Page 6 - Icra

GDP growth likely to slip to 6.5%, FY25 growth estimate at 7%: ICRA

Domestic rating agency Icra on Wednesday said India's real GDP growth for the September quarter is likely to decline to 6.5 per cent due to heavy rains and weaker corporate performance. The agency, however, maintained its FY25 growth estimate at 7 per cent on expectations of a pick up in economic activity in the second half of the fiscal. The estimates and commentary on the outlook come at a time when there are concerns around the growth slowdown on a slew of factors like slowing down urban demand. The RBI is sticking to its estimate of 7.2 per cent growth for the fiscal, but a majority of watchers expect it to be under the 7 per cent figure and many have been revising down in the last few weeks. Official data for the Q2 economic activity is expected to be published on November 30. In Q1, the GDP expansion had come at 6.7 per cent. Icra said the dip in Q2 will be due to factors like heavy rains and weak corporate margins. "While government spending and kharif sowing have shown ..

India's renewable energy capacity to touch 250 GW mark by March 2026: Icra

Domestic renewable energy capacity is expected to reach the 250 GW level by March 2026, Icra said on Tuesday. The capacity addition will be driven by the large project pipeline of over 80 GW, following the significant improvement in tendering activity in FY2024, the rating agency said. In a note, Icra said it expects the installed renewable energy capacity, including large hydro projects, in India to increase to about 250 GW by March 2026 from the level of 201 GW as of September 2024. "We expect the rooftop solar segment and the commercial & industrial (C&I) segments to contribute significantly to the capacity addition. Nevertheless, challenges remain on the execution front with respect to delays in land acquisition and transmission connectivity, which, if sustained, could hamper the sector's prospects," Girishkumar Kadam, Senior Vice President & Co-Group Head - Corporate Ratings at Icra, said. ICRA expects the energy storage capacity requirement at 50 GW by 2030, which ...

Icra cuts PV factory dispatch outlook down to 0-2% on high inventory level

Rating agency Icra on Monday revised downwards the outlook for passenger vehicle factory dispatches to showrooms in the current fiscal on acccount of high inventory levels. Despite good retail sales, a year-on-year growth of 6 per cent in April-October FY2025 partially on account of an early festive season, the high inventory levels for the industry curtailed wholesale volume growth, as per a report on the domestic automotive industry by the domestic ratings agency. "ICRA has thus revised the outlook for the wholesale volume growth for the industry in FY2025 downwards to 0-2 per cent," it added. The rating agency had earlier pegged PV wholesale growth at 3-6 per cent for 2024-25 fiscal. Retail sales of passenger vehicles during the festive season grew at a moderate pace of 6 per cent year-on-year to 6.5 lakh units, aided by attractive discounts and competitive financing rates. ICRA also revised the outlook for the wholesale volume growth for the industry to 11-14 per cent in FY202

CIEL to file papers for Rs 450-cr IPO on Friday, will be 2nd listed HR firm

Public offer expected to comprise a fresh issue of around Rs 350 cr and an offer for sale by earlier shareholders

BS BFSI Summit: Economists prioritise local inflation over Fed policy

Nayar emphasised the importance of local inflation factors like food and rent on inflation expectations

Urban demand situation may affect firms' capex plans: Icra MD & Group CEO

The volatility in inflation still remains substantial and interest rates are not expected to come down, weighing on private capex

Core sector grows 2% in September; refinery and cement lead gains

For the first time in 42 months, the output of the core sector has contracted (-1.6 per cent) during August.

Data centre capacity to more than double to 2,100 MW by FY27: ICRA

India's data centre capacity is expected to reach 2,000-2,100 megawatts (MW) by FY2027, with anticipated investments of Rs 50,000-55,000 crore fuelled by digital boom and data localisation efforts, according to credit rating agency Icra. The current capacity stands at 950 MW, with major players like NTT Global Data Centers, CtrlS Data Centres, STT Global Data Centers, Sify Technologies and Nxtra Data controlling 85 per cent of the market (as of March 2024), Icra said in a statement. Icra Vice President Anupama Reddy said the surge in data generation and the push for data localization are driving a transformative shift in India's data centre landscape. "The low data tariff plans, access to affordable smartphones, adoption of new technologies and growing user base of social media, e-commerce, gaming and OTT platforms are some of the key triggers for data explosion," she said. Moreover, artificial intelligence (AI) led demand, which is expected to increase multi-fold in the next 3-5 .

Expect Indian apparel exporters to post 9-11% revenue growth in FY25: ICRA

Indian apparel exporters are expected to register a 9-11 per cent revenue expansion in FY25 aided primarily by gradual liquidation of retail inventory in key end markets and a shift in global sourcing to India, ratings agency ICRA on Monday. The long-term prospects for Indian apparel exports are favourable, aided by enhanced product acceptance in end markets, evolving consumer trends and a boost from the government in the form of the production-linked incentive (PLI) scheme, export incentives, the proposed free trade agreement with the UK and the EU, among others, ICRA said in a statement. The expected growth this fiscal follows a tepid performance in FY24 when exports were affected because of high retail inventory, sluggish demand from the key end markets, supply chain issues, including the Red Sea crisis and heightened competition from neighbouring countries, it added. With the revival in demand, ICRA said it expects the capex spending to increase in FY2025 and FY2026 and may stay

CRISIL gains 8% on 13% growth in Sept quarter net profit; Rs 15 dividend

CRISIL's consolidated net profit in Q3 2024 rose by 12.86 per cent Y-o-Y to Rs 171.55 crore

