ICRA REPORT
June retail inflation may remain unchanged at 4.7%
India's retail inflation likely remained steady at 4.7% in June, consistent with May's 4.75%, according to a poll of 10 economists by ET. The forecast range was 4.5% to 5.19%, driven by heatwaves, below-normal monsoon rains, and higher fruit and vegetable prices. The government will release the CPI data on July 12. Economists noted that festive demand and weather conditions raised vegetable prices, particularly onions and tomatoes. The Monetary Policy Committee is expected to maintain its stance until monsoon outcomes and food inflation impacts are clearer, with potential rate cuts anticipated no earlier than December 2024.
Domestic air passenger momentum to continue this fiscal, says report
The aviation industry outlook remains stable with continued recovery in air passenger traffic. Despite challenges like grounded fleets and supply chain issues, airlines are expected to face a net loss of Rs 3,000-4,000 crore in FY2025.
Indians like to have a swig of premium beer
Premium beers significantly outpaced the overall beer market in FY24, with a 25-30% volume growth compared to the 8-10% growth of the beer category. Bira91's Taproom pubs in Ludhiana are finding success with flavored premium beers, challenging stereotypes in Punjab. Companies like United Breweries and AB InBev are capitalizing on the trend, with the Indian beer market projected to reach Rs 62,240 crore by 2028, driven by premiumization and changing consumer preferences.
Cement sector sees marginal growth of 2-3 pc in Q1FY25: Icra
The cement sector experienced a modest 2-3 per cent growth in Q1 due to a slowdown in construction during the Lok Sabha polls, but FY2024-25 is expected to see a 7-8 per cent increase driven by infrastructure and housing demand. Top players are set to consolidate, expanding capacity and improving operating profits by 1-3 per cent from softened raw materials prices. Cement makers are also increasing green power usage to reduce emissions by 15-17 per cent in the coming years.
Tariff hikes signal better profitability for telecom industry going forward: ICRA
Bharti Airtel and Reliance Jio announced significant tariff hikes, impacting consumers. The industry is set to experience improved financial metrics and operating profits, allowing for deleveraging and funding capex. ICRA forecasts strong industry revenue growth and debt level moderation, with expectations of enhanced Return on Capital Employed for FY2025.
Bank of Maharashtra to issue tier-II bonds, bankers say
The bonds have a call option at the end of five years. Here is the list of deals reported so far:
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Birla Group cements lead, Adani plans taking shape
According to industry observers, the competition for leadership in the cement sector is expected to escalate following the Adani group's announcement of ambitious expansion plans. Currently, however, the Kumar Mangalam Birla group appears to have strengthened its position by acquiring a 23% stake in India Cements, thereby increasing its presence in the largest regional market in India, which boasts one of the highest per capita income.
Three state insurers may get Rs 5,000-cr infusion for revival
The Indian government may delay the planned privatisation of state-run general insurers, instead focusing on strengthening three insurers - Oriental Insurance Co. Ltd, National Insurance Co. Ltd, and United India Insurance Co. Ltd - through capital support and business revival plans. The government is expected to infuse about ₹5,000 crore into the insurers this fiscal, shelving any privatisation plan this fiscal.
Thermal plant load factor to remain healthy at 70 pc in FY'25 on power demand growth of 6 pc: ICRA
ICRA projects a stable outlook for the thermal power segment with a 70% thermal plant load factor expected in FY2025, driven by 6% power demand growth.
Banks, NBFCs well placed to seize opportunity from India's strong economic prospects: ICRA
Loan growth is expected to moderate over the next year as banks seek to align their loan growth in line with deposits, as deposits are not growing as fast as loans. Loan growth will reduce to 12% -14%, from 16% last year.
Stocks in news: IndiGo, Go Digit, Castrol India, IOL Chemicals, Wipro
Domestic markets stabilize post-elections. IndiGo stake sold. Go Digit reports profit. Wipro rolls out Lab45 AI Platform. Icra receives demand order. NHPTL approves share transfer. TCS launches IoT lab. IOL Chemicals gets CEP certificate. Castrol MD change. TVS signs contract.
IndiGo, Air India upgrade playbooks to keep up with India's rising middle class
India's rising affluence is driving a significant shift in the lifestyle of the middle class, with a growing preference for premium products and experiences, both on the ground and in the sky. Airlines are capitalizing on this trend by offering luxurious amenities to cater to the surging demand, such as roomier seats, gourmet meals served on designer tableware, and lavish vanity kits.
RBI MPC Meeting: Das & Co may look at food bills to keep its stance, rate unchanged
RBI Policy Meeting: The Reserve Bank of India (RBI) is expected to maintain the repo rate at 6.5% with a focus on withdrawing accommodation, marking the eighth consecutive time it remains unchanged. Economists predict the unchanged stance, citing persistent inflation in food prices and global commodity price risks. RBI Governor's decision is crucial post-elections.
Domestic air passenger traffic grows 5.1 pc to about 138.9 mn in May: ICRA
In May, domestic air passenger traffic grew 5.1% YoY to 138.9 million, 14% higher than pre-Covid levels, as per Icra. The Indian aviation industry outlook is stable with a continued recovery in passenger traffic and stable cost environment, expecting the trend to continue in FY2025.
'Acche din' to continue for FD investors as high fixed deposit interest rates will not drop soon: All eyes on RBI MPC on June 7
The Reserve Bank of India (RBI) will likely keep the repo rate unchanged in the upcoming monetary policy committee review. The question now is how long will the high-FD rate regime continue. Also, what should be the best strategy for your short-term and long-term fixed deposits? ET Wealth Online spoke to experts and here's all you need to know.
