1. ‘India Inc’s Q3 topline may witness lowest rise in six quarters’

‘India Inc’s Q3 topline may witness lowest rise in six quarters’

India Inc’s revenue growth is expected to slip to a six-quarter low of 7 per cent on a year-on-year (y-o-y) basis in the December 2014 quarter.

By: | Mumbai | Published: January 9, 2015 8:36 AM

India Inc’s revenue growth is expected to slip to a six-quarter low of 7 per cent on a year-on-year (y-o-y) basis in the December 2014 quarter.

This tepid show will be due to weak performance of investment-linked sectors, stable currency exchange rates impacting topline growth of export-oriented sectors, and weak global commodity prices, says a study by rating agency Crisil.

Revenue growth was around 9 per cent in the preceding quarter and 13 per cent in the December 2013 quarter. On the profitability front though, the Crisil study has forecast a marginal uptick in profit margins.

Capital goods manufacturers, continuing to grapple with weak order inflows, are likely to report a 9 per cent y-o-y decline in revenues.

While construction companies will report a slight uptick in topline growth, “IT service providers are expected to report 10-11 per cent revenue growth y-o-y (in dollar terms) in Q3, similar to the growth recorded in each of the  preceding 6 quarters”, Crisil said.

Among domestic consumption-oriented sectors, automobile revenues are forecast to grow at 7 per cent, propelled by higher domestic sales of commercial vehicles. Others forecast to report above average topline growth include FMCG, telecom (spike in data usage), and pharmaceuticals.

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