Here is why India needs to worry

India Inc is set to report a decline in both revenue as well as profit growth numbers in the December quarter, says a report. Revenue growth will dip by up to 5 percentage points on average to 12-13 percent, domestic ratings agency Crisil said in a report Monday and attributed the estimate mainly to high base in general and also due to certain sector specific issues.

Auto companies will post a revenue growth of only 4 percent on rise in ownership costs and weaker finance options which have crimped sales during the quarter, while the same for the FMCG sector will be 8 percent on sluggish rural demand, it said, adding sugar, aluminium and telecom will face pressure from lower realisations.

Operating profit growth will decline to 10 percent, a sharp decline from 15 percent growth levels achieved in the preceding three quarters, the report said. Commodity-linked sectors will see a jump in revenue growth, led by natural gas (37 percent), steel products (27 percent), cement (10 percent), while infrastructure-related sectors like construction are expected to clip at 12 percent.

TRENDING NOW

Sikkim floods: 10 dead, 22 army men among 82 missing as flash flood wreaks havoc; PM Modi calls CM Prem Singh Tamang

ENG vs NZ FREE Live Streaming: When and How to watch England vs New Zealand Cricket World Cup 2023 Match live on Web, TV, mobile apps online

Renewable technologies can improve energy security by diversifying power supply options: Wind turbine body

India vs Australia World Cup 2023: Check How to book IND vs AUS tickets online, ticket price, match date, time, squad details

Capri Global Holdings sells Indiabulls Housing Finance's shares worth Rs 43 crore

HAL, Exide, Nazara Tech: Stocks to watch out for on Thursday

Canva launches all-in-one AI design offering

Flight Cancellation: 76 flights cancelled till October 8, check the status of your flight

Defence Minister Rajnath Singh announces fresh 'positive indigenisation list' to boost domestic defence manufacturing, launches debit card for offline transaction by naval personnel

LPG cylinder subsidy for Ujjwala beneficiaries increased, cylinder prices to go down by Rs 100: Check reduced rates lpg cylinder price delhi kolkata mumbai chennai

Jet Airways Insolvency: Creditors question source of Rs 200 crore deposited by Jalan-Kalrock Consortium

Amazon Great Indian Festival: What is Amazon's Re 1 pre-booking scheme? What can you book for Re 1?

Significant growth opportunities in Indian battery energy storage system market: Industry players

Cheapest Apple iPhones available in Amazon and Flipkart sales; Check deals and discount offers

RBI constitutes 9-member panel on ECL framework

The rupee was weaker by 11 percent during the quarter, which will benefit export-linked sectors such as software and pharma, which are estimated to grow by 21 percent and 10 percent, respectively, it said.

"Commodity and infrastructure-linked sectors are expected to support revenue for the December quarter," said Prasad Koparkar, a senior senior director at Crisil. In consumption spending-led sectors such as airlines and retail, revenue will be supported by positive demand sentiment, while in export-oriented segments such as software services and pharma, the boost would come from a weak rupee, he said.