1/3 large firms not to switch to new tax regime; none planning new capex or pay higher dividends: Crisil survey

Mumbai: A third of India Inc is yet to decide on whether to shift to the newer corporate tax regime offering lower outgoes, and those planning to switch have no plans to pump the gains into capex investments, given the plunging demand, finds a survey. Two-thirds of the 850 companies surveyed by rating agency Crisil … Read more1/3 large firms not to switch to new tax regime; none planning new capex or pay higher dividends: Crisil survey

Credit woes in India seen pressuring Modi to take more action

By Rahul Satija A $20 billion tax cut and the lowest borrowing rates in almost a decade may not be enough to bolster the credit metrics of Indian firms, top raters in the country say, putting pressure on policymakers to take additional steps to kick start the flagging economy. “A meaningful and broad-based improvement in … Read moreCredit woes in India seen pressuring Modi to take more action

Banks set for a profit quarter despite slumping credit demand

MUMBAI: Domestic banks are likely to register an increase in quarterly profits on the back of earnings from treasury gains and steadying net-interest margins, even as credit growth is set to remain moderate due to slowing demand across various pockets of the consumption economy. Furthermore, slower-than-expected recovery of stressed accounts may impact banks that had … Read moreBanks set for a profit quarter despite slumping credit demand

IRCTC’s strong business model makes its IPO a good long-term investment

ET Intelligence Group: Longterm investors can consider subscribing to the initial public offering (IPO) of government-owned Indian Railway Catering and Tourism Corp (IRCTC). IRCTC has high cashflow, return on capital employed (over 20 per cent) and dividend payout (45 per cent in FY19). Its dominant market share in railway e-ticketing (over 70 per cent in … Read moreIRCTC’s strong business model makes its IPO a good long-term investment

Corporate tax cut to help top 1,000 firms save Rs 37,000 cr: Crisil

NEW DELHI: Around 1,000 companies would save nearly Rs 37,000 crore due to recent corporate tax rate cut, according to a Crisil report on Sunday. A study of nearly 1,000 companies, spread across 80 sectors, which cover over 70 per cent of the National Stock Exchange’s market capitalisation indicates that effective tax rates had risen … Read moreCorporate tax cut to help top 1,000 firms save Rs 37,000 cr: Crisil

India’s sugar exports to pick up 20% due to subsidy, says Crisil Research

PUNE: Sugar exports, estimated at 3.8 MT for SS 2019, are expected to rise to 4.5-5 MT in SS 2020, given the lump sum export subsidy announced. For SS 2019, the government had granted raw material subsidy of Rs 139 per tonne of sugarcane for sugar exported, along with a transport subsidy of Rs 1,000-3,000 … Read moreIndia’s sugar exports to pick up 20% due to subsidy, says Crisil Research

CRISIL cuts GDP growth to 6.3% in fiscal 2020

Rating agency CRISIL on Wednesday cut India’s fiscal year 2020 GDP growth forecast to 6.3% from its earlier forecast of 6.9%, after the economy grew 5% in the first quarter, it’s slowest in almost 6 years. The agency said that lower GDP growth forecast corroborates that India’s economic slowdown is deeper and more broad-based than … Read moreCRISIL cuts GDP growth to 6.3% in fiscal 2020

Apparel retailers expect to revive sales in festive season

India’s leading apparel retailers are expecting a revival in sales in the festive season on backdrop of low business for over three quarters now. Arvind Fashions CEO J Suresh said while consumption trend and sentiments are weak for more than three quarters, but festival demand is always robust in India and it should be the … Read moreApparel retailers expect to revive sales in festive season

Payment Security norm to strain weak Discoms’ financials

KOLKATA: Power ministry’s directive, asking all distribution companies to open and maintain sufficient letters of credit as payment-security mechanism may lead to an additional working capital requirement for all state distribution companies since it will shorten the prolonged credit periods that discoms have enjoyed by deferring dues to generators, CRISIL has estimated. It will also … Read morePayment Security norm to strain weak Discoms’ financials

IL&FS’ rating agencies made professional compromises, says Grant Thornton

Mumbai: ILFS directors had tried to keep many ratings in “private”, push rating officials to softens ratings, even influenced them to change the language in rating rational and occasionally inflated numbers in fishing for better ratings. The 105-page Grant Thornton (GT) report accessed by ET details out anomalies, issues of professional compromises and corporate governance … Read moreIL&FS’ rating agencies made professional compromises, says Grant Thornton

Grant Thornton submits forensic audit to IL&FS management

MUMBAI: Bankrupt IL& FS Thursday said it has completed the first phase of the forensic audit on credit rating agencies that were engaged with its various group companies in the last one decade. The Uday Kotak-led board of the group had appointed Grant Thornton to conduct forensic audit. The audit evaluated the role of the … Read moreGrant Thornton submits forensic audit to IL&FS management

SBI says it continues to lend to NBFCs

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MUMBAI: Amid the growing fears of defaults by non-banking finance companies, the largest lender State Bank of India Friday said it will continue to funds to the sector as it feels the problems facing the industry are not very grave and system-wide. The bank does not consider the crisis plaguing the shadow banks are grave … Read moreSBI says it continues to lend to NBFCs

Stocks of credit rating agencies likely to remain under pressure: Analysts

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The role of credit rating agencies has been under the spotlight given the recent liquidity crisis that has hit the finanial sector. While they can remain under pressure in the short-run given these developments, analysts remain optimistic on their long-term prospects. The optimism stems from the new set of guidelines set forth by the market … Read moreStocks of credit rating agencies likely to remain under pressure: Analysts

Air freight demand may touch 1.1 mt by 2025: Report

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The domestic air freight demand is expected to touch 1.1 million tonne by the fiscal 2025 at a compounded annual growth rate (CAGR) of 7-9 per cent propelled by rapidly growing e-commerce activity, increasing capacity and improving airline connectivity to smaller cities, according to a research note. However, cargo capacity of airlines is expected to … Read moreAir freight demand may touch 1.1 mt by 2025: Report

Crisil, ICRA Give Lowest Rating To DHFL’s Commercial Paper

Crisil, ICRA Give Lowest Rating To DHFL

Ratings agencies ICRA and Crisil downgraded Dewan Housing Finance Corp Ltd’s (DHFL) commercial paper to their lowest ratings on Wednesday after the lender missed certain payments on bonds due this week. This was Crisil’s fifth rating cut on the company’s paper this year and ICRA’s fourth, highlighting the problems in shadow banking sector that has … Read moreCrisil, ICRA Give Lowest Rating To DHFL’s Commercial Paper

SFIO and IL&FS board probing why rating co ignored analyst’s concerns

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The Ministry of Corporate Affairs (MCA) and the new board at IL&FS are investigating why questions raised by a junior analyst at a rating agency about financial irregularities at the infrastructure financier were ignored by the top management at the creditworthiness evaluator. The junior executive has allegedly told probe officials that when he brought his … Read moreSFIO and IL&FS board probing why rating co ignored analyst’s concerns

With India’s economy growing at about 7%, why the auto industry is hurting so badly?

Rajesh Goel should be celebrating. He managed to steer clear of the headwinds currently battering India’s auto industry and clock impressive March numbers for Honda Cars India (HCIL), where he is director for sales and marketing. Honda Cars posted sales growth of 27% in March, and for 2018-19, it reported sales uptick of 8%, the … Read moreWith India’s economy growing at about 7%, why the auto industry is hurting so badly?

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