Corporate revenues may rise 1.6% in q2

1. Corporate Revenues May
Rise 1.6% in Q2

2. Contd..
Corporate revenues are likely to grow by a meagre 1.6% for the quarter
ended September, which will be the fifth consecutive quarter of single-digit
growth, Crisil Research said on Wednesday. Fragile consumption demand,
especially in the rural areas, weakness in investment-linked sectors and the
meltdown in global commodity prices will more than offset the healthy
topline growth expected in the export-oriented sectors, it said.“Crisil
Research expects revenues of corporates to grow barely 1.6% year-onyear in
the three months ended September 30, 2015, marking the fifth consecutive
quarter of single-digit growth,“ it said in a release. EBITDA (earnings be fore
interest, taxes, depreciation and amortisation) or operating profit growth is
expected to be just 2% , Crisil said. The analysis is based on 600 companies
(excluding fi nancials and oil & gas), which account for 70% of the market
capitalisation of the NSE.

3. Contd..
“However, revenue growth is expected to improve in the second half of the current
fiscal following a mild up tick in consumption, in creased government spend ing,
and the statistical low-base effect. Despite this, revenue and earnings growth for
the entire fiscal is likely to remain in single digits and well below consensus
estimates, said the re lease. “Export-linked sectors will be the only bright spot in
terms of topline. Though merchandise exports have been declining for several
months now, listed exporters (primarily in the IT services and pharmaceuticals
sectors) are expected to grow at around 13% in the September quarter, helped
partly by the 7% depreciation in the rupee,“ said Prasad Koparkar, Senior Director,
Crisil Research.
Domestic consumption-driven sectors with high dependence on rural consumption
will be impacted by tardy growth in rural income, below-normal monsoon and poor
pricing power, he said. The research said FMCG companies are likely to post 6-7%
revenue growth, down from 12% in the last fiscal. In contrast, sectors more focused
on urban consumers such as multiplexes, retail, and telecom are projected to post
healthy double-digit topline growth.

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Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
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