India Inc. delivered an expectedly weak performance during Q2 FY2020, reeling under the impact of continued weakness in consumer sentiments and general slowdown in the economy.
An ICRA analysis of Q2 FY2020 financial results of 609 companies in the Indian Corporate Sector (excluding financial sector entities) showed a Y-o-Y and sequential contraction in revenues for the first time in almost four years with aggregate revenues contracting by 0.9 per cent on a Y-o-Y basis.
During the same period, the EBITDA margin contracted by 32 bps on a Y-o-Y basis, and by 100 bps sequentially to 16.7%. The major impact on revenues came from commodity-linked sectors, revenues from which contracted by 5% on a Y-o-Y as well as sequential basis. Consumer sentiment too continued to remain muted, as reflected in Y-o-Y contraction of 1% in revenues from consumer-oriented sectors.
Additionally, demand from the infrastructure segment was down, due to extended monsoons, slow release of funds from the government, cancellation of orders and marginal decline in housing demand.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.