New Delhi (India), Oct 27 (ANI): Sluggish performance in construction, industrial goods and investment-related sectors led to moderation in Indian Inc’s revenue growth, CRISIL Market Intelligence and Analytics observed.

India Inc. saw a significant deceleration in revenue growth in the July-September quarter, marking the slowest pace in 16 quarters,

Sectors such as construction, industrial goods grew by just 1 percent, weighing heavily on the increase in total income.

Agriculture, which includes fertilizers and accounts for 2% of the sample’s income, saw a steep decline of 20-22%. The export segment, accounting for about 22 percent of the sample, grew a modest 5 percent, while “other” verticals, including aluminum, grew 4 percent.

Reacting to the findings, Elizabeth Master, Associate Director of Research, CRISIL Market Intelligence and Analytics commented, “Of the top 10 sectors, which account for 75% of revenue, eight saw an expansion in Ebitda margin, led by exports. sectors such as IT services and pharmaceuticals, investment-related sectors such as electricity and consumer discretionary sectors such as automotive and telecommunications services. The two sectors that faced margin contraction were steel due to higher iron ore prices and cement due to lower prices.”

In contrast, the consumer discretionary, staples and services sectors posted robust growth of 15%, contributing about 36% of the sample’s revenue.

Interestingly, despite the slowdown in revenue, the companies’ profitability has been resilient, according to the analysis.

Furthermore, aggregate EBITDA for the companies is estimated to have grown by approximately 10 percent in the second quarter of FY2025, with the EBITDA margin estimated at 21-21.5 percent.

Among the top 10 sectors, accounting for nearly 75 percent of total revenue, eight saw EBITDA margin expansion, according to the market intelligence firm.

Going forward, margin is expected to further improve by 50-150 basis points from fiscal 2025 on the back of lower commodity prices and higher volume-based revenue growth. (YEAR)

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