Search Result for : Icra

The Dollar Business Bureau The Goods and Services Tax (GST) will have adverse impact on the oil and gas sector as it will have to conform to the current tax regime as well as to GST, the ICRA-ASSOCHAM report said. The GST regime is expected to be rolled out from July 1, 2017. The next meet of GST Council is to be held on June 18, in which it will decide upon the lottery tax and e-way bill. “The oil and gas industry would have to comply with both the current tax regime as well as the GST regime leading to double compliance cost because five petroleum products viz crude oil, natural gas, motor spirit, high-speed diesel and aviation turbine fuel have been excluded from the GST, while other ...

The Dollar Business Bureau Domestic steel mills may benefit from lower iron ore and coking coal costs in the current year but sustained weakness in demand still remains a concern, ICRA said. The ratings agency in a report said, "Sustained demand weakness remains a concern for the domestic steel industry with a growth of mere 4.6% and 2.6% in FY2016 and FY2017 respectively due to sluggishness in key end-user industries. "Weak demand conditions have led to a correction in domestic hot rolled coil (HRC) prices by 7% in May 2017." The report also specified that the seaborne iron ore prices have corrected by 36% between February and May of 2017 dragged down by a correction in Chinese steel prices, steadily rising iron ore ...

The Dollar Business Bureau As per the measure of revenue passenger kilometres (RPK), a unit used to measure passenger volume, International Air Transport Association (IATA) reported that India’s domestic passenger traffic, during the month of March 2017, grew at the slowest rate since September 2015. “China overtakes India as the fastest growing domestic market,” the monthly report stated. Monthly air passenger market analysis report released by the international association, recorded a robust 7% first quarter global growth in passenger demand, which is well ahead of the long-run average of around 5.5%. However, the report cited the reasons for slow demand growth in India to be the ‘reduced cash supply’ and ‘wider economic uncertainty’. To add to this sombre result, ICRA’s report further dulled the ...

The Dollar Business Bureau ICRA, in its new report, predicts that the limited duty-free import of sugar allowed by the Government of India will not help ease sugar prices, which have been rising owing to a 19% cut in output this year. The sugar output in the current year is forecasted at 20.3 million tonnes (mt) while the annual domestic sugar demand is pegged at 24 mt. The government expects a comfortable supply of sugar in the country after adding last year's closing stock of 7.7 mt and an additional import permit of 0.5 mt. Nevertheless, the report released by ICRA says that the sugar prices will stay firm as the closing stock will drop to 4.5 mt – 5 mt this year, which is only sufficient to meet demand for two months into the ...

The Dollar Business Bureau Even though sugar demand is expected to decline by 3%-4%, prices are likely to firm up due to record low production estimates in the current year. A prolonged drought in the sugar producing regions of Maharashtra, Karnataka and Tamil Nadu; the second, third and fourth largest sugar producing states of India respectively; has caused productivity to take a serious hit. Indian Sugar Mills Association (ISMA) estimates a 40% - 50% decline in the yield from sugarcane fields during the season ending September 2017. The state of Maharashtra, which had produced 84.2 lakh tonnes of sugar in the previous season, is estimated to contribute merely 42 lakh tonnes to the nation's sugar output in the current season. This is deemed to be the lowest recorded output for the ...

The Dollar Business Bureau The exports of Basmati rice from India is expected to touch Rs.22,000–Rs.22,500 crore in financial year 2017-18 and the volume to about 4.09 million tonne primarily supported by a growth in average realisations, said the credit rating agency ICRA Ltd in a report on Wednesday. “We expect the export volumes in FY17 to be around 4 million tonne (almost similar to the volumes in FY2016). However, muted average realisations are expected to keep the value of these exports to under Rs.21,000 crore, against Rs.22,718 crore in FY16,” said Deepak Jotwani, Assistant Vice President, ICRA to PTI. “In FY18, the value of exports is likely to grow to Rs 22,000–22,500 crore, with export volumes growing to around 4.09 million tonne and ...

The Dollar Business Bureau   Credit Rating agency ICRA has downgraded IDBI Bank’s various debt instruments, in the backdrop of weak financial results of the bank in the third quarter of the current fiscal. The October-December quarter result of the IDBI Bank has resulted in a considerable erosion of its common equity tier I (CET 1). In order to stay afloat, the Bank would need capital infusion of Rs.9500 – Rs.10,000 crore by the end of 2016-17. Last week, IDBI Bank’s board members held a meeting to consider a plan to sell its non-core assets to raise capital for the bank. Meanwhile, the government which owns 74% stake in the bank is expected to infuse about Rs.3000 crore. ICRA downgraded ratings for IDBI Bank’s Rs.25,742.72 crore ...

PTI Impacted by note ban, retail inflation fell to multi-year low of 3.17 per cent in January and may prompt the Reserve Bank to have a re-look at its hawkish monetary stance in the next policy due in April. Retail inflation has declined because of the impact of cash crunch following demonetisation of old Rs 500 and Rs 1000 notes with effect from November 9, 2016, experts said. In its policy last week, RBI retained the benchmark interest rate and changed the stance from 'accommodative' to 'neutral', indicating that there won't be any rate cut in near term. It may however have to review its policy stance in the wake of retail inflation touching multi-year low in January. ...