India Ratings & Research

The AAP government's freebies push in Punjab will have the state, which already is one of the most fiscally stressed states, missing the fiscal targets by a wide margin yet again this fiscal, shows an analysis. According to an India Ratings' analysis of the Punjab budget for FY24, the Bhagwant Mann government will likely close the year with a fiscal deficit of Rs 33,216 crore which is a whopping 5.3 per cent of GSDP or gross state domestic product from the budgeted Rs 23,835 crore or 3.8 per cent in FY24. This comes on top of the state closing the previous year with a 5 per cent fiscal deficit. The Centre allows a state to borrow annually only 3 per cent of its GSDP and an additional 50 bps more on meeting certain reforms in the power distribution and public transport sectors. Punjab's fiscal stress will continue even in the medium-term and will remain one of the fiscally most stressed states, says Sunil Kumar Sinha, the senior director at the agency. This is because the state's .

Sustained deleveraging, continued revenue, profitability growth boost rating

RBI has raised policy repo rate by 250 basis points in stages to 6.5% in February 2023

Economic recovery has not yet become broadbased and sustainable as only creamier sections are consuming, India Ratings and Research said on Wednesday and added that the FY24 budget is expected to continue with social sector spending. The annual budget for the financial year 2023-24 will be presented in parliament on February 1. Finance Minister Nirmala Sitharaman will focus on making consumption demand resilient, boosting infrastructure and manufacturing capex, skill development and increasing productivity, fiscal consolidation and climate change in the last budget of this government, the agency said. It said there is likely to be a "stark difference" between economic performances of the first and second halves of FY23, which will suggest that it is only the upper layers which are driving the private final consumption, the agency said. "Anecdotal evidence suggests that the gap between have and have nots has widened. ...various social welfare schemes such as PM-KISAN and MGNREGA wil

The ratings agency said it estimates investments, as measured by gross fixed capital formation (GFCF), to grow 8.7 per cent YoY in FY23

The firm has indicated that its near-term operational performance would likely be in line with initial FY20 earnings. During the year, it had a revenue of Rs 2,052 cr

ANDAs granted have halved in H12021, compared to pre-pandemic levels

India Ratings and Research expects the gross state domestic product (GSDP) of all states in India to contract in FY21

Ratings have been cut for 847 companies

Meanwhile, CRISIL has cut estimates of India's FY21 economic growth rate to 1.8% from earlier 3.5%

High iron ore premiums for new mine owners both captive and merchant could shift the cost positions of steel mills, it said

Slippages ratio for FY20 pegged at 3.5 per cent a tad lower than previous year's 3.7 per cent, but MSMEs, agri and retail are segments that could see fresh stress

The labour productivity growth in FY19 was 5.2 per cent

The company has also deferred capex at its Baytown facility in the US by around USD 240 million of the announced USD 500 million.

India Ratings revises outlook for NBFC sector to negative; growth to be 10-12%

Highly sensitive sectors such as oil & gas, metal & mining, airlines have huge unhedged exposures