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The Economic Times

Groww reports over 300% rise in net profit at Rs 297 crore in FY24: ICRA

India’s largest broking platform by active investors more than doubled its revenue during the fiscal to Rs 2,899 crore. Despite the Tiger Global-backed stock broking platform foraying into the margin trading facility business, which would result in higher dependence on borrowings, Groww’s financial leverage is expected to remain comfortable, said ICRA.

Business Standard

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

The Economic Times

Low oil prices bright spot for Indian economy? Why is Finance Ministry feeling positive about recent reductions

The Finance Ministry's August review highlights that recent drops in crude oil prices are beneficial for India, despite concerns about potential global stock market corrections. Rating agency Icra notes improved margins for state-owned fuel firms, suggesting possible petrol and diesel price cuts. Domestic refining capacity is set to increase significantly in the coming years.

Business Standard

CPD exports to contract by 18-19%; sector outlook remains negative: Report

With continued decline in demand in key markets like the US and China, cut and polished diamond (CPD) exports are likely to decline by 18-19 per cent in 2024-25, a report said on Thursday. CPD exports are estimated to decline 18-19 per cent year-on-year to decade-low levels of USD 12.5-13 billion in FY25, led by a 13-14 per cent fall in volumes, along with the softening of average realisations by 5-6 per cent, Rating Agency Icra said in its report. According to the Icra report, CPD exports from India contracted by 28 per cent in FY24 due to the worsened global macroeconomic conditions and increased competition from lab-grown diamonds (LGD). With sustained subdued demand conditions in the two key consuming markets - the US and China - the downturn in exports continues as the industry is witnessing a 19 per cent contraction in CPD exports in the first four months of FY25. The US demand contracted due to inflationary pressures and in China on account of changing consumer preferences a

The Economic Times

ICRA forecasts decline in India’s cut & polished diamond exports to decade-low levels

ICRA forecasts India's cut and polished diamond exports to hit a decade-low of $12.5-13 billion in FY2025, marking an 18-19% year-on-year decline. The downturn is driven by weak global demand, increased competition from lab-grown diamonds, and high inventory levels. The sector outlook remains negative.

The Economic Times

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

Recent declines in crude oil prices have improved margins for state-owned fuel companies, allowing potential cuts in petrol and diesel prices by Rs 2-3 per litre. The price of imported crude oil averaged $74 per barrel in September, down from $83-84 in March. This could lead to reduced retail fuel prices if crude prices remain stable.

The Economic Times

Gold loans not impacted cash diktat; book set to cross Rs 10 lakh cr by FY25-end: Icra

Gold loans by banks and non-bank lenders are expected to surpass Rs 10 lakh crore by FY25, reaching Rs 15 lakh crore by FY27, according to Icra Ratings. Despite RBI's cash disbursement restrictions, the market has adapted well. Banks dominate agriculture gold loans, while NBFCs lead in retail gold loans.

Business Standard

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

The Economic Times

Fashion retailers likely to see up to 15 pc revenue growth in FY25: Report

Fashion retailers are expected to see up to 15% revenue growth in FY25 due to network expansion, according to Icra. Despite inflationary challenges, the segment shows a stable outlook with operating profit margins likely between 13-14%. The festive season and new store openings will drive this growth.

The Economic Times

Banks' bond issuances expected to reach all-time high of Rs. 1.2-1.3 trillion in FY2025: ICRA

Due to tight liquidity and credit outpacing deposits, banks are turning to bond markets. So far in FY2025, bond issuances have reached Rs 767 billion, a 225% YoY increase, already at 75% of FY2024's total.

The Economic Times

Slower deposit growth pushing banks to raise funds from bonds: Icra report

Banks are expected to raise up to Rs 1.3 lakh crore from bond issuances in FY25 due to slower deposit growth and higher credit demand, according to a report by Icra. Public sector banks will dominate the market, driven by an appetite for infrastructure bonds amidst tight liquidity conditions.

