The steep tariff hikes of up to 50% being implemented by telecommunication companies1 (telcos) have the potential to double the industry’s EBITDA2 next fiscal. This is a structural positive for an industry weighed down by weak cash flows and mounting debt.
Non-bank growth to hit a decadal low of 6-8% this fiscal
The trifecta of constrained funding access with rising borrowing costs, re-calibration and de-risking of loan book and a slowing economy is set to beat down growth in assets under management (AUM) of non-banks – comprising non-banking finance companies and housing finance companies – to a decadal low of 6-8% this fiscal, compared with ~15% last fiscal.
Cotton yarn spinners stare at 200-400 bps margin squeeze
Operating margin of domestic cotton yarn spinners is expected to shrink 200-400 basis points (bps) on-year in fiscal 2020 owing to a narrowed spread1 between cotton and yarn prices as compared to last fiscal.