Indian Corporate Landscape: Navigating Revenue Trends and Profit Margins

India Inc's revenue growth will stagnate at 5-6% in March quarter, while profitability expands. Crisil Ratings highlights consumer-driven sectors as primary contributors to growth. Telecom and retail sectors see significant revenue surges, while sectors like FMCG and IT services experience margin challenges. Exports show moderate growth alongside agriculture sector's strong performance.

Revenue growth for India Inc. in the March quarter will remain flat, at around 5-6%, according to a report by Crisil Ratings. However, the agency notes that profitability is set to improve with operating profit margins expected to widen to 8%, marking an increase of up to 0.60% compared to the previous year.

The analysis, which covered over 400 companies representing more than 50% of NSE's market capitalization, attributes this growth to sectors like consumer discretionary products and telecom services. Notably, the telecom sector is predicted to see a 15% revenue boost following tariff hikes and the rollout of premium 5G plans. The retail sector anticipates a 17% growth driven by demand in value fashion and expansion in store networks.

Despite challenges, the agriculture sector is projected to grow by 17-19% due to stable summer crop acreage and higher disposable incomes. On the flip side, automobile, IT services, and FMCG sectors face margin pressure, with the latter grappling with increased costs of essential inputs. Export revenues are expected to edge up by 4%, including modest growth in IT services and significant performance in pharmaceuticals.

(With inputs from agencies.)