Mixed Fortunes: India's Corporate Revenue Dynamics

The revenue growth of India's corporate sector slowed to an estimated 4-6% in the first quarter of this fiscal year, as per Crisil Intelligence. This decrease from previous quarters' approximate 7% growth is primarily due to underperformance in power, IT services, and steel sectors.

Collectively accounting for a third of the revenue assessed by Crisil Intelligence, these sectors illustrate significant pressure, with the power sector alone experiencing an 8% year-on-year revenue decline. Cooler summer weather significantly reduced electricity demand, affecting both power and coal sectors.

On a more positive note, sectors like pharmaceuticals, telecom services, and organised retail demonstrated robust growth, buoyed by stable domestic markets and strong export demand. Telecom services, in particular, saw a 12% rise, driven by more expensive subscription plans, while organised retail benefitted from key segments like value fashion and food.

(With inputs from agencies.)