India Inc's Revenue Growth Picked Up In Q2 After Four Quarters Of Moderation: CRISIL

CRISIL estimates that India Inc's revenue grew by around 8-10 per cent in Q2 after four quarters of moderation

Market analytics firm CRISIL said in a report on Friday that India Inc's revenue growth may have increased to 8-10 per cent in the September quarter. This comes after four consecutive quarters of moderation in their revenue.

As per the data provided by the firm, corporate revenue's growth had moderated from 39.5 per cent in Q1 FY23 to 7 per cent in Q1 FY24. However, the growth may have picked up again.

Aniket Dani, Director- Research, CRISIL Market Intelligence and Analytics, said, “Growth in revenue was largely skewed towards consumer discretionary products and services, where automobiles and the retail sector led the pack, and construction-linked sectors, where companies accrued benefits from an early deployment of capital expenditure by the roads and railways ministries."

The firm analysed over 300 firms (excluding financial services and oil and gas sectors).

The earnings before interest, tax, depreciation and amortisation (EBITDA) margin has also seen a pick up from last year. As per the data, companies EBITDA could have risen from 18 per cent to 20-22 per cent.

Sehul Bhatt, Associate Director- Research, CRISIL Market Intelligence and Analytics, said, “Corporate India is expected to continue to benefit from easing input costs this fiscal which will offer further impetus to volume growth."

The firm said that apart from construction industry, all the other top 8 industries recorded an expansion in operating profitability. It also cautioned against two factors that can impact performance of India Inc going forward. "The monsoon leaning towards inadequacy which could impact the crucial rural demand and export demand which continues to remain on the tenterhooks," CRISIL's note said.

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