IGI Logo

The rating agency Crisil’s arm -- Crisil Market Intelligence and Analytics in its latest report has said that India Inc is set to report a 6-8 per cent slowdown in revenue growth in the April-June period, making it the fourth straight quarter of a dip in the key number. However, from a profitability perspective, corporate India is set to report an increase in margins to 20 per cent as against 19.6 per cent in the year-ago period, due to softness in the commodity prices. It also said moderation in the revenue growth will be on the back of low realizations and a high base.

It said the revenue growth will be 2 percentage points lower than the one observed in the preceding January-March quarter, and added that this will be the first time in eight quarters that the listed companies will show a sequential decline in revenue growth. After an analysis of 300 companies from 47 sectors, excluding financial services and oil and gas, the report said 14 sectors are likely to witness a fall in revenue while 15 may have logged slower sequential growth. It said lower realisations and slowing global demand for metals and industrial commodities affected makers of aluminium, steel, ferro alloys and petrochemicals.

It further said revenue of aluminium manufacturers likely fell 14-16 per cent owing to an 18-20 per cent decline in international prices and a sedate growth in volumes, and added that steel products may have logged a 6-8 per cent contraction in revenue on the high base of the previous fiscal and a drop in realisations, which offset volume growth. It noted that the power sector is likely to see a relatively slower 5 per cent revenue growth.