Mall operators expected to register 7-9 pc revenue growth 2023-24: Crisil

New Delhi [India], April 24 : Firm retail sales and improved incomes from rental activities are expected to lift the revenue of mall operators by 7-9 per cent during the financial year 2023-24, according to Crisil Ratings.

The revenue is estimated to be 125 per cent of their pre-pandemic levels.

Additionally, Crisil Ratings said high occupancy levels in malls, strong profitability, and strong balance sheets will keep the credit risk profiles of the operators healthy in 2023-24.

CRISIL Ratings said it analysed as many as 28 malls.

"Robust retail sales will help mall operators increase revenue in two ways. One, occupancy of 95 per cent will translate to better rental rates for new leases. Two, 10-15 per cent of the revenue of mall operators is linked to retail sales via revenue share income, which will increase this fiscal," said Mohit Makhija, Senior Director at CRISIL Ratings.

Further, Crisil Ratings also said capital expenditure in the sector is expected to pick up over the near to medium term considering the ongoing healthy performance.