Mumbai: The consumption slowdown in the country is taking a toll on corporate India's revenues with ratings agency Crisil predicting revenue growth in Q1 to be the slowest in two years.
“Corporate revenue is seen growing 5-6 per cent in the first quarter of fiscal 2020, the slowest pace in two years. That compares with an average revenue growth of 14-15 per cent in the past four quarters,” said Crisil.
“The reason being the broad-based slowdown in consumption, which has affected sectors such as automobiles and fast-moving consumer goods (FMCG),” it added.
The estimate is based on CRISIL Research’s analysis of 295 companies, which account for 60 per cent of the market capitalisation on the National Stock Exchange. The analysis excludes banking, financial services and insurance (BFSI) and oil sectors.
According to Crisil, adding to the pain from a slowdown in consumption was a fall in realisations in key commodity categories. An expected softening in commodity prices will moderate growth in sectors such as steel, aluminium, natural gas and petrochemicals, said the agency. A slower weakening of the rupee, at 4 per cent on-year compared with 8 per cent on average over fiscal 2019, is also expected to scrape some growth off key export-linked sectors such as information technology (IT) services. (IANS)
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