Revenue of Indian firms likely grew by 18-20% on-year in Q2: CRISIL

Revenue from consumer discretionary products such as automobiles likely spurted 19-21 per cent on-year, aided by higher realisations and volume. Construction-linked sectors are estimated to have grown 22-25 per cent on-year, benefiting from the low-base effect of last fiscal, CRISIL said in a press release.

Overall revenue growth would be primarily supported by price hikes driven by costlier commodities. On-year volume growth would be mostly in single digit across key segments except commercial vehicles. To be sure, growth momentum would have slowed compared with the 47 per cent on-year increase seen in the first quarter.

On a sequential basis, overall revenue is likely to have grown 8-10 per cent.

Revenue from discretionary consumer products is expected to have risen 23-25 per cent sequentially after demand was hit by the second wave of the Covid-19 pandemic in the first quarter.

Construction-linked sectors are estimated to have grown a moderate 3-5 per cent as seasonal weakness slowed down execution and volume growth.

Revenue in the automobiles sector is estimated to have grown 27-30 per cent sequentially, led by an increase in realisations. That, in turn, is expected to steer growth for ancillary segments such as auto components and tyres, which have likely grown a robust 12-14 per cent and 6-10 per cent on-quarter, respectively.

Fibre2Fashion News Desk (DS)