Page 10 - Icra

Expect commercial vehicle volumes to witness 4-7% dip this fiscal: ICRA

Hit by a high base of last year and weakness in demand, the domestic commercial vehicle industry is expected to witness a dip of 4-7 per cent in wholesale volumes in the current fiscal as compared to FY23, rating agency Icra said on Friday. The medium and heavy commercial vehicle (trucks) volumes are expected to contract by 4-7 per cent year-on-year given the high base effect and the impact of the Lok Sabha polls on infrastructure activities in the first few months. Similarly, the volume of light commercial vehicles (trucks) wholesale volumes is likely to decline by 5-8 per cent in FY2025 due to factors such as a high base effect, sustained slowdown in e-commerce, and cannibalisation from electric three-wheelers, Icra said. The rating agency expects the domestic CV industry's uptrend to be arrested in FY2025, with a decline of 4-7 per cent in wholesale volumes, it stated. This follows a muted year-on-year growth of 1 per cent and 3 per cent for wholesale and retail sales, ...

Domestic air passenger traffic grows 5.1% to about 138.9 mn in May: ICRA

Domestic air passenger traffic grew 5.1 per cent year-on-year to an estimated 138.9 million in May and was significantly higher by around 14 per cent than pre-Covid levels, credit ratings agency Icra said on Thursday. Icra also said the outlook on the Indian aviation industry is stable amid the continued recovery in domestic and international air passenger traffic with a relatively stable cost environment and expectations of the trend continuing in FY2025. The airlines' capacity deployment in the previous month increased 6 per cent year-on-year and about 2 per cent higher than April 2024, it added. According to the agency, the domestic air passenger traffic for FY24 was around 154 million, with a year-on-year growth of around 13 per cent. It thus surpassed the pre-COVID levels of around 142 million in FY2020, the ratings agency said, adding that the international passenger traffic for Indian carriers stood at around 29.68 million last fiscal, registering a year-on-year growth of ..

ICRA revises domestic steel consumption growth upwards to 9-10% for FY25

Domestic steel consumption between February to April 2024 registered a growth of 11.3 per cent

MPC likely to maintain status quo for eighth time in a row: BS poll

Respondents cite moderate inflation data, outlook for food prices, high growth

Major private hospital chains see rise in revenues per bed in FY24

They are on an expansion spree and guided for more bed additions in FY25

Vedanta says ICRA has assigned top rating to its commercial paper

Vedanta on Thursday said ICRA has assigned A1+ rating to the company's Rs 2,500-crore commercial paper, citing multiple positives. ICRA highlighted Vedanta's diversified product portfolio and a healthy market share while assigning the rating, the company said. A1+ is the highest rating in a scale of ratings provided by the credit rating agency for such instruments. "ICRA Ltd...has assigned ICRA A1+ Rating on commercial paper," Vedanta said in a filing to the BSE. Similarly, the credit rating agency has also assigned an ICRA AA- rating to Vedanta's long-term bank loans, it said. The mining major has proposed a vertical split of the businesses and is expected to list five entities on the stock exchanges by the end of this year.

ICRA Q4 results: Net profit up 21.8% to Rs 47 cr, total revenue rises 13.7%

For financial year FY24, its consolidated net profit rose to Rs 152.24 crore up from Rs 136.72 crore in FY23

Dependency on minerals import risks India's green tech progress: ICRA

According to the report, there has been a gradual shift in global energy policy priorities from fuel and energy security to mineral security

Scramble for ERP licence even as doubts remain on the market size

About a dozen players dive into the fray

International traffic expected to grow faster than domestic in FY25: ICRA

While the domestic passenger traffic is expected to grow at 8-10 per cent Y-o-Y to 330-340 mn, the international passenger traffic is likely to increase by 10-14 per cent Y-o-Y to 80 mn, it mentioned

Slowdown in mining output drags IIP growth to 4.9% in March: Govt data

The IIP had grown by 1.9 per cent in March 2023

ICRA forecasts moderate growth for tyre sector in FY25 as input costs rises

The report cites healthy demand from OEMs in the passenger vehicle (PV) and two-wheeler (2W) segments, along with replacement demand, as the primary drivers of domestic growth

Credit flow to moderate, corporate bond issuances to rise in FY25: ICRA

The incremental credit flow was also supported by the all-time high corporate bond issuances of Rs 10.2 trillion during the previous financial year

53 mn sq ft office space eligible to be monetised via SM-REIT for Rs 70K cr

Rating agency ICRA has estimated that around 530 lakh square feet of office spaces are eligible for small and medium REITs (SM-REIT) listing, creating a monetisation opportunity of Rs 67,000-71,000 crore. In November last year, the Sebi board cleared the amendments to the REITs Regulations, 2014, in order to create a regulatory framework for the facilitation of SM REITs, with an asset value of at least Rs 50 crore vis-a-vis minimum asset value of Rs 500 crore for existing REITs. As per the notification, the minimum price of each unit of the scheme of SM-REIT shall be Rs 10 lakh or such other amount as may be specified by Sebi from time to time. The size of the asset proposed to be acquired in a scheme of the SM-REIT is at least Rs 50 crore and less than Rs 500 crore. "Small and Medium REITs will provide an opportunity for small Grade A and most of the Grade B office developers to monetise their investments. Also, Fractional Ownership Platforms (FOPs) are expected to be formalised, .