Business Standard

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

Business Standard

Over Rs 3 trn needed each year to reach 440 GW RE capacity by 2030: ICRA

An investment of over Rs 3 lakh crore is needed every year in the renewable energy sector to take India's installed green capacity to 440 gigawatt, Icra experts said on Friday. "We expect India to have 440 gigawatt installed capacity of renewable energy by 2030," Vikram V, Vice President & Co-Group Head - Corporate Ratings, ICRA Ltd said at a media roundtable. The estimated capacity would require incremental investment of at least Rs 3 lakh crore every year over the next five to six years, Girish Kumar Kadam, Group Head Corporate Sector Ratings at ICRA Ltd. He further said to meet the renewable purchase obligation (RPO) target of 43 per cent by 2030, the renewable energy capacity should more than double to 440 GW from the current level of 200 GW. The government's target is to have 500 gigawatt of installed renewable energy capacity by 2030. Sharing his outlook for the RE sector, Kadam said India has made significant progress in renewable energy capacity addition with a strong ...

The Economic Times

Over Rs 3 lakh cr needed each year to achieve 440 GW RE capacity by 2030: Icra

India needs an annual investment of over Rs 3 lakh crore to achieve 440 gigawatt of installed renewable energy capacity by 2030, according to ICRA experts. The sector faces challenges like energy storage and grid integration but offers significant growth potential. The EV sector is also expected to attract substantial investments in the coming years.

Business Standard

Hybrid, EVs each could have 8 per cent market share by FY28: ICRA

The share of compressed natural gas (CNG)-run cars is also expected to increase from 14 per cent in 2023-24 to 18 per cent in 2027-28

Business Line

Broker’s call: ICRA (Buy)

Yes Securities

The Economic Times

Tread cautiously while investing in thematic/sectoral funds: ICRA

Despite the substantial growth in investments into sectoral/thematic funds over the past five years, ICRA Analytics advises investors to exercise caution. Staying informed about current market trends and economic developments is crucial to making well-informed investment decisions within these funds.

Business Standard

Road projects awarding declines, competition to remain elevated: ICRA

HAM and EPC will continue to dominate project awards along with an increase in the share of BOT projects in FY 2025

Business Standard

Ashoka Buildcon receives ratings action for SPV - Ashoka Ankleshwar Manubar Expressway

From ICRA

Business Standard

ICRA ESG Ratings gives its first rating to InCred Financial Services

ICRA ESG Ratings Limited has assigned its first Environmental, Social, and Governance (ESG) rating to InCred Financial Services, a non-banking financial company. ICRA ESG received registration as a Category-I ESG Rating Provider (ERP) from the Securities and Exchange Board of India (SEBI) earlier this fiscal. ICRA ESG was formerly known as Pragati Development Consulting Services Limited (PDCSL). "InCred Financial Services Limited, a Non-Banking Financial Company (NBFC) focused on personal loans, student loans, and business loans, has been assigned a rating of [ICRA ESG] Impact 57, Moderate," said ICRA ESG Ratings Limited (ICRA ESG), a wholly-owned subsidiary of ICRA, in a release. It further said the ICRA ESG-assigned ratings help investors assess the non-financial risks and opportunities associated with entities and facilitate making better investment decisions, paving the way for a more sustainable and responsible investment landscape. These ratings also help the rated entity gai

Business Line

Domestic tractor sales report a y-o-y dip and sequential decline in August

ICRA projects the industry to grow at a modest pace of 1-4% in FY2025, supported by forecasts of an above-normal monsoon

Business Standard

Domestic steel consumption likely to see 9-10% growth in FY25: ICRA

Domestic steel consumption is likely to witness 9-10 per cent growth this financial year, rating agency ICRA said on Thursday. The demand for steel was robust in the first quarter of the ongoing financial year with consumption growing at a rate of 15 per cent on a year-on-year basis amidst competitively priced imports. "ICRA projects the domestic steel consumption growth at a healthy 9-10 per cent in FY2025," the rating agency said in a statement. Demand may record some sequential slowdown in the current quarter as it is seasonality associated with monsoon, following which government capex may display a back-ended pick up. "ICRA expects the industry to witness capacity utilisation at a decadal high of 88 per cent in spite of an all-time-high capacity addition of 15.6 MTPA (million tonnes per annum) in FY2025 as well as the surge in imports," the rating agency said. For the last three years, the steel sector is going through the fastest period of growth witnessed since the global .

