It is one of the lowest growth rates registered since the Lehman crisis in 2008
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MUMBAI: India Inc’s sales growth, which fell four per cent during the quarter ended March 2015, is one of the lowest growth rates registered since the Lehman crisis in 2008. The slowdown was fairly broad based with exports, consumption, investment and resources all slowing down.
On the export front, while currency headwinds did play a role, there was a moderation in demand as well owing to weak global prospects, said Edelweiss Financial Service in its Q4 results review. During the quarter, India Inc’s Ebidta and profit after tax (PAT) declined 10 per cent and 11 per cent respectively.
“The growth numbers are even below the Lehman crisis lows. Traditional defensive sectors such as IT and pharma also slowed with top line growth of just 10 per cent and seven per cent year-on-year as against 30 per cent growth registered during the same period last year,” said Nirav Sheth, the head of research, Edelweiss Financial Services.
Following the sharp fall in the rupee in 2013, Mr Sheth said that the export sectors remained the main drivers of India Inc’s top line growth. “However, the subsequent rupee appreciation relative to Euro and other emerging market currencies accompanied with weaker demand has started impacting expor-ters top line growth,” he added.
Vinod Nair, head of fundamental research at Geojit BNP Paribas Fina-ncial Services, attributed the dismal Q4 numbers to fall in commodity prices that had led to inventory losses.
“The management commentary post Q4 results were also not that encouraging. While many of the companies refrained from giving any guidance due to unc-ertainty, others had lowered their growth outlook. So we can expect so-me more pain in next one or two quarters,” he said.
( Source : dc correspondent )
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