Rising commodity prices are set to hurt margins of India Inc in the on-going fourth quarter of FY 11, even though revenues are seen higher than the previous year, ratings agency Crisil said on Monday.
Home sales in the top 10 cities - Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune - have declined at a compound annual growth rate of 8% since 2011.
Brent crude oil price surged 4 per cent on Friday, following tension between Iran and the US. Airlines, however, have been unable to pass on the price increase to customers due to the soft demand.
According to the study spanning 11 key sectors, aggregate industrial investments would continue to grow despite the current economic slowdown amid expectations of a relatively muted GDP growth. The study stated that aggregate industrial investments would grow at a moderate pace over the next three years, with total investments projected at Rs 10,50,000 crore.
The higher outlay for the Commonwealth Games would aid the hotel sector in faster execution of the projects in the NCR region.
According to latest data, crops have been sown in around 72.13 million hectares, which is 8.90 per cent less than the same period last year.
On the flipside, since 60-70 per cent of the costs pertain to raw material, which are mostly imported, currency fluctuation is a key risk for the segment.
Equities registered their sharpest ever and most rapid decline in 2008, reflecting global market conditions and concerns over a slowing domestic economy.
According to Crisil, home prices had fallen by 18 to 20 per cent in March 2009, from the highs seen in the first half of 2008, due to the global slowdown, fears of job security and slowing growth in the domestic economy, the report said. 'However, despite this drop in capital values, home buyers have adopted a 'wait and watch' policy,' the report added.
According to the report, export-oriented sectors like IT services, pharmaceuticals and textiles will, in aggregate, report EBITDA margin expansion of nearly 100 bps, while margin is likely to decline by about 50 bps for other sectors during this period.
The number of base stations installed by Indian wireless operators is inadequate to provide high-quality services to the growing number of mobile subscribers, said a research.
According to Crisil Research, the average room rates in cities like Chennai, Hyderabad and Bangalore are likely to fall 5-10 per cent in the next few months. Industry experts said the occupancy rates could fall from 75-80 per cent now to 65-70 per cent soon.
The present home loan non-performing asset figures of banks understate the extent of delinquency in the sector as loans given in the last three years
As even bigger road construction players are not willing to bet on BOT projects., NHAI will have to rethink its thrust on the BOT model.
The earnings are, however, expected to be down around 2 per cent on a sequential basis due to pent-up demand getting exhausted and the adverse impact of rising metals and energy prices on consumer goods and manufacturing companies.
If more commodities which have seen a sharp rise in MSP are to be procured, such as pulses, oilseed and cereals, there could be a storage problem. Also, if state-owned Cotton Corporation of India joins in, this problem will aggravate.
After the easing of lockdown in mid-May, auto companies were able to resume production in a phased manner, but the ramp-up was slow due to a broken supply chain, and lockdown-induced restrictions.
Many developers are facing financial challenges after the IL&FS defaults, after which non-banking finance companies - the major financiers to real estate firms - slowed disbursals.
The report mentioned that the government spends 2.2 per cent of the GDP on pension bill.
The industry's operating margins will narrow by 0.30- 0.80 per cent largely on an increase in local hires which the industry has been forced into due to the policy framework in its markets.
Huge demand for dry bulk commodities such as iron ore, coal, and grain has helped the Index touch a five year high recently.
SpiceJet COO says ATF price cut is need of the hour.
With little clarity on the demand outlook, investors should wait out the next couple of quarters rather than rush in to catch a falling knife, says Ram Prasad Sahu.
The return of private investment now struggles with lack of funds and election-driven uncertainty.
Rating agency Crisil said corporates, especially those in the auto, aviation, consumer durables and oil sectors, will be "severely impacted" by rupee depreciation due to large overseas debt and limited hedging.
If you have been planning to buy a house, don't postpone your purchase. Developers are offering discounts, freebies and attractive payment plans.
Recent rates cuts by most banks may not have a significant impact on margins, say analysts.
While home-grown firms like Tata and Mahindra have been actively participating in the government's e-mobility mission, by launching electrified versions of their existing models, the global firms believe electric is not the best solution for a country where the primary source of power generation is coal, and where infrastructure is a big impediment.
According to research by IHS Markit, for an ecosystem still grappling with infrastructure issues -- the high cost of EVs and a greater OEM (original equipment manufacturer) focus on electrifying two-wheelers and commercial vehicles first -- the share of such vehicles is expected to be 4 per cent by 2030, reports Pavan Lall.
With RIL supplying about 47 per cent of the domestic petcoke production, current dynamics are bound to change.
In the past month, wheat prices have increased 6.3% as production is expected to be 1.5% lower, in terms of crop acreage, than the earlier estimate
By 2013, the Chinese economy had become 2.7 times India's.
RJio will further add bottomline pressures on the already struggling telcos that will ultimately be forced to consolidate
Domestic airlines on Thursday welcomed the 12.5 per cent cut in jet fuel prices, terming it as a much-needed relief but ruled out any immediate reduction in fares.
Retail inflation inches up to 3.77%; IIP growth dips to 3-month low
Our focus around technology, cost efficiency, persistency and effective distribution channel will continue, says the ICICI Bank MD and CEO.
The country's mutual fund industry posted five per cent growth in average assets under management (AUM) to touch all-time high of Rs 8.68 lakh crore in May on the back of strong inflows into money market and income funds.
Crisil said a complete phase out of CST is necessary.
On an average most commodities are up between 20-30 per cent compared to a year ago levels.
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