The Economic Times

Domestic steel consumption to see 9-10 pc growth in FY25: ICRA

Domestic steel consumption in India is projected to grow by 9-10 per cent this financial year, according to ICRA. The first quarter saw a robust 15 per cent year-on-year growth in consumption. Despite seasonal slowdowns and rising imports, capacity utilisation is expected to reach a decadal high of 88 per cent.

Mint

IT services cos to report operating profit margin at 22% in FY25, revenue growth muted; Coforge, LTIMindree rise 4-5%

IT services companies extended gains during Tuesday's session after domestic credit rating agency ICRA estimated the sector's financials to be stable in FY25

The Economic Times

Vedanta shares gain 2% after long-term ratings upgrade from ICRA

Vedanta Share Price: Vedanta shares climbed 2% after ICRA upgraded the company’s long-term ratings. This upgrade was based on the anticipated improvement in Vedanta's credit metrics.

The Economic Times

Retirement mutual fund AUM surges 256% in 5 years: ICRA Analytics

Retirement mutual fund’s assets under management (AUM) has increased by over 256% in the last five years to touch Rs 29,903.39 crore in July 2024, as compared with Rs 8395.12 crore in July 2019.

The Economic Times

CV wholesale volume likely to grow up to 3 pc in FY25: Report

Icra had earlier estimated 4-7 per cent decline in CV volume for FY25. The change in projection is due to better-than-expected volume growth in first four months of the current fiscal and expectations of a marginal uptick in demand in the second half of the year, Icra said in a statement.

The Economic Times

Proposed changes in LCR rules to slow credit growth: Icra

Banks' liquidity coverage ratio (LCR) is set to decrease due to a rise in wholesale deposits and a decline in retail deposits, necessitating investments in high quality liquid assets. This shift could slow credit growth and keep interest rates on retail deposits high, despite anticipated rate cuts.

The Economic Times

India to benefit from the global gas supply glut: ICRA

The global liquefied natural gas market is poised to witness a notable increase in supply, which is expected to benefit India with reasonable prices. India’s gas consumption is projected to grow, supported by softer LNG prices and higher domestic production. However, challenges remain for the city gas distribution sector, particularly with the adoption of electric vehicles.

Business Standard

New mining cess may increase cost pressures for steel industry: ICRA

The power sector, which is heavily dependent on coal, may see a rise in the cost of supply by 0.6 per cent to 1.5 per cent, potentially leading to higher retail tariffs, ICRA added

Business Line

Steel companies’ margin to fall 2.50 pc on new raw material cess: ICRA

Jharkhand sets a precedent by imposing a modest increase of ₹100/tonne for iron ore and coal

The Economic Times

Enforcement of new mining cess may increase cost pressure for steel makers: Icra

Following the Supreme Court's ruling, states may impose a mining cess, potentially raising costs in the domestic steel industry. This change could compress margins for both primary and secondary producers. The power sector and primary aluminium producers, dependent on coal, may also face increased supply costs, Icra noted.

