Page 16 - Icra

April GST collection of Rs 1.87 trn is robust, reasonable, says Icra

According to Jalan, the Central Board of Indirect Taxes and Customs (CBIC) is expected to achieve more, which it has not in April 2023 wherein the growth in GST Collections is exactly 12 per cent

Ratings firm Icra expects tyre sector revenues to grow by 7-9% in FY24

Ratings firm Icra on Thursday said it expects a revenue growth of 7-9 per cent for tyre industry in the current fiscal. The rating agency pegs the domestic tyre demand growth at 6-8 per cent for FY2024, supported by stable growth in the replacement segment and sustained demand momentum in the OEM segment, Icra said in a statement. The rating agency noted that it expects the demand momentum in the OEM (Original Equipment Manufacturer) segment to continue in FY2024 with an estimated growth of 8-10 per cent. Replacement demand, which forms around two-thirds of tyre demand, is likely to witness mid-single digit growth in FY2024, it added. "ICRA projects a 7-9 per cent growth in industry revenues for FY2024 with domestic growth outpacing exports," Icra Assistant Vice President and Sector Head Nithya Debbadi said. Segment-wise, commercial vehicles shall benefit from the increasing traction in the infrastructure and construction segments, she added. Strong underlying demand and preferen

Tata Capital to LIC Housing finance: Companies to raise funds from markets

Punjab & Sind Bank will raise funds through the sale of certificates of deposit maturing in three months

Execution of market reforms key to improve financial viability of PSP: Icra

Timely implementation of market reforms is important to improve the financial viability of pumped storage hydro project (PSP) in the country, an Icra report said on Tuesday. The levellised tariff for pumped storage hydro projects in the base case, assuming a capital cost of Rs 6.5 crore per MW, is estimated at about Rs 5 per unit, and the landed tariff, including the cost of energy required for pumping, is estimated at Rs 9 per unit, said a statement in the Icra report. It explained that while the tariff competitiveness of the storage component for PSPs is modest, the PSPs benefit from a long economic life of 40 years with a very mature and indigenous technology available. PSPs are also estimated to remain cost competitive against the storage cost associated with battery energy storage. "Nonetheless, the timely implementation of market reform measures as highlighted in the guidelines remains important to improve the financial viability of PSPs," stated Girishkumar Kadam, Senior Vic

Icra projects 20-25% growth for quick-service restaurant industry in FY24

India's quick service restaurant industry is likely to witness 20-25 pc growth in the current financial year supported by demand uptick and increasing penetration driven by a rapid expansion of stores. Over the long-term, revenue growth shall be supported by factors like rising QSR penetration levels, a shift from the unorganised to the organised segment with a preference for branded quick service restaurant (QSR) players, given the hygiene and convenience factors (delivery over dine-in), etc, ICRA said. "On the back of a robust industry revenue expansion of around 30-35 per cent in YoY terms estimated for FY2023, ICRA projects growth to moderate somewhat while remaining strong at 20-25 per cent in FY2024 on account of the demand uptick and increasing penetration driven by a rapid expansion of stores," the rating agency said. However, downside risks to the estimates remain from the emergence of any further Covid waves or any material weakening in purchasing power due to a high ...

Domestic aviation sector recovering, passenger traffic 60% higher in FY23

The domestic aviation industry continues to witness recovery with air passenger traffic logging around 60 per growth at 13.60 crore in FY23 annually, ICRA said on Wednesday. Despite this, domestic air passenger traffic remained around 4 per cent below the pre-pandemic (FY20) volume of 14.15 crore, the credit rating agency said. The Indian carriers had flown a total of 8.52 crore passengers on local routes in the year ended March 2022, as per ICRA. Domestic passenger traffic stood at 1.30 crore in March this year, a growth of around 22 per cent from March 2022 volume of 1.06 crore, said Suprio Banerjee, Vice President, ICRA. In FY23, the overall airlines' capacity deployment was higher by 38 per cent as compared to FY22, he said. The airlines' capacity deployment last month was higher by 14 per cent year-on-year and around 7 per cent more than pre-COVID level of March 2019, ICRA said. The domestic passenger load factor of the airlines industry, according to ICRA is estimated at 89

National Fertilisers soars 9% to hit 52-week high on hopes of strong Q4FY23

The average trading volumes on the counter jumped nearly 10-fold, as around 14.35 million equity shares, which represented 3 per cent of total equity of NFL changed hands on the NSE and BSE so far

CNG penetration to rise to 18% by 2027 from 11% in 2022, says Icra

ICRA said that the new gas pricing policy led to CNG prices declining to levels seen nearly a year ago, thereby providing relief to the consumers

Earnings of primary base metal players to remain weak in near-term: Icra

The earnings of primary base metal industry is expected to remain weak in the near-term, mainly on high energy cost and range-bound market rates, according to ICRA. While better coal linkage availability would provide some respite, the margins would remain significantly lower than the levels seen in FY 2021-2022, the ratings agency said in its latest report. ICRA expects the "primary base metal industry's earnings to weaken significantly in FY2023 and remain so in the near-term, owing to stubbornly high energy costs and range-bound metal prices," it said. The list of base metals include aluminium, copper, nickel, tin, lead and zinc. "The operating margins of domestic base metal entities are estimated to weaken significantly by around 10 percentage points in FY23, owing to the double whammy of metal price corrections and elevated coal costs. "Consequently, the operating margin of domestic entities is expected to remain range-bound at 19-20 per cent in FY24," Jayanta Roy, Senior ...

