Corporate revenue growth is expected to print at 12-13% on-year for the third quarter of this fiscal ended December 31, 2018, or 400-500 basis points lower than the ~17% on average in the first two quarters.\u00a0Growth in operating profit (EBITDA), is also expected to print lower, at just below 10% on-year compared with ~15% over the three quarters preceding.<\/p>\n
Linked to this, India Inc is expected to report a margin contraction of ~50 basis points (bps) on-year for the quarter amid rising raw material costs across sectors.<\/p>\n
Says Prasad Koparkar, Senior Director, CRISIL Research, \u201cCommodity and infrastructure-linked sectors are expected to support revenues for the quarter ended December. Steel, cement, natural gas and petrochemicals are expected to be driven by volume and\/or realisation growth, while sectors such as construction and capital goods are expected to grow on a pickup in execution of key infrastructure-led government schemes. In consumption spending-led sectors such as airline services and retail, revenues will be supported by positive demand sentiment, while in export-oriented segments such as IT services and pharma, the boost would come from a weak rupee on a y-o-y basis.\u201d<\/p>\n
However, overall revenue growth will be constrained by a demand slowdown in automobiles, sugar, aluminium and telecom services. Automobiles revenue is expected to have been impacted by a rise in ownership costs, while the other sectors would bear the impact of lower realisations and competitive pressures.<\/p>\n","protected":false},"excerpt":{"rendered":"
Corporate revenue growth is expected to print at 12-13% on-year for the third quarter of this fiscal ended December 31, 2018, or 400-500 basis points lower than the ~17% on average in the first two quarters.\u00a0Growth in operating profit (EBITDA), is also expected to print lower, at just below 10% on-year compared with ~15% over […]<\/p>\n","protected":false},"author":3,"featured_media":3364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8],"tags":[3116,3115,3113,3114,3117,3118,1637],"class_list":["post-3363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india-inc","tag-cement","tag-commodity-and-infrastructure-linked-sectors","tag-corporate-revenue-growth","tag-growth-in-operating-profit-ebitda","tag-natural-gas","tag-petrochemicals","tag-steel"],"aioseo_notices":[],"yoast_head":"\n