Page 15 - Icra

Revenue of top domestic pharmaceutical firms to grow by 7-9% in FY24: Icra

Revenue of top domestic pharmaceutical companies is likely to grow by 7-9 per cent in the current fiscal, according to rating agency Icra. The growth will be supported by an 8-10 per cent expansion in the domestic market and a 6-8 per cent rise in the US market, while revenues from the European and emerging markets are expected to increase by 3-5 per cent and 8-10 per cent, respectively, it noted. Icra said it has taken into account a sample set of 25 Indian drug firms, which constitute 60 per cent of the overall domestic industry. The segment reported a growth of 10 per cent in the 2022-23 fiscal. Icra said that a continued focus on complex generics/speciality launches in the US market is expected to support industry margins in FY2024. The overall credit profile of Indian pharmaceutical companies is expected to remain healthy, supported by their stable earnings profile, comfortable leverage and coverage metrics, and strong liquidity position, it added. "The 8-10 per cent growth

Retail loans given by NBFCs to grow 18-20% in FY24, says Icra report

Digitalisation and cross-selling shaping high growth in unsecured loans, it says

Expect premium hotel occupancy in India to be at decadal-high of 72%: Icra

Premium hotel occupancy in India is estimated to be at a decadal-high of 70-72 per cent with average room rates expected around Rs 6,000 to Rs 6,200 in FY24, ratings agency ICRA said on Wednesday. Consistent improvement in consumer sentiments despite the inflationary environment, stable corporate performance, and domestic air passenger traffic inching above pre-Covid levels augur well for travel and hotel demand, ICRA said in a statement. The ratings agency said it "estimates pan-India premium hotel occupancy at around 70-72 per cent in FY2024, after recovering to 68-70 per cent in FY2023." Pan-India premium hotel average room rates (ARRs) are expected to be at Rs 6,000 to Rs 6,200 in FY2024, it added. "While the occupancy is expected to be at decadal highs, the RevPAR (Revenue per available room) is expected to remain at a 20-25 per cent discount to the FY2008 peak," ICRA said. ICRA Ltd Vice President and Sector Head Corporate Ratings, Vinutaa S said gateway cities like Delhi an

Tyre demand in India to grow by 6-8% in FY24, says Icra report

Stable input prices to help industry's margins, says the agency

Securitisation volumes surge 60% YoY at Rs 53,000 crore in first quarter

Securitisation involves pooling of loans and selling them to a special purpose entity, so that a lender gets liquidity upfront on the assets it has originated

Coal production increased in big way from FY22-FY23; supply improved: Icra

India's coal production picked up in "a big way" during FY22 and FY23 resulting into improved availability and supply of the dry fuel, on account of various government initiatives towards the sector, Icra said. The production of Coal India grew by 12.1 per cent in FY23, the ratings agency said, adding it was the fastest growth rate registered by the state-owned miner in the past few decades. Besides enhancing output and supply, the government implemented multiple reforms to bring in greater transparency, improvement in ease of doing business, and investment attractiveness in the domestic coal and mining sectors, Jayanta Roy, Senior Vice President & Group Head Corporate Ratings, Icra, said. The government has taken various initiatives since January 2015. The policy interventions, especially with regard to the both captive and commercial coal mining have ushered in greater transparency and ease of doing business in the coal sector, he said in the Icra note. "Domestic coal ...

Cement industry production to grow 7-8%: Icra gives 'stable' outlook

The domestic cement industry is expected to have a volumetric growth of 7-8 per cent in FY24, helped by a rise in demand from the housing and infrastructure sector, a report by ICRA said on Monday, giving a 'stable' outlook for the sector. Besides, the softening of input costs would help the cement industry to improve its operating profits before interest, tax, depreciation and amortisation by 14-18 per cent Year-on-Year (YoY) to Rs 900-950 per MT in FY24, it added. Moreover, supported by healthy demand prospects, the capacity addition in the cement industry is estimated at 63-69 million metric tonnes (MT) between FY24 and FY25. In this, a capacity worth around 33-36 million MT will be added in FY24 and around 30-33 million MT in FY25. "The cement capacity is expected to rise by 6 per cent in FY2024, the highest addition in the last five years," it said. ICRA has given a "stable" outlook for the cement sector. Steady demand from the housing and infrastructure sectors along with a

States borrowing cost rises 4 basis points to 7.4%, says Icra Ratings

In the last weekly auction of the June quarter, 12 states raised Rs 22,500 crore in debt on Tuesday. The amount is 5 per cent lower than the indicated Rs 23,600 crore for the week at an average weighted cut-off rate of 7.41 per cent, up 4 basis points from the last auction. The rise in the average pricing is primarily due to an increase in the weighted average tenor to 16 years from 14 years, Icra Ratings said in a note. The spread between the 10-year state security and the 10-year Government of India security inched up to 34 bps. As a result, the weighted average cost rose 4 bps to 7.41 per cent, the rating agency said.

Non-ferrous industry earnings to remain under pressure in FY24: Icra

Earnings of domestic non-ferrous metal industry players remain under pressure in the ongoing fiscal amid weak demand, according to Icra. Due to global macroeconomic uncertainties and weaker-than-earlier expected recovery in Chinese demand, international prices of the three non-ferrous metals viz. aluminium, copper and zinc fell by 11 per cent, 8 per cent and 30 per cent, respectively, in the last six months, the rating agency said in a report. "The earnings of the industry would remain under pressure in FY2024, after a lacklustre performance in the last fiscal. Significant metal price corrections remain the key headwind affecting the margins, with no immediate relief in sight," it said. The moderation in earnings, combined with the committed expansion plans of the players, is expected to increase the industry's leverage in FY2024. However, the debt protection metrics remain adequate in the base case scenario and, therefore, ICRA maintains a stable outlook on the sector. Global ...

