India Inc revenues increase 22 per cent in June quarter: ICRA

Aggregate revenues of a sample set of 838 listed companies grew 22 per cent in the June quarter higher than 13 per cent YoY growth recorded in the March quarter reflecting earnings resilience of India Inc offsetting weakness in the oil sectorHowever aggregate Operating Profit Margin OPM contracted by over 200 basis points bps YoY in the first quarter of 202627 and net profits were flattish mainly because of the oilrefining sector where elevated crude prices and underrecoveries on LPG and petroleum products weighed on profitabilityExcluding oil amp gas OPM was stable at 19 per cent and net profits grew by over 20 per cent YoY ICRA saidICRAs review of the results announced so far suggests that India Inc began 202627 on a firmer footing than anticipated with aggregate revenues of ICRAs sample set of 838 listed companies growing by 22 per cent YoY in Q1 accelerating from the 13 per cent YoY growth reported in the preceding quarter the domestic rating agency said in a statementThis was driven by commodity and bullion priceled value inflation the enduring demand lift from the GST rate cuts last year that continued to spur the automobile sector and resilient overall consumption volumes notwithstanding the West Asia flareup and El Nino worries it addedICRAs sample set of 838 companies excludes financial sector entities and those with annual revenues of less than Rs 50 croreThe IT services sector ICRA said was a soft spot where constantcurrency growth stayed subdued Revenue growth also lagged in domestic cyclicals such as cement and sugar and exportfocused companies in sectors like textiles and auto componentsICRA Senior Vice President amp Group HeadCorporate Ratings Jitin Makkar said though concerns over a demandandcost shock weighed on sentiments at the beginning of the quarter the eventual impact was limited Consumptionled sectors were among the key growth driversWhile automobile Original Equipment Manufacturers OEMs recorded the strongest revenue growth several other consumeroriented sectors including FMCG consumer durables apparel and grocery retail jewellery retail and quickservice restaurants also reported healthy performance Makkar saidLooking ahead renewed geopolitical tensions in West Asia the consequent volatility in crude oil and commodity prices and an uncertain global trade environment will remain key monitorables Nevertheless healthy balance sheets and comfortable credit metrics of Indian corporates provide a meaningful cushion against potential earnings volatility and nearterm external shocks Makkar addedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever