With 15 out of 26 sectors facing severe margin pressure due to higher
interest cost and slowing sales in the current quarter, Crisil expects
revenue growth of leading corporates to report their weakest quarterly
numbers in the past six quarters.
“Revenue growth in the April-June quarter is forecast to drop to around
14 per cent from 17.5 per cent a year ago, given the slowdown in
economic activity and gross fixed investments.
“Accordingly, Ebidta (earnings before interest, taxes, depreciation and
amortisation) margins are projected to decline by 100-150 basis points
(bps) or 1-1.5 percentage points on a y-o-y to 19-20 per cent, but
remain flat compared sequential (Q4 of FY12),” Crisil said on Tuesday.
The report is based on the analysis of aggregate financial performance
of 247 large companies across 26 key sectors, excluding banks and oil
& gas companies and constitute around 65 per cent of the BSE 500
Index.
“The revenue growth in Q1 FY13 is expected to be much weaker due to a
sharp deceleration in airlines, auto components, commercial vehicles,
hotels, metals, organised retail, real estate and textiles,” said the
report.
Although, overall Ebidta margins are expected to remain flat in Q1 on a
q-o-q basis, 15 of the 26 sectors will continue to face margin pressure,
said the agency.
“For sectors like commercial vehicles, cement, construction and real
estate, Ebidta margins are set to contract by 100-200 bps q-o-q, due to
slower demand growth and high input costs,” said Crisil Research senior
director for industry and customised research Prasad Koparkar.
PTI
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