For Quick Alerts
For Daily Alerts

India Inc revenues to crawl: CRISIL Research


India Inc revenues to crawl: CRISIL Research
CRISIL Research has said that that India Inc''s revenue growth (excluding banks and oil & gas companies) will decelerate to 6-7 per cent in January-March 2013 (Q4 FY13) from 17.5 per cent in Q4 FY12 on the back of waning demand.

While growth in investment-linked sectors is expected to continue to decelerate at a fast pace, consumption-led sectors too are experiencing moderation in growth. This is reflected in the slowdown in private final consumption expenditure (PFCE) growth - to 4.6 per cent in Q3 FY13 from 9.2 per cent in Q3 FY12 - resulting in slower growth in sectors such as automobiles, hotels, retail and readymade garments (RMG).

Mukesh Agarwal, President, CRISIL Research, said, "Manufacturing and investment-linked sectors are anticipated to grow at a tepid pace of 4-5 per cent in Q4 FY13. Such sluggish growth was last witnessed over three years ago in Q1 FY10, driven by the dramatic slowdown in the global economy after the credit crisis in the US. But this time, domestic issues such as administrative delays, high cost of capital

and persistent inflation are largely responsible for slowing demand growth."

CRISIL Research's analysis of 28 key sectors (excluding banks, oil and gas companies) indicates that capital goods, construction, commercial vehicles, tyres, auto components and steel are expected to witness either a revenue decline or low single-digit growth in Q4 FY13 on a y-o-y basis, due to the weak demand environment.

Prasad Koparkar, Senior Director, CRISIL Research, said, "Unlike manufacturing, service sectors are expected to witness relatively better revenue growth of 12-13 per cent in Q4 FY13. Corporate India's revenue growth would have been even lower in the absence of support from these sectors. IT services is expected to continue to benefit from rupee depreciation, whereas the media & entertainment sector will see healthy growth driven by increasing digitisation. Telecom services will grow at a steady 6-8 per cent with improving average revenue per user (ARPU)."

Read more about: crisil
Story first published: Tuesday, March 26, 2013, 10:19 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more