ICRA Update on Indian Corporate Sector: Corporate Sector performance trips in Q1 FY2018 as GST rolls-out

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New Delhi, August 30, 2017: Key highlights of the report are as follows:

  • GST roll-out had a temporary impact on Corporate Sector performance
  • Revenue growth slowed down but earnings contraction was sharper as multiple factors hurt margins
  • Cement and Steel companies performed relatively better on price hikes
  • Key factors that impacted margins of companies across key sectors…
  • GST roll-out impacted sales off take across most consumer oriented sectors
  • Growth in PV sales moderated in Q1 but Two Wheeler picked up as OEMs ramped up production of BS-IV vehicles
  • Comparatively CV sales were also hit by pre-buying in the preceding quarter owing to BS-IV and GST roll-out
  • De-stocking by trade and low institutional off take impacted FMCG companies as well
  • Similar trends were visible in the Consumer Durable segment too
  • Most Indian pharmaceutical companies also reported weak performance because of lower sales in India
  • Cement demand continues to languish on account of weak demand from rural housing sand shortage in select markets
  • Comparatively, steel consumption improved on back of healthy demand from automotive sector and capacity ramp-up

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Corporate Comm India(CCI Newswire)