Page 20 - Icra

Brickwork impact: Charts favour Icra; CRISIL, CARE Ratings test key levels

ICRA and CRISIL have gained up to 22 per cent so far this year, while Care Ratings has been a underperformer, down 14 per cent.

Muthoot Finance to raise Rs 300 cr via secured NCDs, issue size at Rs 75 cr

Proposed NCDs have AA+ rating from ICRA denoting 'high degree of safety'

Credit ratios stay robust in H1FY23: Rating agencies CRISIL, ICRA

CRISIL said these sectors would see a moderation in cash flows vis-a-vis earlier expectations due to slowdown in demand from end-user markets

Credit quality of companies strengthens in first half of FY23: Report

Carrying on with the momentum since early FY22, credit quality of corporates has strengthened further in the first half of the current fiscal with rating upgrades being more than three times that of downgrades, says Icra Ratings. Upgrades saw an 18 per cent increase in the agency's portfolio entities in H1 on an annualised basis, which in FY22 was a notch higher at 19 per cent, making it a significant mark-up over the past five-year and 10-year average of 11 per cent, the agency said. The agency upgraded 94 companies in the first half of FY21, which went up to 303 in H1 FY22, but declined to 250 in H1 FY23. For the full fiscal of FY21 there were 282 upgrades which doubled to 561 in FY22. As against this, the numbers of downgrades were 200 in H1 FY21, 108 in H1 FY22 and 76 in H1 FY23 and at 316 in FY21 and 184 in FY22. The credit ratios stood at 0.5, 2.8, 3.3, 0.9 and 3 respectively. The agency, however, said the upgrades in the reporting period were concentrated in a few sectors.

ICRA revises outlook on Indian airport infra to stable from negative

Credit ratings agency ICRA on Thursday revised the outlook on Indian airport infrastructure to 'Stable' from 'Negative' amid expectations that passenger traffic will surpass pre-pandemic level between September this year to August next year. It also estimates that domestic passenger traffic will reach pre-COVID levels by the March quarter (Q4FY23 vs Q4FY2020) this fiscal year, while the international traffic is expected to see full recovery in the second quarter of fiscal year starting April 2023. The overall recovery in domestic traffic remained strong and is expected to recover to 97-98 per cent of pre-COVID levels in FY2023 itself, ICRA said. Driven by healthy momentum in domestic traffic as well as an uptick in international passenger traffic, overall passenger traffic is expected to witness a growth of 71-73 per cent year-on-year and reach 324-327 million (95-96 per cent of pre-COVID levels) in FY2023, according to the ratings agency. The overall passenger traffic may reach 9

Icra maintains 7.2% GDP forecast for FY23, sees pick-up in govt expenditure

Citing revival in contact-intensive services and a pick-up in government and private expenditure, rating agency Icra on Wednesday retained its previous growth forecast of 7.2 per cent for the current fiscal. Growth is expected to pick up to pre-Covid levels on the back of pent-up demand, even though on an annualised basis, the absolute numbers will be falling from Q1 (13.5 per cent) to a much lower level in Q2 and further down in the two remainder quarters due to the high base, the agency said. At 7.2 per cent, the number is marginally higher than most consensus forecast of 7 per cent and 10 bps lower than what S&P forecast earlier this week. The RBI is widely believed to again lower its growth forecast at its September 30 monetary policy review from the previous projection of 7.2 per cent. "We maintain our GDP forecast of 7.2 per cent for FY2023, aided by a revival in contact-intensive services owing to pent-up demand, and a back-ended pick-up in government and private capex. ...

NBFCs' recovery to be hit after RBI action against M&M Financial Services

Moreover, as lenders will not deploy their own staff for such activity, their operation costs may go up, said experts

Renewable Energy Development Agency to issue tenor bonds to raise Rs 400 cr

The state-run company has invited coupon and commitment bids from bankers and investors on Friday

Domestic air passenger traffic rose 5% to 10.2 mn in August: ICRA

Domestic air passenger traffic rose 5 per cent to 1.02 crore in August and a fast-paced recovery in the traffic is expected this fiscal on the back of normalcy in flight operations and widening vaccination coverage, according to rating agency Icra. Releasing the monthly domestic air passenger traffic data for August on Thursday, Icra further said that international traffic for Indian carriers surpassed the pre-COVID level of around 19.8 lakh by 32 per cent. "The domestic aviation industry continues to witness recovery, with domestic passenger traffic for August 2022 estimated at around 102 lakh, around 5 per cent higher compared to around 97 lakh in July 2022 and around 52 per cent higher in comparison to the domestic passenger traffic in August 2021, although it fell short by around 14 per cent, compared to pre-COVID levels i.e. August 2019," Icra's Suprio Banerjee said. Banerjee is the Vice President & Sector Head - Corporate Ratings at Icra Ltd. In the first five months of this

