look news india
Mumbai: The revenue growth of Indian companies in the September quarter of the current financial year is expected to be the slowest in four years i.e. 5-7 percent year-on-year.
According to a CRISIL report, the stagnant performance of construction sector companies, which account for about twenty percent of the total revenue of Indian companies, is impacting the overall revenue growth.
The decline in the industrial commodity sector and slow growth in investment-intensive sectors have also impacted the overall revenues of companies.
Companies in the industrial goods, investment and construction sectors, which account for 38 per cent of the sectors under the agency's oversight, saw only one per cent growth in revenue, hurting the overall performance, the report said.
This report has been prepared based on the analysis of 435 companies with approximately 50 percent share in the listed market cap. The combined revenue growth of these companies in the June quarter was 8.30 percent. Second quarter results showed sluggish demand leading to a slowdown in revenue and net profit growth. There has been a slight increase in the net sales of companies. Under CRISIL's monitoring, the companies whose revenue growth is showing slow mainly include power sector, steel and cement related to construction sector.
Companies associated with the export segment are seeing a five percent increase in revenue. Pharma companies have done well in the export sector, but companies in the IT services sector have shown a marginal revenue growth of 3-4 per cent.