Icra revises domestic steel demand growth rate to 10 pc for FY25
ICRA revises FY2025 steel demand growth to 9-10% due to strong government spending and sector demand, leading to increased earnings and India remaining a net steel importer in the current fiscal.
At 5.6% of GDP, FY24 fiscal gap beats target
In absolute terms, the FY24 fiscal deficit stood at ?16.54 lakh crore, down from the revised estimate of ?17.35 lakh crore and FY23 level of ?17.38 lakh crore, showed the official data released on Friday. A lower-than-anticipated deficit in FY24 and a generous surplus transfer by RBI earlier this month make the government's goal of reining in fiscal gap at 5.1% of GDP in FY25 seem more realistic now, experts said.
Economists project continued economic momentum and stability after India reports robust GDP growth in Q4
India's economy experienced a 7.8% growth rate in the January-March quarter, surpassing expectations due to strong performance in the manufacturing sector. The GDP growth in the fourth quarter of FY24 was slightly lower than the revised 8.6% growth in the previous quarter. Economists are optimistic about sustained momentum throughout the year, with the gap between GDP and gross value added (GVA) expected to normalize from the second quarter of FY25.
Oxyzo FY24 operating revenue up 59% to Rs 903 crore, net profit at Rs 290 crore
Oxyzo Financial Services, the lending arm of OfBusiness, reported a 59% increase in operating revenue to Rs 903 crore for FY24. The company raised $200 million at a unicorn valuation from investors like Alpha Wave Global. Ruchi Kalra leads Oxyzo, which has a net worth of Rs 2,600 crore.
Cement industry in India consolidating, market shares of top companies growing: ICRA
Large cement companies are expanding capacity through organic growth and acquisitions, driven by strong demand. Market share of the top five firms rose to 54% in 2023 and is expected to reach 55% by 2025. Consolidation, especially in eastern and western regions, enhances cost efficiency. ICRA's outlook for the sector remains stable.
General insurers expect premium income growth of 32 pc to Rs 3.7 lakh cr by FY26: Report
The industry's GDPI saw a robust 15.5 per cent year-on-year (YoY) expansion in 2023-24, rising to Rs 2.79 lakh crore on the health segment, it said. Apart from this, the report said that the growth in the motor segment was healthy, supported by the increase in new vehicle sales (two-wheelers, or 2W, rose by 13.3 per cent YoY and passenger vehicles, or PVs, by 8.4 per cent YoY in 2023-24).
Indian economy likely grew at a 4-quarter low in Q4: ICRA
Economists predict India's economy to grow at a four-quarter low of 6.7% in Q4FY24. The growth in 3 FY24 was 8.4%. Agricultural GVA is likely to contract for 2nd straight quarter, amid rabi output concerns. Overall GVA growth expected to ease to 5.7% in Q4, driven by industrial and services sectors. ICRA forecasts FY2024 GDP and GVA growth at 7.8% and 7.0%, respectively.
Creditors' haircuts in bankruptcy cases jump to 73 pc in FY24, resolutions taking longer: Report
Creditors' haircuts in bankruptcy resolutions rose to 73% in FY24 from 64% in FY23. 269 resolution plans were approved by NCLTs, with a decline in new admissions due to Covid-19. The average resolution time also increased, impacting CIRPs and entities. NCLT passed liquidation orders for 446 corporate debtors in FY24.
ICRA predicts moderate credit flow in FY25, bond issuance likely to rise to Rs 10.6 lakh crore
The incremental credit flow was also supported by the all-time high corporate bond issuances of Rs. 10.2 lakh crore in FY2024, resulting in the stock of corporate bonds outstanding rising to an estimated Rs. 46 lakh crore as on March 31, 2024, from Rs. 43.1 lakh crore as on March 31, 2023.
Domestic air passenger traffic likely touched 15.4 crore in 2023-24: Report
The aviation industry expects a 13% growth in domestic air passenger traffic to 15.4 crore in 2023-24 with a reduced net loss. Supply chain challenges and engine failures pose near term headwinds.
Domestic drug firms to witness 8-10 pc revenue growth in FY25: Report
Following the high base of 2023-24, the revenue growth momentum from the US and Europe markets is expected to moderate to 8-10 per cent and 7-9 per cent, respectively, Icra said. The markets are expected to witness a year-on-year expansion of 18-20 per cent and 16-18 per cent, respectively, in the current fiscal year, it added.
Local alcobev industry to grow at 8-10 pc in FY25, margins to expand: Report
Indian-made foreign liquor (IMFL) companies are expected to witness 11-13 per cent revenue expansion supported by a preference towards premium products amid volume growth of 3-5 per cent on a high base of FY2024, the report by rating agency ICRA said.
Indian airlines expected to report lower net loss of Rs 3,000-4,000 crore this fiscal: Report
Among other things, the Indian aviation sector has also been grappling with supply chain challenges and issues related to Pratt & Whitney (P&W) engines.
Supply chain challenges to hit aircraft deliveries for Indian airlines: Report
Indian airlines are facing supply chain challenges and engine failure issues, potentially impacting aircraft deliveries to domestic airlines. The country has a total order book of around 1,700 aircraft, more than double the current fleet size. Icra predicts gradual deliveries over the next decade, influenced by supply chain issues and OEMs.
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