Revenue growth of domestic companies in March quarter at lowest level in two and a half years

Ahmedabad: The revenue growth rate of domestic companies may be limited to four-six percent in the January-March quarter, which will be the slowest rate after the Covid pandemic. This claim has been made in CRISIL's report on Credit Assessment and Analysis. This report is based on the analysis of 350 companies. However, it does not include companies in the financial services and oil and gas sectors.

The report said this slowdown comes after strong income growth in previous years. There has been steady growth since the initial revival in September 2021 following the Covid pandemic. Only 12 of the 47 sectors monitored by CRISIL are expected to improve sequentially and year-on-year revenue growth for the March quarter, the report said.

Consumers expect discretionary products and services to look their best. The auto sector was boosted by healthy growth in passenger vehicles last year due to higher volumes and price increases in discretionary products. The report said the organized retail sector has grown for the 13th consecutive quarter due to good demand in urban areas.

Discretionary services like airlines and hotels have benefited from a surge in weddings and corporate travel. In contrast, revenue growth of construction-related sectors is expected to slow. The reason for this is the high comparative base.

Construction companies recorded their highest-ever quarterly revenue in the March quarter of FY 2022-23. Despite steady demand in the quarter under review, the cement sector recorded moderate revenue growth as prices remained under pressure amid higher supply and intense competition.