Highways business changing structurally: Vinayak Chatterjee, Chairman, Feedback Infra
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Last Updated: May 25, 2021, 07:08 PM IST
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We are now finding that there is a limit to how much you can expand existing alignments because they go through very crowded clusters. So the new focus is on greenfield expressways. If you see the Mumbai-Pune under Mr Gadkari, that was one of the first examples of a greenfield expressway.
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Do you feel that rural demand particularly has been hampered which will affect the recovery?
Vinayak Chatterjee: There is clear evidence that the rural demand is not as buoyant as it was in the April, May, June, July period of last year, and remember it was buoyant largely because there was a slew of special packages that were given to the rural sector including a step up in the MNREGA in rural, small infra works, special packages all those have not been seen now. And therefore from sales of tractors to retail demand for cemen
As Coronavirus lurks, Indians save wealth for health
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Companies and financial experts said that prospective customers are diverting funds that could have gone into the purchase of discretionary items toward unforeseen emergency and health-related expenses.
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Indian consumers, both urban and rural, are storing cash for emergency medical needs, deferring big-ticket discretionary expenses through the surging covid wave that is taking a toll on lives and livelihoods.
Companies and financial experts said that prospective customers are diverting funds that could have gone into the purchase of discretionary items toward unforeseen emergency and health-related expenses.
Through the first wave last summer, several consumer appliances moved from the ‘discretionary’ bucket to the ‘essentials’ category, said Kamal Nandi, business head, Godrej Appliances.
The government’s push on infrastructure along with sustained demand courtesy affordable housing has turned analysts bullish on the cement sector. Besides, expectations of further price hikes, to ensure sustainability of the current hikes, further alleviate their concerns on sustenance of margins amid rising cost pressures. Factoring-in an above-average demand growth of 9 per cent CAGR over financial year 2021-23, coupled with and limited new supply (4.6 per cent CAGR), analysts at global brokerage Morgan Stanley have raised their FY23 earnings estimates by up to 13 per cent, driven by better realization/margin assumptions. “Valuation (on EV/EBITDA) is not cheap, but with improving growth visibility and return ratios, multiples tend to overshoot long-term averages, and investors focus should shift to two-year forward EV/EBITDA and free cash flow (FCF) yield, which are still attractive,” notes Gaurav Rateria, equity analyst at the brokerage in a co-authored report with Muku
Companies including Hindustan Unilever, Marico, Britannia and Parle said reverse migration along with govt initiatives boosted rural income but urban centres growth is still either below pre-Covid level or significantly below hinterlands.
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