Weak consumer sentiment and softening of commodity prices pushed Indian corporate sector’s revenue growth to a six-month low in the March quarter.
The revenue growth of the Indian corporate sector slumped to a six-quarter low in the March quarter of FY19, a report said. It was weak consumer sentiment and softening of commodity prices that brought about the decline, it further said.
Credit rating agency ICRA analysed the quarterly financial results of 304 companies for this report. It claimed that revenue growth in consumer-linked sectors in the sample was 2.3 per cent in the March quarter of on an annual basis, down from 9.8% in Q3 FY2019. Comparatively, the revenue growth in commodity-linked sectors was at 12.4% in Q4 FY2019 on a Y-o-Y basis, down from 31.0% in Q3 FY2019, the report added.
Indications from auto OEMs and FMCG companies point towards a slowdown in rural growth which can be attributed to a muted rabi harvest, the report further said.
Source: Business Today
