Revenue Growth To Bottom Out In Q3FY14: CRISIL Research

CRISIL Research, India’s largest independent and integrated research house, has announced its outlook on the results for Q3FY14 today (January 2, 2014). In the report, the research house mentioned that the topline would grow by 7% to 9% on a YoY basis during the quarter.

The CRISIL report has given out bullish signals. Unlike in the past quarter, where growth has been concentrated in some specific sectors, this quarter could see other sectors coming to the forefront as well. These sectors would reflect a gradual improvement in their revenues, resulting in better profitability going forward. The EBITDA margins are likely to remain stable on a YoY basis at around 17%. The report also expects sectors like IT services, pharmaceuticals, tractors, textiles, FMCG, retail and media to clock double-digit growth.

Commenting on the release, Mukesh Agarwal, President, CRISIL Research, says, “Revenues, after declining for nine successive quarters, rebounded in the July-September 2013 quarter. However, the growth in revenues was largely on account of export-oriented sectors benefiting from a weak rupee. From the third quarter of 2013-14, though, we expect a gradual recovery in more sectors. Apart from IT, pharmaceuticals and textiles, domestic consumption-linked sectors will see moderate improvement, as rural demand picks up owing to a better monsoon. Also, while growth in investment-linked sectors will remain weak, unlike in the last many quarters, it is not expected to deteriorate further. A more sustained recovery is expected only in 2014-15, spurred by investments in projects fast-tracked by the Cabinet Committee on Investments, and lifting of the mining ban by the government.”