CRISIL Research, India’s largest independent and integrated research house, expects India Inc’s results for the quarter ended June 30 this year to disappoint.
The reason being: soft commodity prices, weak growth in investment-linked sectors, and subdued rural demand.
According to the research house, the 600-odd companies (that account for 70 per cent of the overall market capitalisation) show only a mild 3 per cent uptick in revenue growth.
Sequentially, this will be 230 basis points more than the 0.7 per cent seen in the quarter ended March 31, 2015.
“We believe the continued weak performance of investment-linked sectors and companies impacted by low global commodity prices will curb even the moderate growth anticipated in the export-oriented and consumer-driven sectors. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins are seen dipping 70 bps on a year-on-year basis,” it said in a release.