Although increasing input prices will impinge on near-term profitability of auto original equipment manufacturers (OEMs), they are likely to benefit from recent price hikes over the medium term as input prices normalise, according to India Ratings and Research (Ind-Ra).
The reduction in steel import duty under the Union Budget 2021-22 proposal will not have any material impact on commodity prices as domestic steel prices, despite being at peak levels, are still below the landed import prices.
In terms of value, metals cost directly account for 8 to 16 per cent of revenues on parts like body, chassis, powertrain, engine components and wheel rims. Additionally, metals are used in certain other components, child parts and sub-assemblies, which is difficult to quantify.
Meaningful economic recovery not in sight until FY23: Ind-Ra ANI | Updated: Feb 12, 2021 11:36 IST
New Delhi [India], February 12 (ANI): Although economic recovery in coming financial year beginning April 1 (FY22) on a year-on-year basis will be V-shaped, the size of GDP will barely surpass the level attained in 2019-20 (FY20) and be 10.6 per cent lower than trend value, according to India Ratings and Research (Ind-Ra).
The impact of Covid-19 pandemic and lockdown on the economy (although subsiding now) will continue to delay normalisation of economic activities in contact-intensive sectors till the mass vaccination and herd immunity becomes a reality, it said.
Ind-Ra estimates the GDP growth will bounce back to 10.4 per cent year-on-year in FY22, primarily driven by the base effect. After recording negative growth during 9M FY21, GDP growth will finally turn positive at 0.3 per cent in 4Q FY21.
Budget FY22 should focus on resolving demand-side issues: Ind-Ra ANI | Updated: Jan 22, 2021 14:53 IST
So far, the government s major focus to revive COVID-19 battered economy has been on the supply side. But it is high time to change gears and focus on the demand side as well, lest the ongoing recovery begins to lose steam.
Ind-Ra said there is nothing wrong in addressing supply-side issues as it indeed was needed to restore and augment the broken supply chain especially in an economy where micro, small and medium enterprises play an important role in terms of generating employment and output.
However, the absence of adequate demand may jeopardise recovery and may even lead to a second-round impact.
Ind-Ra assigns PRESPL BBB-minus with stable outlook ANI | Updated: Jan 12, 2021 14:54 IST
Mumbai (Maharashtra) [India], January 12 (ANI): India Ratings and Research (Ind-Ra) has assigned Punjab Renewable Energy Systems Pvt Ltd (PRESPL) a long-term issuer rating of BBB-minus with a stable outlook.
The company operates in biomass industry which is a carbon-neutral source of energy. It is supported by various government initiatives for reducing carbon emissions and lowering the dependence on non-renewable resources.
Its consolidated revenue was modest despite improving to Rs 34.2 crore in FY20 due to the improved sale of steam which constituted 69 per cent of total revenue. During 7M FY21, the company achieved a revenue of Rs 32 crore with 40 per cent contribution from the sale of steam.
Mumbai (Maharashtra) [India], January 12 (ANI): India Ratings and Research (Ind-Ra) has assigned Punjab Renewable Energy Systems Pvt Ltd (PRESPL) a long-term issuer rating of BBB-minus with a stable outlook.
The company operates in biomass industry which is a carbon-neutral source of energy. It is supported by various government initiatives for reducing carbon emissions and lowering the dependence on non-renewable resources.
Its consolidated revenue was modest despite improving to Rs 34.2 crore in FY20 due to the improved sale of steam which constituted 69 per cent of total revenue. During 7M FY21, the company achieved a revenue of Rs 32 crore with 40 per cent contribution from the sale of steam.