India Inc may report halving of revenue growth in the fourth quarter of FY2023, a credit rating agency said on Thursday, as companies start reporting their financials.
Crisil’s market intelligence and analytics arm said revenue growth will decline to 10-12% as compared to 22.8% in the January-March period.
For the full FY23, revenue is projected to grow at 19-21%, which is slower than the over 27% growth recorded in FY23, it said, adding that operating margin will expand by 3 percentage points. Shortage is likely.
The continuing adverse conditions for exports have had an impact on volume growth, and high-base was cited as the main reason, which will lead to a sharp deceleration in topline growth for Q4FY23, Crisil said, adding that 300 companies across 47 sectors analyzed. Expectations, said.
It said revenues of commodities and export-oriented sectors such as textiles, gems and jewellery, and information technology-enabled services declined year-on-year.
Steel products, which accounts for about 11% of SET’s revenue, is estimated to see a 7-9% decline in revenue during the March quarter due to the imposition of export duty in May 2022 and weakness globally. demand amid increased input costs.
Similarly, aluminum industry revenue is expected to decline by 17-19% due to sluggish global demand.
Consumer discretionary products such as airlines, hotels, media and entertainment, and retail led revenue growth, while demand for consumer staples such as pharmaceuticals and fast-moving consumer goods (FMCG) continued their growth momentum, according to the research. Director Ankit Dani said.
Hotel revenue is expected to increase by 98%, airlines by 67% and telecommunications companies by 13%.
On the profitability front, operating profit margin is projected to improve for the second consecutive quarter – from 19% in the December 2022 quarter to 19-20% during the March 2023 quarter, the agency said.
Its associate director Sehul Bhatt said, “Prices of key energy-related commodities such as crude oil and non-coking coal have come down from their previous highs and will partially offset the impact of lower global demand.”
The report said that corporates are likely to see an improvement in their profitability this fiscal as commodity prices ease and revenues increase.