Urban demand situation may affect firms' capex plans: Icra MD & Group CEO

The volatility in inflation still remains substantial and interest rates are not expected to come down, weighing on private capex

While the financial health of rated companies is expected to remain robust, firms are hesitant to start capital expenditure, Ramnath Krishnan, managing director and group chief executive, Icra, tells Abhijit Lele in a video interview. Volatility in inflation still remains substantial and interest rates are not expected to come down. Edited excerpts.

 

We are in the busy season. Given the growth momentum, what is the assessment about capital expenditure and the outlook? 

Expenditure, particularly in the private sector, is yet to go up significantly. Plans are being drawn up and some plans are getting deferred. A few days ago JSW