India's core sector growth slows to 5.2% in March from 7.1% in February

In March 2023, the core sector had recorded a growth of 4.2 per cent

India's oil import bill could swell to $101-104 billion in FY25: ICRA

India's net oil import bill could widen to USD 101-104 billion in current fiscal from USD 96.1 billion in 2023-24 and any escalation in the Iran-Israel conflict could impart an upward pressure on the value of imports, ICRA said on Tuesday. The domestic rating agency said based on its analysis, lower value of Russian oil imports is estimated to have led to savings of USD 7.9 billion in 11 months (April-February) of 2023-24, up from USD 5.1 billion in 2022-23. "With India's oil import dependency expected to remain high, if the discounts on purchases of Russian crude persist at the prevailing low levels, ICRA expects India's net oil import bill to widen to USD 101-104 billion in FY2025 from USD 96.1 billion in FY2024, assuming an average crude oil price of USD 85/bbl in the fiscal," ICRA said. Additionally, any escalation in the IranIsrael conflict and an associated rise in crude oil prices could impart an upward pressure on the value of net oil imports in the current fiscal year, it .

Construction sector firms' revenues to see 12-15% growth this fiscal: ICRA

India's construction sector entities' revenues are likely to grow by 12-15 per cent in the current financial year, while margins will expand by 25-50 bps, rating agency ICRA said on Monday. It further said that the government's infrastructure push will result in double-digit revenue growth for the construction industry in FY2025. The rating agency said it maintains a stable outlook on the sector with steady growth in operating income, moderate leverage, and healthy coverage metrics. "The aggregate order book-to-sales ratio of ICRA's sample set of companies stood at around 3.9x as of December 2023 (compared to 3.4 times during March-2023), thereby indicating a healthy revenue growth prospect over the medium term," ICRA vice president and co-group head - corporate ratings Ashish Modani said. He said, ICRA expects the revenue growth in FY2025 to remain healthy at 12-15 per cent on a year-on-year basis, albeit slightly lower than the 18-20 per cent revenue expansion assessed for FY2024

Expect capex for EV components to cross Rs 25K cr in next 3-4 years: Icra

The auto component industry is expected to invest over Rs 25,000 crore in the next 3-4 years to expand production of electric vehicle parts, rating agency Icra said on Tuesday. EV penetration in the country has reached 4.7 per cent in FY2024, with much of it driven by the electric two-wheeler segment, although e-three-wheelers and electric buses have also contributed to the same, it said in a statement. There has been substantial localisation in traction motors, control units, and battery management systems over the years, Icra said. However, advanced chemistry batteries, which remain the most critical and the costliest component, accounting for almost 35-40 per cent of the vehicle price, are imported, it added. The low localisation levels give rise to manufacturing opportunities for domestic auto component suppliers, it said. "Icra expects at least Rs 25,000 crore of capex for EV components in the next three-four years, for capacity building, technology and product enhancements,"

Good times ahead for United Breweries as heatwave, IPL set the tone

The company is expected to increase its volumes in the March quarter by 9% Y-o-Y on the back of market share gains in N India

Volumes of domestic mining, construction equipment may drop in FY25: ICRA

Rating agency ICRA on Thursday said the volumes of domestic mining and the construction equipment (MCE) industry may drop in the current financial year on account of a slowdown in the new project orders amidst Lok Sabha elections and monsoon-related impact on construction activities. "ICRA expects FY2025 to see a 12-15 per cent year-on-year decline (which translates into volumes of 1.14-1.18 lakh units)," the rating agency said in a statement. This drop is following two consecutive years of strong growth of 26 per cent in FY'23 and 24 per cent in FY'24. "The reversal in this growth trend will be driven by a slowdown in the new project award activity in Q4 FY2024 and Q1 FY2025, as the Model Code of Conduct will remain in force during the Parliamentary Elections in April-May 2024 (till the announcement of results on June 4, 2024). "Additionally, the aggregate revenues for ICRA's sample set companies are expected to contract by 9-12 per cent and operating margins by 100-150 basis poin