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India Ratings and Research (Ind-Ra) in its latest analysis report based on ‘the Q1FY24 results of 3,323 listed companies’ has showed a continued year on year (YoY) fall in revenue growth, a declining trend in coverage indicators and steady operating margins across most sectors.

As per the report, the sharp fall in inflation, global influences affecting exports and normalisation of post-pandemic demand put the pressure on revenues of the companies. It further noted that while the fall in general price levels affected the top line growth, the correction in principal raw materials prices appears to have aided margins for the companies facing a demand disruption. 

Ind-Ra further said that despite an overall robust corporate risk profile, sectors such as textiles, construction materials, infrastructure, chemicals, and non-ferrous metals are undergoing deterioration in credit profiles due to global economic pressures, large debt-funded capex among large entities, and rapidly increasing interest rates.