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Some of the ongoing deals in the transport and logistics sectors “would get significantly re-assessed” after the government cut the corporate tax rates on Friday, ratings firm Crisil has said.
“The positive step will provide great fillip to the Indian companies, especially in the infrastructure sector, as most of them are engineering, procurement and construction (EPC) contractors. The associated benefit to government would be better valuations on asset monetisation and lower outgo in case of construction contracts,” said Jagannarayan Padmanabhan, Practice leader and Director-Transport and Logistics, Crisil Infrastructure Advisory.
This move will also indirectly benefit banks as developers would get additional headroom to service their debt, he said.
Large Indian companies were finding it increasingly unviable to operate and were diluting their portfolios to international investors. This move will bring them some relief and some of the ongoing deals would get significantly reassessed, he added.
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