Page 11 - Icra

Indian hotel industry to report 7-9% revenue growth in FY25: ICRA

The Indian hotel industry is expected to register a revenue growth of seven to nine per cent in the next financial year 2024-25, according to a report by credit rating firm ICRA. ICRA said that sustenance of domestic leisure travel, demand for meetings, incentives, conference and exhibitions (MICE) are the factors which will drive demand in the next financial year, despite a temporary lull during the ensuing general elections. The research firm said that spiritual tourism and Tier 2 cities are expected to contribute meaningfully to the overall demand in the next fiscal. According to ICRA, estimates for pan-India hotel occupancy reached a decadal high of 70 per cent to 72 per cent in the current financial year and next fiscal, as compared to 68 per cent to 70 per cent in 2022-23. Pan-India, average room rates (ARRs) are expected to be around Rs 7,200 to Rs 7,400 in the current fiscal, which is likely to rise further to Rs 7,800 to Rs 8,000 in the next financial year. ICRA holds a .

Renewable Energy capacity to rise to 170 GW by March 2025, says ICRA

India's installed Renewable Energy (RE) capacity, excluding large hydro plants, is estimated to increase to 170 GW by March 2025 from a level of 135 GW in December 2023, rating agency ICRA said on Friday. "ICRA estimates that the rise in the RE capacity over the next five-six years is estimated to enhance the share of RE plus large hydro in the all-India electricity generation from about 23 per cent in FY24 to around 40 per cent in FY30," ICRA said in a statement. Given the intermittency associated with RE generation, the availability of Round The Clock (RTC) supply from RE sources remains important, it stated. This can be made possible through the use of wind and solar power projects complemented with energy storage systems, it suggested. According to the statement, ICRA expects the installed RE capacity, excluding hydro energy, in India to increase to about 170 GW by March 2025 from 135 GW as of December 2023. Thereafter, the capacity addition is likely to be supported by the ..

SDI issuances by corporates to rise to Rs 100 crore in FY2024: ICRA

According to ICRA, since FY20, 18 SDIs have been issued by corporate entities, totalling approximately Rs 250 crore

GDP growth to moderate sequentially to 6% in Q3 FY2024, projects ICRA

Rating agency ICRA on Wednesday projected GDP growth to moderate sequentially to 6 per cent in the third quarter of FY24 from 7.6 per cent in the preceding three months mainly due to subdued performance of agriculture and industrial sectors. Further, it said the GVA (Gross Value Added) growth is estimated to ease to 6 per cent in the October-December quarter FY24 from 7.4 per cent in the second quarter of the last fiscal. The anticipated deterioration in the industrial sector growth in the third quarter is partly attributable to an adverse base effect and a deceleration in volume expansion, even as the continued deflation in commodity prices kept the profitability of some sectors favourable. Additionally, a mild 0.2 per cent contraction in the total spending of the government of India and the 25 state governments (all states except Arunachal Pradesh, Goa, and Manipur) in the October-December period is expected to have dulled the GVA growth in the quarter. "Lower volume growth for t

Commercial vehicle sales likely to enter into a downcycle in 2024-25

Volumes are expected to dip by 4-7 percent

Auto components sector growth may ease to 5-7% in FY25, says ICRA

On the EV front, there is significant opportunity. At present, only 30-40 percent of the EV supply chain is localised

Canara Bank raises Rs 2,000 crore in capital through Tier-I bonds

In January, the country's largest lender SBI raised Rs 5,000 crore in capital through Basel III compliant Additional Tier 1 bonds (AT-I) at a coupon rate of 8.34 per cent amid tight market conditions

PE majors Blackstone, ChrysCapital join race to buy Healthium Medtech

The company is generating good response from the potential bidders as it is focusing primarily on products in surgical and post surgical as well as chronic care

At Rs 9.82 trillion, April-Dec fiscal deficit 55% of govt's annual target

The fiscal deficit was marginally lower at Rs 9.9 trillion, recorded during the corresponding period last year

Indian companies look to cash in on bulging infrastructure order book

The growth of the big companies is trickling down to smaller companies and suppliers too