India Inc's credit quality outlook positive for FY24, say Crisil and Icra

Interest rate hikes, global slowdown, stubborn inflation pose risk

Centre to borrow 57.55% of its full-year target in H1FY24: FinMin

The government borrowing programme is scheduled to be completed in 26 weekly tranches of Rs 31,000-39,000 crore each

State govt mkt borrowings up 8% YoY to Rs 7.6 trn with last auction of FY23

14 states, one UT raise Rs 41,200 cr, amount is 67% higher than that indicated for State Government Securities (SGS) for this week in the Q4FY23 auction calendar

ICRA upgrades outlook on infra finance firms to 'positive' from 'stable'

Rating agency cites sector's improved solvency profile, loan book growth and earnings

Icra revises outlook for domestic steel demand to 7-8% for next fiscal

Icra on Wednesday revised its outlook for domestic steel demand to 7-8 per cent for the next fiscal. Earlier, the ratings agency had estimated the demand to grow in the range of 6-7 per cent. "With the central government's capex outlay in FY2024, Icra has revised upwards its steel consumption growth estimate for FY2024 to 7-8 per cent from 6-7 per cent," it said in a report. In 2023-24, the capital expenditure is budgeted at Rs 10 lakh crore which will constitute 3.3 per cent of GDP. In the ongoing fiscal also, the domestic steel consumption growth has remained strong supported by the government's push for infrastructure-led economic growth. Jayanta Roy, Senior Vice-President & Group Head - Corporate Sector Ratings at ICRA, said, "With steel consumption expected to grow in high-single digits next year, we expect the industry's capacity utilisation rate to improve to around 80 per cent in FY2024, despite the commissioning of some new expansion projects." The consumption of finishe

Domestic pharma industry revenues expected to grow 6-8 pc next fiscal: Icra

Domestic pharmaceutical industry is expected to witness a revenue growth of 6-8 per cent in the next fiscal, rating agency Icra said on Thursday. Despite several disruptive events, the Indian pharmaceutical market (IPM) witnessed a healthy CAGR of 10.9 per cent between FY2012 and FY2022. "Going forward, ICRA expects revenues for its sample set to increase by 6-8 per cent in FY2024 against 3-4 per cent growth in FY2023," Icra Assistant Vice President & Sector Head - Corporate Ratings Mythri Macherla said in a statement. Structural factors such as ageing population and continued rise in lifestyle/chronic diseases, in addition to WPI-linked price hikes for NLEM products, new product introductions, and annual price hikes for non-NLEM products, are expected to support revenue growth for the industry, she added. Since FY2018, IPM growth has largely been supported by price increases and new product introductions, even as volume growth remained between 2-3 per cent each fiscal, Macherla ..

Domestic passenger traffic estimated to rise by 54% YoY in Feb: ICRA

Daily departures averaged 2,967, up from 2,044 in February 2022 and 2,900 in January 2023, but down from 3,137 in February 2020

Domestic air passenger traffic projected at 11.9 million in Feb: Icra

Domestic air passenger traffic is projected to have touched around 1.19 crore in February, only about 4 per cent lower compared to pre-Covid levels, rating agency Icra said on Monday. Icra has also revised the outlook for the domestic aviation industry to stable from negative, citing a fast-paced recovery in domestic passenger traffic in FY 2023 and the expected continuation of the same in FY 2024. "For February 2023, domestic air passenger traffic has been estimated at around 119 lakh, around 5 per cent lower than around 125 lakh in January 2023. "However, it witnessed a YoY (Year-on-Year) growth of around 54 per cent, as February 2022 was marginally impacted by the Omicron variant of Covid 19. Domestic passenger traffic in February 2023 was lower by only around 4 per cent compared to the pre-Covid levels (i.e. February 2020)," it said in a report. For the first 11 months of the current fiscal, Icra said domestic passenger traffic is projected at around 12.29 crore, a y-o-y growth

Housing sales in volume terms grew 11% across 7 cities in Q3: Icra

Housing sales in volume terms grew 11 per cent in the third quarter of this fiscal across seven cities on better demand, according to rating agency ICRA. "At 149 million square feet (msf), the reported sales in Q3 FY2023 in the top seven cities in India is the highest quarterly sales recorded in over ten years," ICRA said in a statement on Wednesday. Residential real estate sector saw strong demand in Q3 of FY2023 with 11 per cent year-on-year (YoY) growth in area sold, it added. The area sold in the first nine months of FY23 increased to 412 msf against 307 msf in the corresponding period of the previous year. Post pandemic, ICRA noted that there has been a gradual shift in the overall segment-wise composition with a rise in the share of the luxury and mid segments to the overall sales across the top seven cities -- Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune. The share of the luxury and mid segments to the ove

Icra revises thermal power sector outlook to 'stable' on strong demand

Rating agency Icra has revised thermal power sector outlook to 'stable' from 'negative' due to strong demand growth and realisation of dues from discoms under LPS (late payment surcharge) scheme. The Icra's outlook for the thermal power segment has been revised to stable from negative, supported by the healthy improvement in the thermal PLF (plant load factor or capacity utilisation) level in FY2023, which is likely to sustain in FY2024, coupled with the reduction in dues from state distribution utilities (discoms), an Icra statement said. The PLF improvement is driven by the strong recovery in electricity demand growth in the country. A sustained growth in electricity demand is expected to improve the visibility on the signing of new power purchase agreements (PPAs) for the thermal IPPs (independent power producers), it stated. Vikram V, Vice President & Sector Head - corporate ratings, Icra, said, "The all-India thermal PLF level is expected to improve from 58.9 per cent in ...

Icra downgrades outlook on Adani Ports, Adani Total to 'negative'

Affirms ratings on long-term loans of both firms