India Inc revenue likely to grow 9-11% in June-quarter: Crisil

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Credit rating agency Crisil Research today said it expects India Inc's revenues to grow 9-11 per cent in the quarter ended June 30, 2014 and 11-12 per cent growth for the entire fiscal year 2014-15.

"We expects India Inc's revenues to grow 9-11 per cent in the quarter ended June 30, 2014, compared with 4.3 per cent in the same period last year and 8.4 per cent in the quarter ended March 31, 2014. For the entire fiscal year 2014-15, Crisil forecast Indian corporates to report 11-12 per cent revenue growth," Crisil said in a statement here.

This growth will largely be driven by strong growth in export-oriented sectors and select domestic consumption driven sectors such as FMCG, passenger vehicles, and two wheelers, Crisil said in a statement here.

The Crisil study covered 600 companies excluding financial services and oil companies, representing 71 per cent of the overall market capitalisation of India Inc.

While a gradual resumption of stalled projects and improvement in global economic growth bode well for longer- term revenue growth, the increasing probability of a below- normal monsoon enhances downside risks for sectors that generate substantial revenue from the rural areas.

"Export-oriented sectors such as IT services, pharmaceuticals, and readymade garments should post a revenue growth of 16-20 per cent in Q1 FY15 riding on factors like a currency base effect due to the rupee remaining 6 per cent below the levels seen in the June quarter of fiscal 2014 despite its recent appreciation and a strong volume growth in exports.

"What will also provide additional thrust is the improvement in the overseas operations of some companies," Crisil Rsearch President Mukesh Agarwal said.

The other sectors likely to outperform in Q1 FY15 are two-wheelers led by volume growth, steel with increase in volumes of large companies due to market share gains and better realisations, power generation with capacity additions and realisation gains, FMCG and shipping with rise in freight rates.

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