Page 4 - Icra

Growth of core sector output recovers to 3-month high in September

The Reserve Bank of India last month also revised its growth forecast for FY23 to 7 per cent from 7.2 per cent estimated earlier

Gold ETF flows shrink despite superior returns, shows Amfi data

Between October 2021 and September 2022, gold prices rose over 9.5 per cent even as ETF inflows shrunk to a half

CEOs of Indian companies get nearly 4% compensation hike in FY22

According to members of nomination and pay committees of several blue-chip corporations, there is a growing trend of linking CEO salaries to results and performance

13 states can incur capex worth Rs 7.4 trillion in FY23: ICRA report

Spending space available without pressure to their fiscal profile, says agency

13 major states have room for Rs 7.4 trn capital spending in FY23: Icra

As many as 13 major states, including West Bengal, Tamil Nadu and Gujarat, have a massive fiscal space of Rs 7.4 lakh crore for capital spending in the current fiscal, 81 per cent higher than the last fiscal, Icra said on Thursday. The 13 states, having nearly 85 per cent share in India's GDP in 2020-21, had made a capital expenditure of Rs 4.1 lakh crore last fiscal. Their Budget estimate for capex spending this fiscal is Rs 5.8 lakh crore, the rating agency added. The agency's analysis is based on 13 states -- Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal. "Icra estimates that the 13 state governments have the fiscal space to incur capital spending of as much as Rs 7.4 trillion in FY2023, rivalling the size of the GoI's capex budgeted for this fiscal. While the availability of funds doesn't appear to be a constraint in FY2023, the actual outgo incurred by these state ...

Financial status of Indian airlines likely to remain under pressure: ICRA

The financial performance of Indian airlines is likely to remain under pressure in the near term, even as recovery in domestic passenger traffic has been healthy, said Corporate Rating firm 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