Active Stocks
Tue Mar 19 2024 15:01:05
  1. Tata Consultancy Services share price
  2. 3,985.40 -3.84%
  1. Tata Steel share price
  2. 149.25 -0.23%
  1. Bharti Airtel share price
  2. 1,229.90 0.40%
  1. Power Grid Corporation Of India share price
  2. 259.65 -2.02%
  1. ITC share price
  2. 409.50 -1.89%
Business News/ Companies / News/  Not time to build yet for Indian companies
BackBack

Not time to build yet for Indian companies

Low capacity utilization, subdued demand, a higher number of stalled projects, stressed balance sheets, a pile of bad debt with state-run banks and the global slowdown will continue to weigh on corporate capex

Corporate capital investment is estimated to decline by 13%, year-on-year, in FY17 and FY18, each compared with the 5% decline estimated in FY16, according to Religare Institutional Research. Premium
Corporate capital investment is estimated to decline by 13%, year-on-year, in FY17 and FY18, each compared with the 5% decline estimated in FY16, according to Religare Institutional Research.

Indian companies are not expected to return to capital investment mode soon. Corporate capital investment is estimated to decline by 13%, year-on-year, in FY17 and FY18, each compared with the 5% decline estimated in FY16, according to Religare Institutional Research.

The capex analysis was done across the cement, power, metals, oil and gas, auto and fast-moving consumer goods—or FMCG—sectors for 50 listed companies.

Low capacity utilization, subdued demand, a higher number of stalled projects, stressed balance sheets of companies, a pile of bad debt with public sector banks and the global slowdown will continue to weigh on corporate capex.

It’s a long road ahead.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 07 Mar 2016, 12:57 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie