India Inc. Reports Slowest Revenue Growth In Four Years: CRISIL Analysis

(MENAFN- KNN India) New Delhi, Oct 28 (KNN) Corporate India witnessed its most sluggish revenue growth in 16 quarters during July-September 2024, with overall growth moderating to 5-7 percent, according to CRISIL Market Intelligence and Analytics.

The slowdown was primarily attributed to weak performance in construction and industrial commodities sectors.

While construction and industrial commodities segments recorded a mere 1 percent growth, consumer-focused sectors demonstrated resilience.

Consumer discretionary, staples, and services sectors posted a robust 15 percent growth, contributing to approximately 36 percent of the sample revenue.

However, the agricultural sector, including fertilisers, experienced a sharp decline of 20-22 percent, though it represents only 2 percent of the sample revenue.

Despite the revenue deceleration, corporate profitability remained strong. The analysis indicates that aggregate EBITDA grew by about 10 percent in the second quarter of fiscal year 2025, with EBITDA margins estimated at 21-21.5 percent.

The export segment, accounting for roughly 22 percent of the sample, managed a modest 5 percent growth.

"Among the top 10 sectors, which account for 75 per cent of revenue, eight saw EBITDA margin expansion, led by export-linked sectors such as IT services and pharmaceuticals, investment-linked sectors such as power, and consumer discretionary sectors such as automotive and telecom services," explained Elizabeth Master, Associate Director-Research, CRISIL Market Intelligence and Analytics.

"The two sectors that faced margin contraction were steel, due to higher iron ore prices, and cement, due to subdued pricing," she added.

Looking ahead, CRISIL projects further improvement in margins by 50-150 basis points over fiscal 2025, supported by easing commodity prices and anticipated volume-based revenue growth.

(KNN Bureau)

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