India Inc marks slowest quarterly revenue growth in January-March 2024: Crisil

Corporates in India have likely logged a 4-6 per cent revenue growth in the January-March quarter, marking the slowest quarterly growth since recovery from the Covid-19 pandemic began in September 2021, as per an analysis of 350 companies (excluding financial services and oil and gas sectors) by Crisil Ratings.

The moderation is, though, on a higher base of the past year.

Among the 47 sectors monitored by Crisil, only 12 are expected to have clocked an improvement in revenue growth both sequentially and year-on-year for the quarter.


Consumer discretionary products and services likely led the show in the quarter. Among discretionary products, the automobile sector was steered by healthy growth in passenger vehicles on the back of higher volumes and price hikes in the past year.

The rating agency said that the organised retail sector grew for the thirteenth quarter in a row, on healthy urban demand. Discretionary services, such as airlines and hotels benefited from MICE (Meetings, Incentives, Conferences and Exhibitions), weddings and rebound in corporate travel segments.

At the other end, revenue from construction-linked sectors likely grew at a tepid pace, essentially on account of a high base of the fourth quarter of fiscal 2023 that saw construction companies achieving their highest quarterly revenue.

In the cement sector, despite steady demand momentum during the quarter, revenue growth remained moderate as prices were under pressure amid higher supply and intense competition, Crisil Ratings said.

Miren Lodha, Senior Director, CRISIL MI&A Research, "Even with slower revenue growth in March Quarter, corporate revenue is estimated to have grown 8 per cent in fiscal 2024. In fiscal 2025, revenue growth should improve to 9-10 per cent, driven by sectors less dependent on commodities and largely catering to the domestic market. Consumer discretionary segments, comprising both goods and services, will grow despite easing of the post-pandemic release of pent-up demand. Growth in the consumer staples segment will pick up pace owing to resumption of rural demand."

On the margin front, an improvement of 100 basis points (100 basis points is equal to 1 percentage point) is estimated on year in the March quarter. Overall earnings before interest, tax, depreciation and amortisation (Ebitda) margin for 350 companies continued to expand through fiscal 2024.