Ratings agency CRISIL estimates revenue growth for India Inc to reverse the trend seen over the previous two quarters and register a subdued growth between 7% to 9% year-on-year for the quarter ended March 2014 mainly due to the high base of the corresponding quarter last year for sectors such as capital goods, real estate, cars and utility vehicles, and one-time benefits such as recovery of past dues and higher incentives in the fourth quarter of FY13 for power and coal, respectively.
While, the rating agency expects export-oriented sectors to continue to witness robust revenue growth, led by rupee depreciation, it expects a subdued growth in infrastructure and investment-linked sectors owing to a weak investment climate. Additionally, it expects growth momentum in consumption-linked sectors such as telecom, retail and media, which have witnessed recovery over the last three quarters, to continue. Revenue growth, which rebounded in the second and third quarters of last fiscal, averaged over 10% year on year.
Nonetheless, the global analytical company estimates that the overall revenue growth would be continued to be supported by sectors such as IT, pharmaceuticals, readymade garments and cotton yarn, which benefit from currency tailwinds.