<p>Conditions will improve for Indian corporates next year as economic activity picks up steam post-lockdown and earnings grow on the back of widespread demand revival across sectors, Moody's Investors Service said on Wednesday.</p>.<p>Most companies' earnings will grow as demand starts to recover following a sharp slump, and financially strong companies will maintain good access to funding, but speculative-grade issuers will face challenges, it said.</p>.<p>"Broad-based demand revival and a low base in 2020 will support strong GDP growth of 10.8 per cent in India in fiscal 2022 ending March 2022, following a decline of around 10.6 per cent in fiscal 2021 – the country's first contraction in four decades,” Moody's Analyst Sweta Patodia said.</p>.<p>In 2021, conditions will improve for Indian corporates as economic activity gathers pace post-lockdown and earnings grow on the back of widespread demand revival across sectors, underpinning Moody's stable outlook for the corporates next year, Moody's said.</p>.<p>"A combination of higher earnings and reduced capital spending will support deleveraging over the next 12-18 months,” Patodia added.</p>.<p>Overall recovery will remain fragile as new infections continue to grow – although at a slower rate – and therefore new lockdowns cannot be ruled out, which would hinder consumer demand and recovery, Moody's noted.</p>.<p>It said the low-interest-rate environment and widespread credit availability will allow corporates with strong balance sheets to refinance and grow. But liquidity will be tight for financially weaker issuers, exacerbating their operating challenges.</p>.<p>Moody's rates 21 Indian corporates across five key sectors: oil and gas, telecommunications, automobile manufacturers and suppliers, steel and mining.</p>.<p>It said the outlook for the Indian corporate sector reflects its expectations for fundamental business conditions for the sector over the next 12-18 months.</p>
<p>Conditions will improve for Indian corporates next year as economic activity picks up steam post-lockdown and earnings grow on the back of widespread demand revival across sectors, Moody's Investors Service said on Wednesday.</p>.<p>Most companies' earnings will grow as demand starts to recover following a sharp slump, and financially strong companies will maintain good access to funding, but speculative-grade issuers will face challenges, it said.</p>.<p>"Broad-based demand revival and a low base in 2020 will support strong GDP growth of 10.8 per cent in India in fiscal 2022 ending March 2022, following a decline of around 10.6 per cent in fiscal 2021 – the country's first contraction in four decades,” Moody's Analyst Sweta Patodia said.</p>.<p>In 2021, conditions will improve for Indian corporates as economic activity gathers pace post-lockdown and earnings grow on the back of widespread demand revival across sectors, underpinning Moody's stable outlook for the corporates next year, Moody's said.</p>.<p>"A combination of higher earnings and reduced capital spending will support deleveraging over the next 12-18 months,” Patodia added.</p>.<p>Overall recovery will remain fragile as new infections continue to grow – although at a slower rate – and therefore new lockdowns cannot be ruled out, which would hinder consumer demand and recovery, Moody's noted.</p>.<p>It said the low-interest-rate environment and widespread credit availability will allow corporates with strong balance sheets to refinance and grow. But liquidity will be tight for financially weaker issuers, exacerbating their operating challenges.</p>.<p>Moody's rates 21 Indian corporates across five key sectors: oil and gas, telecommunications, automobile manufacturers and suppliers, steel and mining.</p>.<p>It said the outlook for the Indian corporate sector reflects its expectations for fundamental business conditions for the sector over the next 12-18 months.</p>