Lower commodity prices and languishing demand across consumption segments likely pared India Inc.’s revenue for the second quarter on the trot in the three months ended December 31, 2019, according to a Crisil Research estimate.
The estimate was based on an analysis of 300 companies that account for about 60% of the market capitalisation of the National Stock Exchange, excluding banking, financial services, insurance, and oil players. The revenue of surveyed firms declined 2-3% year-on-year in the third quarter of fiscal 2020 mainly due to muted private consumption and decline in revenue of industrial and construction-linked sectors.
At 2-3%, the decline exacerbates the pain from a 3-4% fall seen in the previous quarter. Between the second quarter of FY19 and the first quarter of FY20, aggregate revenue had grown 11-12% on average.
Prasad Koparkar, senior director, Crisil Research, said, “Aggregate revenue of listed auto players is estimated to have fallen 9-10% in the third quarter. Revenue growth of FMCG firms, too, is expected to have moderated 4-6%, owing to weakening rural consumption.”