Business Standard

Discoms face financial constraints due to payment delays from govt: ICRA

The state-owned power distribution companies are facing financial constraints despite improving their aggregate technical and commercial losses, according to an Icra report. The agency has cited delays in realising payments from state government departments for power supply as one of the reasons for the constrain of discom finances and assigned a negative outlook for the power distribution segment. The all-India aggregate technical and commercial (AT&C) losses for state-owned discoms declined from 23 per cent in FY2021 to 16.5 per cent in FY2022 and further to 15.8 per cent in FY2023 due to infrastructure upgrades and higher subsidy payout. Despite this progress, losses remain particularly high at over 20 per cent for the discoms in Bihar, Jharkhand, Madhya Pradesh, Odisha and Uttar Pradesh, Icra noted. "The performance of state-owned discoms remains constrained by inadequate tariffs relative to the cost of supply, higher-than-regulator-approved AT&C losses, and a considerable

Business Standard

Revenue for Indian API companies to grow at 7-8% CAGR by 2029: ICRA

The industry is also expected to see a mild improvement in operating profit margins (OPM) to 12 to 14 per cent in financial year 2025 (FY25), from the estimated 11 to 13 per cent in FY24

The Economic Times

Revenue of domestic API firms to see 7-8 pc increase by 2029: Report

The revenue of domestic active pharmaceutical ingredients (API) producers in India is projected to grow by 7-8% annually by 2029, according to a report by ICRA. The rating agency estimates that revenues will increase from USD 13-14 billion in 2023, driven by the pharmaceutical formulations industry and factors like an aging population, rising chronic diseases, and contract manufacturing demand. The operating profit margins of API firms are expected to improve in FY2025. Despite past challenges, including volatile earnings due to rising raw material costs and supply chain issues, the industry is poised for steady growth.

Business Line

Higher sales of homes, collections to offset rise in debt in the real estate sector

Real estate developers’ collections from bookings are seen rising 19-21 per cent on year, while cash flows from operations are expected to grow 9-11 per cent: ICRA

Mint

Indian cotton spinners to grow 6-8% in FY25 on volume, capex boost; Welspun Living, Nitin Spin lead gains

Welspun Living, Nitin Spinners, among other cotton stocks extended gains after ICRA raised the FY25 growth outlook for domestic cotton spinners.

The Economic Times

Indian cotton spinning industry expected to recover in FY25: ICRA Report

ICRA predicts the domestic cotton spinning industry will recover in FY2025, with 6-8% growth driven by increased volume and mild realisation gains. Following two years of decline, improved domestic demand and stabilised exports will boost the industry. Cotton yarn prices are expected to rise slightly, supporting better profit margins and reduced leverage levels.

The Economic Times

Auto component industry to see moderate growth this fiscal: ICRA

Credit ratings agency ICRA predicts a moderate growth for the auto component industry in the coming quarters due to the Red Sea crisis, higher container rates, and shipping time. The industry is expected to see a year-on-year improvement of around 50 basis-points in FY2025, benefiting from better operating leverage, higher content per vehicle, and value additions. The industry's liquidity position remains comfortable, especially across tier-I players, supported by stable cash flows and earnings. ICRA expects the growth in revenues of the Indian auto component industry to ease to 5-7 per cent this fiscal, from the highs of around 14% in FY 2023-24.

Business Standard

Tariff hikes signal better profitability for telcos going forward: ICRA

The latest telecom tariff hikes announced by telcos can yield additional operating profits of around Rs 20,000 crore for the industry once they are fully absorbed, ICRA said on Friday. With an improved financial metrics, the industry will have the headroom to undertake deleveraging as well as fund capex for the technology upgrade, and network expansion, Ankit Jain, Vice President and Sector Head of Corporate Ratings, ICRA said. The domestic rating agency's view comes after Reliance Jio and Bharti Airtel announced they would roll out tariff hikes - in the range of 10-27 per cent - marking the first major telecom tariff increase in the industry in a span of two-and-a-half years. "The latest round of tariff hikes wherein the telcos increased the prepaid tariffs by around 15-20 per cent will provide the traction in the (Average Revenue Per User) ARPU levels and can result in additional operating profits of around Rs 20,000 crore for the industry once these hikes are fully absorbed," ICR