CRISIL

Coal and diesel are the major inputs used in the sector. After rising by an average Rs 10-15 per bag since August, a rise by another Rs 15-20 is likely over the next few months, ratings agency Crisil said. Besides, earnings before interest, tax, depreciation, and amortisation (EBITDA) of cement makers is expected to decline by Rs 100-150 per tonne in FY22.

Overall revenue growth would be primarily supported by price hikes driven by costlier commodities. On-year volume growth would be mostly in single digit across key segments except commercial vehicles. To be sure, growth momentum would have slowed compared with the 47 per cent on-year increase seen in the first quarter.

Accordingly, the trend is expected to be driven by price hikes effected across product categories to offset the impact of raw material price increase and a raft of other favourable factors. Besides, the agency said that operating margin, on the other hand, will be restored to the normal level of 19-20 per cent with a moderation of 80-100 basis points (bps) this fiscal due to increase in advertising expense and rise in raw material prices.

As per Crisil's website, the capability of entities graded CRISIL 'GVC Level 1' with regard to corporate governance and value creation for all stakeholders is 'excellent'. Last month, the telco had reported a net profit of Rs 759 crore for the January-March quarter. Its revenues for the period under review rose 17.6 per cent to Rs 25,747 crore.

The improvement was driven by supply-chain efficiencies, higher exports, and captive mines that limited the impact of iron ore shortage. Their capacity share is expected to rise this fiscal after JSW's Dolvi plant expansion of 5.6 million tonne comes on stream, the report added.

As per an analysis of 25 Crisil-rated glass-makers, revenues are expected to be driven up by 12 per cent on-year in fiscal 2022. Besides, the recovery, already visible since the second half of fiscal 2021, is expected to continue in this fiscal, albeit some headwinds of the second wave of Covid-19 in the first quarter of the current fiscal.

The second wave of the pandemic, slowdown in project execution, and labour migration are expected to curb the performance of these companies in the first quarter of this fiscal sequentially. The slowdown, however, will be less severe on-year because activities had ground to a halt amid a nation-wide lockdown in the first quarter of last fiscal, the ratings agency said.

It said that base GDP growth forecast for fiscal 2022 at 11 per cent, with risk firmly tilted downwards. As per the report, the GDP growth rate may drop to 9.8 per cent, if the second wave peaks by May-end and if the peak is reached by June-end, the GDP growth rate is likely to fall to 8.2 per cent. It further said that India Inc's revenue growth is projected at 15 per cent for fiscal 2022 on a low base of two years in base case.

Hospitals could be among the biggest beneficiaries as the incremental funding can potentially increase bed capacity in the country by 15-20 per cent, the ratings agency said. Loans under the scheme, for tenures up to 3 years, are available to banks at the repo rate till March 31, 2022. Such loans would also be classified under priority sector.

"In India, the impact of state-announced restrictions are more clearly showing up across high-frequency indicators - they all trended down for the second consecutive week," it said. Retail mobility fell 8.2 percentage points (pp) on average in the week ending May 2, while workplace mobility slowed 7.1 pp.