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India Inc's Q4 FY23 topline growth to halve to 10-12%: CRISIL

18 Apr '23

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The Indian corporate sector's revenue growth is expected to come down to 10-12 per cent in Q4 FY23 compared to 22.8 per cent for Q4 FY22, according to credit rating agency CRISIL.
It said that for FY23, the revenue is estimated to have grown by 19-21 per cent—slower than over 27 per cent growth in FY22.
Revenue of the textile sector declined year on year.

The Indian corporate sector’s revenue growth is expected to come down to 10-12 per cent in the fourth quarter (Q4) of fiscal 2022-23 (FY23) compared to 22.8 per cent for the January-March period in 2022, according to credit rating agency CRISIL.

Corporates are likely to see their profitability improve this fiscal as commodity prices scale down and volumes drive revenue growth, CRISIL, which analysed 300 companies across 47 sectors, said.

CRISIL’s market intelligence and analytics arm said that for FY23, the revenue is estimated to have grown by 19-21 per cent—slower than over 27 per cent growth registered in FY22. Operating margin is likely to have moderated by 3 percentage points.

CRISIL cited continuing headwinds to exports that have affected volume growth and the high-base as the main reasons that will cause the sharp slowdown in topline growth for Q4 FY23.

Revenue of the textile sector declined year on year.

On the profitability front, operating profit margin is estimated to have improved a tad for the second consecutive quarter—from 19 per cent in the December 2022 quarter to 19-20 per cent during the March 2023 quarter.

“Prices of key energy-linked commodities such as crude oil and non-coking coal seem to have come off their earlier highs and will partially offset the impact of lower global demand,” its associate director Sehul Bhatt was quoted as saying by local media reports.

Fibre2Fashion News Desk (DS)

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