Thermal power plants' capacity utilisation to rise to 69% in FY25: ICRA

The capacity utilisation of thermal power plants will increase by a percentage point to 69 per cent in 2024-25, led by the growth in electricity demand and limited thermal capacity addition, says rating agency ICRA. ICRA's outlook for the thermal power segment is 'Stable', supported by the healthy improvement in the thermal plant load factor (PLF), coupled with the reduction in dues from state distribution utilities (discoms) following the implementation of the Late Payment Surcharge (LPS) scheme since August 2022, a statement said. "The current under-construction thermal capacity is about 30 GW, which is predominantly in the Central and the state-owned generation segment and is expected to be commissioned over the next two to four-year period," Girishkumar Kadam, Senior Vice President & Group Head - Corporate Ratings, ICRA, said in the statement. In our view, there is a clear need for incremental capacity beyond this pipeline if the annual electricity demand growth continues to ..

Agricultural commodities may be significantly impacted by Red Sea crisis

The Red Sea crisis has led to a 122% rise in freight costs in the last few months, according to ICRA

ICRA revises bank credit growth estimates upwards to 14.9-15.3% for FY24

Looking ahead, weaker export demand in certain sectors, softer commodity prices, and challenges in deposit mobilisation could temper bank credit growth in FY25, Gupta said

Bank credit expansion projected at 15% in FY24, 12% in FY25: ICRA

Rating agency Icra on Wednesday revised upward its bank credit growth projection at 14.9-15.3 per cent this fiscal, but said the same will lose steam and grow at 12 per cent next fiscal. At 14.9-15.3 per cent, the system level credit expansion in absolute terms will be Rs 20.4-20.9 lakh crore, it said, adding this will be the highest ever incremental bank credit growth and would surpass the previous high of Rs 18.2 lakh crore recorded in FY23 at a growth rate of 15.4 per cent. The agency had earlier estimated a 12.8-13 per cent credit demand for this fiscal. However, citing the rising global headwinds and also the higher base coupled with the challenges in deposit mobilisation, the agency said it expects the rate of incremental credit expansion to slow down to Rs 19-20.5 lakh crore or 11.7-12.6 per cent in FY25. Weaker export demand in certain sectors, softer commodity prices, and challenges in deposit mobilisation could temper bank credit growth in FY2025, it added. Further, the

State Bank of India raises Rs 5,000 crore in capital via AT1 bonds

Fixes coupon at 8.34%, 24 bps higher than previous offering

Expect private hospitals to invest Rs 32,000 cr, add over 30,000 beds: ICRA

Private hospital chains are expected add over 30,000 beds at an investment of Rs 32,500 crore in the country over the next four to five years, rating agency Icra said on Wednesday. It expects the aggregate occupancy for its sample set companies to remain healthy at 64-65 per cent in FY24 backed by sustained healthy demand for healthcare services, continued market share gains for organised players and revival in medical tourism after the pandemic. "Overall, most private players are expected to add over 30,000 beds in the next four to five years at an investment of Rs 32,500 crore," ICRA Assistant Vice President & Sector Head Mythri Macherla said. Metro cities are expected to remain focal points for this capacity expansion, she added. Centres such as Delhi-NCR, Mumbai, and Bengaluru are expected to witness sizeable bed additions in the next few years, Mythri said. In addition to setting up new greenfield and brownfield facilities to enhance their capacities, hospital chains are also

Disinvestment target for FY25 likely to be pegged below Rs 50,000 cr: Icra

Interim Budget 2024: For FY24, the Centre had set a disinvestment target of Rs 51,000 crore but has only been able to meet one-fifth of it so far

India's GDP may grow 7.3% in FY24: Govt's first advance estimates

Construction, manufacturing likely key drivers; weak consumption growth among major concerns

ICRA predicts 9-11% growth in FY24 fuelled by new launches, US rebound

ICRA anticipates expansion in revenues for its sample set of 25 companies, which represent approximately 60 per cent of the overall revenues of the Indian pharmaceutical industry

Yield spread between state bonds and g-sec widens to two-year high

The yield spread widened to 53 basis points on Tuesday. The last time the yield spread widened above 50 basis points was in January 2022