Though the government has been claiming that its economic stimulus package is worth 10 percent of GDP or Rs 20.9 lakh crore, analysts have pegged it at just 0.8 - 1.2 percent of the GDP.
According to official data, India consumed 100 million tonne of steel during financial year ended March 2020.
The profitability of the industry would also be adversely impacted in the ongoing fiscal due to lower revenues and high fixed costs, which is 35-42 percent of the total cost of airlines.
After keeping the country under a 40-day lockdown to arrest the spread of coronavirus, the government extended the lockdown till May 17 with a slew of relaxations to the unaffected areas in order to kick-start economic activity.
According to the agency, electricity consumption from high tariff paying industrial and commercial consumers has significantly declined due to the lockdown.
ICRA has assigned risk levels to industries and entities.
The industry incurred large net losses due to sharp decline in demand, realisation and profitability and rumours circulated in social media, linking poultry birds as possible vectors of the virus, further leading to the demand drop and hence realisations, ratings agency ICRA said in its report.
The domestic logistics sector is likely to witness a 6-8 per cent decline in the current fiscal on account of COVID-19 outbreak, rating agency ICRA said on Wednesday.
ICRA said it has a negative outlook on the PV sector given the adverse impact and credit profile of industry participants which include suppliers as well as dealerships.
The revenue loss for NHAI operated toll plazas is estimated at Rs 821 crore, while the compensation to BOT Concessionaires under force majeure (political) event is estimated at Rs 1,001 crore, Icra said in a statement.
The office leasing segment will be relatively less affected in the near term.
The ICRA, on Thursday said that the de-growth was largely driven by higher airfares in the wake of large scale flight cancellations following shutting down of Jet Airways and overall sluggishness in demand.
However, as the coronavirus impact subsides and activities come back to normalcy, strong order flow under the National Infrastructure Pipeline, focus on infrastructure, and lower execution impediments should help in recovery, Icra added.
The Reserve Bank of India had imposed a moratorium on the private sector lender last month and announced a scheme of reconstruction for the bank. Under the scheme, the RBI said the additional tier 1 bonds would have to be written down permanently. The moratorium on the bank was lifted on March 18.
ICRA in a report said that it expects high operating leverage, discounted sales to clear inventory backlog and bad debts to result in a shrinkage of their profit margins.
In its annual credit quality review after the end of the fiscal year, ICRA said it downgraded Rs 7 lakh crore of debt in FY20, as against Rs 3 lakh crore in the year-ago period, driven largely by actions against financial sector companies.
ICRA said committed collections receivable from sales may get impacted as milestone based payments get deferred and homebuyers delay payments on account of economic uncertainties,
Icra said rating downgrades factor in the moratorium on the bank and the cap on payments to its depositors.
Following the coronavirus outbreak in China, the export HRC (hot rolled coil) prices have witnessed a 6 percent fall since mid-January due to a slowdown in China's steel consumption, leading to weaker economic activities, Icra said.
In the first nine months of FY20, the production at 247.4 million tonnes is marginally higher by 0.7 percent as compared with the corresponding period of the previous financial year.
Existing phases or new launches are being reconfigured or designed with a focus on lower unit prices, the ICRA report said.
SEBI has sent new show-cause notices for higher penalty with Rs 1 crores with uses of section 15 (I) last week.
The Centre by law has to pay the states at 14 per cent annually for the first five years of the GST regime and the government had earlier projected an 18 per cent growth in collections for this year, while the same has been tepid at a little over 5 per cent till January.
Supported by capital infusion and increased provisioning on stressed loans, we expect the remaining PSBs to also exit the prompt corrective action framework of the RBI and most of them to turn profitable in FY2021.
The expected growth in the next financial year is on the back of healthy demand from the domestic market given increasing spend on healthcare along with improving access, Icra said in a statement.