Indian companies likely to clock 7-8% revenue growth in Q4FY25: ICRA
Domestic rating agency ICRA in its latest report has said that Indian companies are likely to clock 7-8 per cent revenue growth during the March quarter of the current fiscal year (Q4FY25), led by revival in rural demand and uptick in government spending. ICRA expects the private capital expenditure (capex) cycle to remain measured in view of the uncertainties around geopolitical developments and relatively subdued outlook on merchandise exports from India.
Nonetheless, the report said certain sunrise sectors such as electronics, semiconductors and niche segments within the automotive space like electric vehicles (EVs) will continue to see a scale-up in investments, in line with various production-linked incentive programmes announced by the Government of India. It said the recovery in the operating profit margins (OPM) for India Inc witnessed over the past quarter is likely to be sustained at 18.2-18.4 per cent, supported by an increase in demand, led by improved consumer sentiments. It said the evolution of the global economic and political scenario, movement in foreign exchange rates, impact of the new US President's policies, pick up in government spending and a revival in the domestic urban demand would remain the key monitorables over the near-term.
ICRA's analysis of the Q3 FY2025 (October-December) performance of 602 listed companies (excluding financial sector entities) shows a 6.8 per cent year-on-year revenue growth, supported by improved demand across consumption-oriented sectors like consumer durables, FMCG, retail, hotels and airlines, while a few commodity-oriented sectors like iron and steel witnessed some decline, following lower realisations owing to weak global demand and influx of cheaper imports from China.