Combined capex of state govts to undershoot FY25 budget estimates: ICRA

According to ICRA, the total revenues of the sample states are expected to rise by 10 per cent in FY25 compared to the previous year, well below the 18 per cent growth projected in the FY25 BE

1.1 mn old medium, heavy CVs offer good potential for scrappage: ICRA

Around 1.1 million medium and heavy commercial vehicles (M&HCVs), older than 15 years as of March 31 this year, offer a significant potential for scrappage, ratings agency ICRA said on Tuesday. While the actual scrappage could possibly be lower given the nature of usage of such vehicles, even if a proportion of these vehicles gets scrapped, it can support vehicle sales to some extent by spurring replacement demand, it said. The Voluntary Vehicle Fleet Modernisation Programme or the Scrappage Policy, announced in March 2021, is being implemented in phases, with effect from April 1 last year. While the first phase of the policy proposed to mandatorily scrap government vehicles older than 15 years, the second phase, which started on June 1 this year, mandates scrapping on the basis of fitness of the vehicle rather than age, and as such, is more voluntary in nature. ICRA also projects an additional around 5.7 lakh vehicles to cross the 15-year age threshold by March 2027, along with ..

Indian alcoholic beverages to see up to 10% revenue growth in FY25: ICRA

Alcoholic beverages (alcobev) companies in India are expected to report a revenue growth of 8 to 10 per cent in this financial year supported by a revival in consumption of spirits, according to a report by rating agency ICRA. The growth in the topline will also be helped by the premiumisation trend, it added. Moreover, "revenue increase in FY2025 will additionally be supported by the price hikes granted by a few state governments in the current fiscal," it said. However, operating profit margin (OPM) is expected to remain stable at 12-13 per cent in FY2025 due to decline in packaging material cost, despite increase in grain prices in H1 FY2025. "During Q1 FY2025, the spirits industry reported a 9 per cent year-on-year increase in revenues, supported by 5-7 per cent improvement in realisations, while volumes grew by 2-4 per cent," it said. Even the beer industry witnessed a higher revenue growth of 12 per cent in Q1 FY2025 owing to 3-5 per cent increase in volumes and 7-9 per cent

Domestic road logistics industry revenues likely to grow up to 9%: ICRA

The domestic road logistics industry is expected to register a growth of up to 9 per cent in revenues in the ongoing 2024-25 financial year, according to Icra. The organised road logistics sector had witnessed a growth 4.6 per cent in the 2023-24 fiscal year, the ratings agency said in a report. As per Icra, the industry logged a revenue of Rs 23,273 crore in FY24. "Icra expects the revenues of the Indian road logistics industry to grow by a moderate 6-9 per cent year-on-year (y-o-y) in FY25," it said. The agency further said it also maintains a stable outlook for the sector, fuelled by various government measures and policies in favour of the sector on expectations of good demand outlook from segments like e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods. Srikumar Krishnamurthy, Senior Vice President & Co-Group Head Corporate Ratings, Icra Ltd, said, "In FY24, the growth was subdued on account of a relatively muted demand amid high inflation, an uneven .

Core sector contracts 1.8% in a first in 42 months, shows govt data

The contraction can be attributed to a high base as well as monsoon impacting industrial activity. The growth in the output was 6.1 per cent in July 2024 and 13.4 per cent in August 2023

Indian pharma companies set to see 9-11% growth in FY25, says Icra

The domestic market is expected to see a positive turnaround, with ICRA projecting revenue growth of 7-9 per cent for its sample set of companies in FY25

Headroom to slash petrol, diesel prices by Rs 2-3 per litre: Icra

A reduction in crude oil prices in recent weeks has improved margins on retail auto fuels, providing state-owned firms a headroom to cut petrol and diesel prices by Rs 2-3 per litre, rating agency Icra said on Thursday. The price of a basket of crude oil India imports averaged USD 74 per barrel in September, down from about USD 83-84 a barrel in March when petrol and diesel prices were last cut by Rs 2 per litre. In a note, Icra said the marketing margins on retail sales of auto fuels for the Indian Oil Marketing Companies (OMCs) have improved in recent weeks with the reduction in crude prices. The rating agency anticipates that there is headroom for the downward revision of retail fuel prices if crude prices remain stable at current levels. Girishkumar Kadam, Senior Vice President and Group Head, Corporate Ratings, ICRA, said: "ICRA estimates that the OMCs' net realisation was higher by Rs 15 per litre for petrol and Rs 12 a litre for diesel vis--vis international product prices i

Fashion retailers may see up to 15% revenue growth in FY25: Report

Fashion retailers are likely to record revenue growth of up to 15 per cent in FY25 on the back of network expansion, according to a report by ratings agency Icra. The network expansion of fashion retailers would support revenue increases in the current fiscal year despite inflationary headwinds, said Icra, while giving a "stable outlook" on the fashion retail segment. "The operating profit margin (OPM) of its sample set of companies is likely to remain in the range of 13-14 per cent in FY2025. This is despite a robust 14-15 per cent YoY (Year-on-Year) revenue growth estimated for the year, supported by network expansion," it said. Icra expects fashion retailers to report marginal sequential sales growth in Q2 FY2025, especially with the shift from the festive season to Q3 this year. "The revenue growth is likely to pick up during the festive season, which coupled with regular network expansion, is expected to result in a 14-15 per cent YoY revenue expansion in FY2025," it said. Th

Bank bond issuance likely to touch Rs 1.2 trn level in FY25 : Report

Infrastructure to command about 66% share in issuance, according to ICRA

EPCs may have opportunities worth Rs 2.6 trn over next decade: ICRA

Projects worth ₹80,000 crore are estimated to be awarded in the next four years