Page 20 - Icra

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

SBI and ICRA see economy growing in double-digits in June quarter

Low base, robust recovery in contact-intensive services sector to boost expansion

Banks' AT-1 bond issuances may decline to Rs 20,000 cr in FY23: Report

The issuance of Additional Tier-1 (AT-1) bonds by banks is likely to more than halve to Rs 20,000 crore this fiscal compared to the all-time high amount of Rs 42,800 crore raised in FY22, says a report. AT-1 bonds are those debt instruments without a terminal maturity date. In FY22, a majority of the funds raised through the instrument were to refinance bond issues done in FY17, Icra Ratings said in the report on Monday. Majority of the bonds have a call option in the fifth year, resulting in the significant jump in new issuances which are basically for refinancing the earlier obligations. The issuances in FY17 stood at Rs 32,100 crore for the state-owned banks and Rs 10,900 crore for private sector lenders. In FY18, the amounts stood at Rs 10,900 crore and Rs 23,500 crore, respectively, Icra said. According to the report, lenders have already refinanced the FY18 bonds because of the lower interest rates in FY22. Lenders have already raised Rs 5,320 crore from the instrument in t

AT1 bond issuances likely to fall to around Rs 200 bn in FY2023: Icra

The additional tier 1 (AT1) bond issuances are likely to fall sequentially to around Rs 200 billion in FY2023, from an all-time high of nearly Rs 428 billion in FY2022

'High ATF prices, rupee depreciation may pose threat to carriers' recovery'

Elevated Aviation Turbine Fuel (ATF) prices and Rupee depreciation are likely to pose a serious threat to the recovery process for domestic carriers, credit ratings agency ICRA said on Wednesday. In India, ATF accounts for around 45 per cent of the operational cost of an airline. Besides, as much as 35-50 per cent of the airlines' operating expenses are US dollar driven, as per ICRA. An area of concern remains the ATF prices, which surged by around 77 per cent Y-o-Y in August, given the elevated crude oil prices due to geo-political issues arising from the Russian invasion of Ukraine, the ratings agency said. On an aggregate basis, it said a return to normalcy will lead to recovery in passenger load factors, which, in turn, will aid revenues; however, these two factors will continue to weigh on the domestic airlines'' earnings in FY23. This apart, the expected launch of Jet Airways and the entry of Akasa Air, are likely to intensify the competition for the domestic carriers. "ICR

Interim wage hike likely to hit margins of West Bengal tea estates: Icra

The impact would be lower for producers of quality tea, given the price premium they enjoy over the average market realisations, Icra said in a report.

Credit rating of Rs 35,000 cr debt could be lowered due to RBI diktat: Icra

Power, healthcare, engineering, construction, and roads sectors account for 60% of the total entities whose ratings could potentially be affected

New credit rating rules could see 100 Indian ICRA-rated firms downgraded

The companies likely to be affected are mostly in the power, healthcare, engineering, construction and roads sectors