The revenue of Indian corporates is projected to have increased 8-10 per cent on-year in the December quarter — the growth coming below market expectations — but declined 100-150 basis points sequentially. Revenue growth seemed to be propelled by volume, particularly in the domestic market, while realisation either declined or grew at a sedate pace, reports CRISIL Market Intelligence and Analytics. Of the 47 sectors tracked, all but 13, accounting for 10 per cent of the revenue, recorded an on-year pick-up in revenue growth. In all, the analysis covered 350 companies (excluding financial services and oil and gas sectors).
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 such as chlor-alkalis and commodity chemicals and aluminium. In the September quarter, on-year revenue growth had improved after easing for four quarters on the trot. Construction-linked sectors, which together account for 20 per cent of overall revenue, grew 5-7 per
cent as construction activity picked up post the lean monsoon season, thereby augmenting growth in the cement and steel industries as well.
Aniket Dani, Director, Research finds that corporate revenues continued to be driven by consumer discretionary products and services, and consumer staples, which contribute over a third of total revenue. “Automobiles, airlines, retail and hospitality supported growth. Led by the healthy performance of pharmaceuticals and IT services, export-linked sectors rose 16 per cent and outpaced overall revenue growth,” says Dani. Revenue of automobile manufacturers is estimated to have risen at a healthy pace due to a pick-up in demand for passenger vehicles, tractors and two-wheeler
Finer details reveal that revenue growth eased once again during the December