India Strategy - Combined Capex On Track To Exceed Rs 21 Trillion In FY23: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Private corporates’ capex in the listed space nudged up further to an all-time high of Rs 7 trillion on a trailing twelve-month basis versus Rs 6.4 trillion in FY22 driven by capital intensive industrial corporates. Combined government capex has risen to an all-time high of Rs 12.3 trillion on a TTM basis (Centre Rs 7 trillion and states Rs 5.3 trillion) and is likely to exceed Rs 14 trillion in FY23E going by Budget estimates and current trends. Central capex includes special assistance as loans to states for capex (Rs 1 trillion) which so far has seen sub-par spending going by the overall loans disbursed under the ‘capital expenditure ‘head. Cash flow from operation/capex ratio for listed corporates dips to 1.5 times as capex and working capital requirement picks up while CFO is also impacted by a sharp drop in realisations and cost pressures for commodity companies (oil marketing companies, metals, cement and other industrials). Declining CFO/capex ratio will eventually result in rising demand for industry credit as expanding capex and working capital requirements will no longer be fulfilled by internal cash generation..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Strategy - Combined Capex On Track To Exceed Rs 21 Trillion In FY23: ICICI Securities

Combined government capex has risen to an all-time high of Rs 12.3 trillion on a TTM basis.

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