‘India Inc revenue expands modestly & profitability dips over 0.50% in Q2’

India Inc’s revenue is likely to have grown by up to 6 per cent in the September quarter, a report said on Thursday.

- OUR CORRESPONDENT

However, the operating profit margins compressed by up to 0.60 per cent during the July-September period as compared to a year ago, the report by an arm of domestic rating agency Crisil said.

“Corporate revenue is expected to have grown a modest 5-6 per cent on-year in the July-September quarter, following underwhelming performance of the power, coal, information technology (IT) services and steel sectors,” it said. The agency, which analysed performance of 600 companies, said companies in the sectors posting slower growth account for a third of the overall revenue.

It added that sequentially, the revenue growth during July-September period will be one percentage point higher than the preceding June quarter.

From a profitability perspective, it said companies struggled to fully pass on incremental costs in the automobile, pharmaceuticals and aluminium sectors, and the operating profit margin likely fell 0.50-1 per cent in Q2.