India Inc set to disappoint in June quarter: Report

MUMBAI: At a time when the investors are already worried whether or not the crisis in Greece would impact the Indian companies, it appears India Inc is set to disappoint in the quarter results.

India Inc is set to post disappointing quarter results, quarter ended June 30, on the back of soft commodity prices, weak growth in investment linked sectors and subdued rural earnings, CRISIL Research said in a report today.

The research firms analysed 600 companies, (excluding financials and oil and gas) that account for 70% of overall market capitalization. The analysis showed that the revenues would grow at an abysmal rate of 3% this quarter. “Sequentially, this will be 230 basis points more than the 0.7% seen in the quarter ended March 31, 2015,” the research firm said.

“We believe continued weak performance of investment linked sectors and companies impacted by low global commodity prices will curb even the moderate growth anticipated in export-oriented and consumer driven sectors,” CRISIL said in the report.

Not just the growth but even the profits for the Indian companies are set to come down in the coming quarter. The EBITDA (earnings before interest, taxes, depreciation and amortization) margins too would dip by about 70 basis points in June quarter this year compared to the same quarter the previous year, the report added.