Manufacturing in dire straits: Output up just 1.1% compared with 2019-20

Electricity output has grown around 11%; consumer durables and non-durables have contracted 6.7% and 2.4%, respectively

Broking industry growth moderating after strong FY22, says ICRA

ICRA believes that the outlook for the brokerage industry is stable, though its revenue trajectory and profitability are expected to moderate from the FY22 levels

Margins of aluminium companies likely to contract 400-500 bps in Q2: ICRA

Operating margins of the domestic primary aluminium companies are likely to shrink by 400-500 bps sequentially in the second quarter of 2022-23 due to factors like high input costs, rating agency Icra said on Thursday. "Owing to a twin onslaught of correction in aluminium prices and elevated input costs, the estimated operating profitability of ICRA's sample set of domestic players is likely to contract sequentially by almost 400-500 bps in Q2 FY2023 compared to Q1 FY2023," Icra said in a statement. International prices of aluminium have corrected by around 38 per cent from the record high of around 3900/tonne US dollar in March. While in the first quarter of FY23 the average LME aluminium spot prices remained at USD 2,870 per tonne, the same have corrected in the second quarter of FY'23 (YTD) to around USD 2,425 per tonne. Further, the cost of power for domestic aluminium producers continued to remain high, due to lesser supply of coal linkage to non-power sectors and high price o

Profitability of domestic broking companies calms after a strong FY22: ICRA

The profitability of the domestic broking industry fell to 34 per cent in Q1FY23 from 38 per cent in the similar period last year due to geopolitical concerns and the adverse macroeconomic outlook

PFC's power drive flickering under record debt burden, govt scheme

The state-run financer for generators and distributors is struggling under a record debt burden even as it is being asked to underwrite the government's latest scheme to rescue inefficient discoms

India's current account deficit to widen to 5% in Q2, 3.5% in FY23: Icra

India's current account deficit (CAD) will widen to 5 per cent of the GDP in the September quarter due to higher merchandise trade deficit, domestic ratings agency Icra said. The trade deficit has doubled to USD 28.7 billion for August due to a 36.8 per cent expansion in imports and a 1.2 per cent decline in export earnings. "The current account deficit (CAD) is projected to widen to an all-time high of USD 41-43 billion in Q2 FY23 from the USD 30 billion expected in Q1 FY23. It is expected to widen to 5 per cent of GDP in Q2 FY23, the second highest level since Q3FY12," it said in a note. For the first two months of the quarter, the monthly average trade deficit has trended higher at USD 29.3 billion as against USD 23.5 billion in the June quarter, driven by strong domestic demand which led to a surge in the imports while exports remained subdued amid international slowdown fears, Icra said. CAD will moderate to 2.7 per cent of GDP in the second half of the fiscal, benefitting fro

ICICI Bank to raise Rs 10,000 cr via infra bonds in one or more tranches

Proceeds to be used for project financing, affordable housing

1-year median MCLR rise moderates in August, up 40 bps since June

Foreign banks have raised it the most, median rate up 90 bps; just 20-bp rise for private banks

Steel prices in India to remain under pressure over near future: Icra

Icra on Friday said it expects steel prices to remain under pressure in the country over the near future as the prices in the domestic market cannot be cushioned from the global trends. The rating agency also expects the steel demand in the domestic market to grow at 7-8 per cent in the current financial year, making the country the fastest-growing large steel markets globally this year. "We expect domestic steel prices to remain under pressure over the near term, since domestic steel prices cannot be insulated from the trends emerging in global steel markets," Icra Senior Vice-President & Group Head, Corporate Sector Jayanta Roy said. Domestic steel mills face a tough time ahead as the external environment is becoming more and more challenging in key global consumption markets. The steel demand in China, which accounted for 52 per cent of the global demand in 2021, is witnessing a decline as the economy prepares for the combined impact of the property bubble, strict zero Covid ...

Investment in cell manufacturing to exceed $9 billion by 2030: ICRA

'The annual battery demand for stationary applications is also likely to grow at a rapid pace and be substantial'

GST collections above Rs 1.4 trillion for sixth consecutive month

Mop-up increases 28% YoY in August to Rs 1.43 trillion; most big states see double-digit growth in collections