India Strategy - FY21 Listed Space Capex Resilient Relative To ‘Investment Rate’: ICICI Securities
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ICICI Securities Report
In the immediate pre-pandemic period of FY20, ‘nominal investment rate’ dipped to 28.8% while the share of ‘non-financial corporations’ in the overall gross fixed capital formation was relatively weak at 46% as compared to the five-year average (FY15-20) of 48.3%.
In the pandemic year of FY21, the ‘nominal Investment rate’, dipped further to 27.1% which translates into a 9% dip in gross fixed capital formation to Rs 53.5 trillion.
However, capex in the listed corporate space was relatively better with cash spent on ‘plant property and equipment’ falling by 6.6% YoY to Rs 5.1 trillion in FY21 while including acquisitions and investments in subsidiaries it was flat YoY at Rs 5.6 trillion.
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