Metals to help India Inc log 7-9% revenue growth in FY19, but there is a catch
Export-linked sectors such as pharmaceuticals and information technology are expected to face challenging times, amid the turbulent international trade environment, it said. The agency said it expects commodity prices to be relatively higher during the fiscal and when coupled with high interest rates and rupee depreciation, can neutralise the profit growth. However, on the capital expenditure front, it said it is unlikely to revive till fiscal year 2019-20 on a limited growth in the profits and whatever expenditure does happen will be on maintenance, and not expansions.
Recovery in the metals sector will help India Inc to have a stable fiscal year 2018-19 with 7-9 per cent revenue growth, but there is a catch involved too. And that is, capex recovery will not be possible for two more years. Image source: Reuters