coverage ratio (DSCR) of ~1.5 times on average. Hence, notwithstanding pressure on revenues, impact on credit quality of CRISIL rated malls is expected to be limited in near term.

Much of the impact on mall revenue is because multiplexes, food courts, restaurants and gaming zones have not yet opened in many locations as per government orders. These businesses, which contribute ~22% to the total revenues, have borne the brunt of the impact on operations due to social distancing and are also expected to take the longest to recover.  

For the other categories, such as apparels, cosmetics, electronics, and bookstores, which contribute ~75% of mall revenues, consumption is still low at 30-35% of previous years’ numbers in the first month of operations post reopening. With revenues dented, and recovery expected to be slow, these businesses have started renegotiating their contracts with mall owners – for waivers in lease payments, or discounts over the period of lockdown and in the medium term – thereby impacting mall revenues.


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malls mall management crisil