Credit rating agency, ICRA in its latest report has revealed that aggregate revenues of Indian corporate sector witnessed rise of 17.1% during the first quarter of the current fiscal year (Q1FY19), on a lower base in the year-ago period due to impact of GST implementation. The rating agency also pointed healthy consumption-driven demand and pick-up in infrastructure spending as revenues growth drivers.
The report, which is based on the analysis of 660 companies, found revenue growth in 26 sectors out of the 32 sectors. As per the report, consumer-oriented sectors like auto, fast moving consumer goods, consumer durables, restaurants and airlines, and commodity-linked sectors like cement, iron and steel and oil and gas continue to do well, while sectors like capital goods, pharmaceuticals, media and fertilisers have also witnessed strong revenue growth.
However, ICRA noted that on a Q-o-Q basis, sales declined by 2.4% due to seasonal factors. Further, the report said that metals and mining (including iron and steel), consumer food sector witnessed decent margin improvement, while airlines, tiles and ceramics and cement sector witnessed significant erosion in margins due to rising fuel prices.