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

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)