IMF hails RBI's recent policy actions

The International Monetary Fund (IMF) has welcomed the Reserve Bank of India (RBI)’s decision to raise repo rates by 40 basis points (bps). Shanaka Jayanath (Jay) Peiris, the lead author of the IMF’s Asia and Pacific Outlook told Indivjal Dhasmana of Business Standard that going forward, monetary policy will need to respond nimbly, including through well-communicated expectations about the trajectory of inflation and the path of policy rate actions to address any second-round inflationary effects. He also cautioned that any large movements in global equity markets from a sharper-than-expected tightening in the advanced economies would have implications for equity outflows from India. Peiris further stated that although India has fiscal space in the near-term, it would need to implement a medium-term fiscal consolidation strategy to help improve the trade-off between near-term macroeconomic stabilisation and medium-term fiscal sustainability. Commenting on exports, the IMF official said that they foresee the export growth to continue. However, the expansion will be less pronounced than it was projected before the war in Ukraine broke. The spillovers from the war in Ukraine are projected to substantially reduce external demand growth in Europe, which is an important destination for India’s exports.

References
1. https://www.business-standard.com/article/economy-policy/imf-asia-and-pacific-outlook-monetary-policy-must-respond-nimbly-to-second-inflation-round-jay-pereis-122050900452_1.html
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.3 -1.9
Consumer Sentiments Index
Base September-December 2015
69.5 +0.5
Consumer Expectations Index
Base September-December 2015
69.4 +0.4
Current Economic Conditions Index
Base September-December 2015
69.7 +0.7
Quarterly CapEx Aggregates
(Rs.trillion) Jun 21 Sep 21 Dec 21 Mar 22
New projects 2.89 3.14 3.46 4.89
Completed projects 0.73 1.28 2.76 1.05
Stalled projects 0.33 0.28 0.06 0.29
Revived projects 0.14 0.39 2.06 0.28
Implementation stalled projects 0.64 0.25 0.65 0.07
Updated on: 16 May 2022 3:28PM
Quarterly Financials of Listed Companies
(% change) Jun 21 Sep 21 Dec 21 Mar 22
All listed Companies
 Income 42.3 27.5 23.5 19.8
 Expenses 41.9 26.7 21.7 17.4
 Net profit 139.8 55.1 31.9 45.7
 PAT margin (%) 9.0 9.6 9.0 11.4
 Count of Cos. 4,556 4,677 4,690 905
Non-financial Companies
 Income 61.0 35.7 29.3 27.6
 Expenses 62.6 36.0 29.0 27.9
 Net profit 192.7 59.7 18.3 25.7
 PAT margin (%) 8.4 8.8 7.5 10.3
 Net fixed assets 4.9 -2.1
 Current assets 10.8 19.0
 Current liabilities 0.8 12.5
 Borrowings 12.1 7.1
 Reserves & surplus 12.4 9.5
 Count of Cos. 3,330 3,382 3,402 637
Numbers are net of P&E
Updated on: 16 May 2022 3:28PM
Annual Financials of All Companies
(% change) FY20 FY21 FY22
All Companies
 Income 0.5 -0.9 16.1
 Expenses 0.3 -3.3 16.7
 Net profit -4.9 72.5 24.3
 PAT margin (%) 2.0 4.5 12.3
 Assets 8.9 9.6 3.3
 Net worth 4.6 11.5 5.2
 RONW (%) 3.4 7.0 12.4
 Count of Cos. 32,202 29,546 46
Non-financial Companies
 Income -1.3 -2.0 16.2
 Expenses -1.0 -4.1 17.4
 Net profit -20.8 63.1 20.8
 PAT margin (%) 2.2 4.2 11.1
 Net fixed assets 11.2 1.3 8.5
 Net worth 2.2 10.4 8.3
 RONW (%) 4.7 8.0 15.8
 Debt / Equity (times) 1.2 1.0 0.1
 Interest cover (times) 1.9 2.5 26.6
 Net working capital cycle (days) 81 84 38
 Count of Cos. 25,551 23,301 36
Numbers are net of P&E
Updated on: 12 May 2022 7:22AM