Mumbai : Higher commodity prices and continued revival in demand for consumer discretionary products likely lifted corporate revenue 18-20% on-year to Rs 8.2 lakh crore in the second quarter of this fiscal, indicates a CRISIL Research study of ~300 companies (excluding from the financial services and oil sectors) that account for 55-60% of the market capitalisation of the National Stock Exchange.
Revenue from consumer discretionary products such as automobiles likely spurted 19-21% on-year, aided by higher realisations and volume. Construction-linked sectors are estimated to have grown 22-25% on-year, benefiting from the low-base effect of last fiscal.
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% on-year increase seen in the first quarter.
Says Hetal Gandhi, Director, CRISIL Research, “Elevated commodity prices and healthy realisations would lead to better revenue performance across sectors in the second quarter. As many as 24 of the 40 sectors represented by these 300 companies have likely grown over 20% on-year. But overall revenue growth would be a notch lower at 15-17%excluding commodity sectors such as steel and aluminium. On a sequential basis, it could be even lower at 8-10%, with export-linked sectors such as IT services and pharmaceuticals proving to be drags, even though growing at a stable 4-6%.”