India Inc revenue growth to slip to 7-year low: Crisil

Our Bureau Mumbai | Updated on January 23, 2018 Published on April 09, 2015

Capital goods sector to see 13% fall in revenues

Crisil Research on Thursday said that it expects India Inc’s revenue growth to slip to a 7-quarter low of 2.5 per cent on a year-on-year basis in the March 2015 quarter.

“The weak performance of investment-linked sectors and low global commodity prices will more than offset the moderate growth anticipated in export-oriented sectors and consumer-driven sectors,” Crisil said in a statement.

In the preceding quarter as well, revenue growth was a tepid 5.4 per cent. Prasad Koparkar, Senior Director, Crisil Research, said, “The year started on a promising note, with revenue growing by 12.8 per cent in the first quarter of FY15. However, growth has decelerated in subsequent quarters with Q4 likely to show the lowest growth.”

Steel, petrochemicals, and manmade fibre manufacturers will be impacted by the rapid slide in global commodity prices.

Sluggish growth in volumes (2 per cent y-o-y) would constrain the revenue growth of cement companies, while capital goods manufacturers are likely to see a further 13 per cent y-o-y fall in revenues.

Domestic consumption and export-oriented sectors are likely to outperform but, here too, sectors heavily dependent on rural consumption such as motorcycles, tractors, and FMCG have been facing severe pressure on volumes as unseasonal rains and slow growth in crop prices have dented farm incomes.

This would impact topline growth for companies in these sectors.

Published on April 09, 2015
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