Left Menu
Development News Edition

Auto sector revenue drops 15 pc in Jan-Mar: Ind-Ra

The auto sector reported a 15 per cent decline in revenue in the January-March quarter of 2019-20 while pharma, fertilizers and telecom sectors showed positive growth, an analysis by the India Ratings and Research (Ind-Ra) said.

PTI | New Delhi | Updated: 01-07-2020 16:11 IST | Created: 01-07-2020 16:11 IST
Auto sector revenue drops 15 pc in Jan-Mar: Ind-Ra

The auto sector reported a 15 per cent decline in revenue in the January-March quarter of 2019-20 while pharma, fertilizers and telecom sectors showed positive growth, an analysis by the India Ratings and Research (Ind-Ra) said. Ind-Ra's analysis is based on the fourth quarter results of 190 companies. Out of 417 companies across 14 key sectors which are tracked by the rating agency, only 190 have reported their fourth quarter results as of June 27, 2020.

In view of the continuing impact of the COVID-19 pandemic, the Securities and Exchange Board of India (SEBI) has given listed companies time until July 31 to submit their financial results for the quarter and the year ended March 31, 2020. Pharma and fertilisers sectors showed resilience, with positive quarterly revenue growth on yoy basis, largely due to their essential nature of service, said the Ind-Ra.

"The largest impact however was seen on auto manufacturers and ancillaries with over 15 per cent yoy revenue fall in 4QFY20. The re-COVID-19 expectation was that there could be some pre-buying of BS-IV vehicles in 4QFY20; however, the opportunity was lost because of the lockdown. "The power sector was affected due to a lower demand from commercial consumers. Telecom posted the highest year-on-year growth of 15 per cent in 4QFY20; while there could be the lower base effect, the sector witnessed higher average revenue per user driven by higher data consumption," it said.

It further said equity foreign portfolio investments saw a rebound to near pre-COVID levels during the first week of June 2020, reaching Rs 21,900 crore, whereas the debt segment saw a sell-off to the tune of Rs 1,600 crore. In May 2020, foreign portfolio investments in equity were Rs 14,500 crore with a sell-off of around Rs 2,3000 crore.

"Incrementally, the absence of any other major negative developments (than COVID-19) along with the stimulus package led to some optimism on the prospects of an economy revival. Moreover, perception risk and market risk have improved owing to the Reserve Bank of India's proactive measures such as targeted and generic liquidity infusion and communication," it said..


TRENDING

OPINION / BLOG / INTERVIEW

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

COVID-19: Weighing up the benefits and limitations of edtech platforms

Edtech companies shouldnt focus on merely pushing contents, but to provide an interactive, effective teaching and learning environment. ...

Videos

Latest News

China reports eight new coronavirus cases in mainland

China reported eight new coronavirus cases in the mainland for July 4, compared with three cases a day earlier, the health authority said on Sunday. Six of the new infections were imported cases, according to a statement by the National Hea...

Incumbent Koike seen ahead as Tokyo votes for governor amid pandemic

Voters in Tokyo went to the polls on Sunday to elect their governor, with incumbent Yuriko Koike forecast to clinch a victory, as Japans capital struggles with rebounding coronavirus infections and prepares for next years Olympics.Cases of ...

Mexico's COVID deaths pass 30,000, world's 5th highest total

Mexico has topped 30,000 COVID-19 deaths, overtaking France as the country with the fifth-highest death toll since the coronavirus outbreak began. Officials reported 523 more confirmed coronavirus deaths for Saturday, bringing the nations t...

Baseball-Yankees' Tanaka released from hospital after line drive to head

New York Yankees pitcher Masahiro Tanaka, who was hit in the head by a line drive off the bat of teammate Giancarlo Stanton on Saturday, has been released from hospital, the Major League Baseball team said on Saturday.Yankees manager Aaron ...

Give Feedback