CBAM framework to impact India's 15-40% of steel export to Europe: Icra

The Carbon Border Adjustment Mechanism (CBAM) framework will impact India's 15-40 per cent of steel exports to Europe, Icra said on Thursday. The impact will be seen from the calendar year 2026 to 2034, the rating agency said in a report. The European Union (EU) is introducing the CBAM from October 1 this year. Icra said the EU is the second largest steel-consuming block globally. It recently signed the mechanism laying the framework for the imposition of taxes on embedded carbon imports from six sectors, which includes steel, aluminium, cement, hydrogen, electricity, and fertiliser. "...CBAM compliance requirements could pull down the profits of Indian steel exports to the EU by USD 60-165/MT between CY 2026 and CY2034. CBAM to impact between 15-40 per cent of India's annual steel exports which are made to Europe. Failure to reduce the carbon footprint may result in lower profits in EU markets," it said. According to Icra, India exports up to 3-5 million tonnes of finished steel

Bank NIMs to compress 10-120 bps in FY24: Rating agencies CRISIL and ICRA

With a healthy loan profile, credit costs fall further from 0.7% in FY23

Bond auction: 11 states borrow Rs 22,500 crore; Maharashtra tops the list

The four state governments issued 10-year bonds to raise Rs 3,000 crore. Tamil Nadu raised Rs 2,000 crore, Haryana Rs 750 crore, Nagaland Rs 150 crore, and Goa Rs 100 crore

India's domestic air passenger traffic up by 2.3% in May, Icra study shows

The Indian airline sector is having a smooth flight in terms of increasing passenger traffic this fiscal as per ICRA study

Bond issuances by banks to fall below Rs 90,000 cr in FY24: Report

Issuances hit all-time high of Rs 1.1 trn previous financial year but liquidity conditions easing now

India Inc's revenue grew 11.4% in Q4FY23, but geopolitical tensions remain

According to Icra, sequential recovery in the overall performance of India Inc is contingent upon how well the entities are able to cope with the headwinds going forward

IT sector growth to slow down further in FY24, hiring to be low: Icra

Indian IT companies revenue growth will slow down further to mid-single digits amid intensifying headwinds for the nearly USD 250 billion dollar sector, domestic rating agency Icra said on Wednesday. The continuing uncertainties are set to take their toll on hiring, and companies are expected to keep employee addition at "low levels" in the near term, the rating agency said, adding that the net addition is negative in the last two-quarters of FY23. As per industry lobby grouping Nasscom's report published in March, the sector's growth slowed down to 8.4 per cent in FY23 from over 15 per cent in the previous fiscal. "Despite a strong order book and deal pipelines of Indian IT services companies, Icra expects the revenue growth to remain subdued in mid-single digits in USD terms in FY2024," the agency said. It has maintained its stable outlook for companies in the sector, which is generally known to have the best quality on leverage positions. The agency said the growth momentum ...

Thermal plants capacity utilisation may to improve to 65.1% in FY24: Icra

India's total plant load factor (PLF) or capacity utilisation of thermal plants is expected to rise to 65.1 per cent this fiscal over 64.2 per cent in the preceding financial year (FY) 2022-23, according to Icra. In its latest report, Icra projected the all-India thermal PLF level to improve to 65.1 per cent in FY2024 led by the growth in electricity demand and limited thermal capacity addition. Its outlook for the thermal power segment is also stable, supported by the healthy improvement in the thermal PLF, coupled with the reduction in dues from state distribution utilities (discoms), following the implementation of the late payment surcharge (LPS) scheme, the ratings agency said on Wednesday. "The rating agency projects the full-year demand growth for FY2024 at a modest 5.0-5.5%, slightly lower than its expectation for the GDP growth for this fiscal (6 per cent), with unseasonal rains having dampened demand over the past two-and-a-half months," it said. However, the demand is ..

Services sector to drive GDP growth to 4.9% in Q4 FY23, says Icra

Domestic rating agency Icra expects GDP growth in January-March period of 2022-23 at 4.9 per cent, a modest step-up from the 4.4 per cent recorded in preceding quarters, driven by the services sector. The National Statistical Organisation (NSO) is scheduled to release the provisional estimate for the GDP growth for the fourth quarter as well for the fiscal 2022-23 on May 31. Icra estimates the services gross value added (GVA) year-on-year growth to have risen mildly to about 6.4 per cent in Q4 FY23 from 6.2 per cent in Q3 FY23. The YoY performance of nine of the 14 high frequency indicators of the services sector improved in Q4 FY23 relative to Q3 FY23, partly reflecting the robust demand for the contact-intensive segment, as well as the low base of Covid 3.0 for some sectors such as aviation, it said in a release. Aditi Nayar, Chief Economist, Head-Research and Outreach, Icra, said that economic activity in fourth quarter of FY23 remained uneven, with domestic demand for services

Stocks to Watch today, May 25: Nykaa, LIC, Adani Group, Hindalco, Nalco

Stocks to watch on May 25, 2023: AIA Engineering, eClerx, GSFC, Voda Idea, IEX, IFCI, Page Inds, SAIL, Strides Pharma, and Zee among prominent companies scheduled to announce Q4 results on Thursday.

Icra Q4 net profit up 14.5% YoY to Rs 38.6 cr; revenue rises 16.4%

Consolidated revenue from operations increased by 17.6 per cent YoY to Rs 403.2 crore in FY23