'Cos' revenue growth in Q1 may slow down, but margins to rise'

For the first time in eight quarters, Indian corporates' aggregate revenue could see a decline as demand slowed and commodity prices fell, but profitability may improve marginally as raw materials prices eased, said Crisil.

Revenue growth for the June quarter could fall 200 basis points lesser than in the previous year, said the rating company. A basis point is 0.01 percentage point. On-year growth rate could also ease for the fourth straight quarter to six to eight percent. But operating profit margin may climb to 20% from 19.6% in the first quarter of last fiscal, and 19.3% in the fourth quarter, it said.

"Of the total on-year incremental revenue during the first quarter, nearly 60% would have been contributed by just three segments - investment-linked, export-linked, and consumer discretionary products and services," said Aniket Dani, director, Crisil. "Within these, a majority of this rise is likely driven by the automobile and cement sectors. Export-linked sectors are seen bucking the decline largely on the back of healthy growth in IT services and pharmaceuticals."