Revenues of Indian companies between October and December may have risen just 7 per cent year-on-year marking the weakest growth in the last six quarters, according to global analytical company Crisil.
Slower growth in investment, export-oriented sectors and softer commodity prices are likely to have weighed on topline growth, it added.
Telecom services, cement, auto components, large pharma players, FMCG and IT services may have grew at a faster rate, but steel products, construction and auto firms are likely to have lagged behind. In fact, capital goods sector may post a fall in revenues, Crisil said.
"The rapid slide in global commodity prices will hurt topline growth of steel, petrochemical, and commodity chemical producers during the quarter," it noted.
However, ebitda margins may have jumped by 25-50 basis points year-on-year in the December quarter with sectors like petrochemcials, cement, housing, telecom and auto components outperforming, Crisil said. Margins in central power utilities, coal, IT and FMCG sectors would have been under pressure, it noted.
September Quarter Review:
Revenues of Indian companies grew by 8.6 per cent year-on-year in the July to September 2014 quarter - the slowest in five quarters, Crisil said. Slower growth in export-oriented sectors hit overall revenue growth, it added.
"In the September 2014 quarter, the rupee appreciated by 3 per cent against the dollar on a y-o-y basis; so no gains were reported on the currency front," Crisil said.
Outsourcers and drugmakers both reported a decline in revenue growth in the September quarter. IT services revenues grew by 9 per cent, while pharmaceutical sector witnessed a 15 per cent growth, both much lower than the growth registered over the previous quarters, Crisil said.
Investment and capital expenditure-linked sectors such as capital goods and construction witnessed revenue decline of 12.8 per cent and revenue growth of 3 per cent, respectively, due to a continued slowdown in capex cycle, Crisil noted.
Higher Ebitda growth, however, ensured a 37 basis point rise in margins as compared to corresponding quarter last year, Crisil said. Ebitda margins in the September quarter stood at 17.3 per cent, it added, which led to a 48 basis point rise in net margins to 7.6 per cent.
"Pharmaceuticals (232 bps), cement (288 bps) and telecom (191 bps) showed strong growth in ebitda margins, but margins for gems and jewellery (160 bps), power (131 bps) and IT (51 bps) declined in the September quarter," Crisil said.
Note: Crisil tracked aggregate financial performance of 600 companies across 60 sectors (excludes financial services and oil companies) during Q2FY15 for the above analysis.