"Fragile consumption demand, especially in rural areas, weakness in investment-linked sectors, and the meltdown in global commodity prices will more than offset the healthy topline growth expected in the export-oriented sectors,' Crisil said in a note today.
It expects the top 600 companies, excluding those in the financial and oil &gas sectors, to post a meagre 1.6 per cent growth in revenues for the September period, making it the fifth successive quarter of single-digit topline growth.
The estimate comes on the back of a dip in GDP growth to 7 per cent in the first quarter, which the policymakers are looking to revive with various measures including a surprising 0.50 per cent rate cut by RBI last week.
Crisil expects the revenue growth to improve in the second half on a mild uptick in consumption, increase in government spending and a low base effect.
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On a sectoral basis, its senior director Prasad Koparkar said listed exporters including the infotech and pharma players are expected to show a topline growth of 13 per cent, largely on a 7 per cent depreciation in the rupee.
Cement and construction companies' revenue growth will be 2-3 per cent in spite of the traction received from the uptick in public investments, while capital goods manufacturers will report a decline of 7 per cent in revenues.
On the margins front, Crisil said it expects a 0.05-0.10 per cent growth to 17.5 per cent, led by the FMCG, automobiles, airline, tyre, and power generation sectors.
Telecom companies will report a handsome 2.5 per cent expansion in margins on data revenue and control over marketing costs, it said.
Software major Infosys will kick of the second quarter earnings season from Friday.