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Crisil Ratings in its latest report based on the analysis of 350 companies has said that Indian corporates' revenues are likely to have grown 8-10 per cent in the 2023 December quarter (Q3FY24) on an annual basis. It stated the operating profits have likely expanded 100-150 basis points on-year in the three months ended December 2023, giving the corporates an overall operating margin of 19-20 per cent in the first nine months of 2023-24 fiscal.

Revenue growth would have been stronger but for the decline in agri-linked sectors such as fertilisers, consumer staples such as edible oils, industrial commodities like chlor-alkalis and commodity chemicals, and aluminium, it said, excluding financial services and oil and gas sectors. Also, the rating agency said that revenue growth seemed to be propelled by volume.

Aniket Dani, a director with the agency, said construction-linked sectors, which together account for 20 per cent of the overall revenue, grew 5-7 per cent as construction activity picked up after the monsoons, thus augmenting growth of cement and steel companies. The revenues continued to be driven by consumer discretionary products and services, and consumer staples.