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India Inc’s revenue growth in Q2 to slow to 16 quarter low: Crisil

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India Inc's revenue growth in Q2 to slow to 16 quarter low: Crisil

MUMBAI:

India Inc

is expected to report a muted 5-7 per cent

revenue growth

for the

September quarter

, which would be a 16-quarter low mark. Usually, lower revenue and profit growth numbers weigh on investor sentiment and put downward pressure on stocks.

5-7% rise expected

The slower growth would be due to “stagnant performance in the construction vertical, which accounts for a fifth of India Inc’s revenue, besides a decline in the

industrial commodities

vertical and subdued growth in

investment-linked sectors

,” an analysis of 435 large companies by the market intelligence & analytics arm of

Crisil

noted.

These 435 companies account for nearly half of India’s total market capitalisation, the report said.
Construction, industrial commodities and investment-linked sectors – which account for about 38 per cent of all companies included in the sample for the analysis – grew only 1 per cent , weighing down overall growth in the second quarter, according to the report. “The agriculture sector, including fertilisers (2 per cent of the sample set’s revenue), saw a 20-22 per cent drop in revenue.”

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