India Inc’s revenue growth estimated to slow down QoQ, operating margins to remain steady at 15-18% in Q1FY25: ICRA

livemint.com:

ICRA.While signs of a revival in rural demand have emerged, headwinds such as a slowdown in the Government of India’s (GoI) spending during the Parliamentary elections and onset of monsoon period are likely to weigh on growth in H1 FY2025, ICRA said in a release.However, the operating profit margin (OPM) will remain steady in the range of 15-18%, despite the expected tapering in revenue growth, as raw material costs are expected to remain steady, it added.Also Read: Indian banks well placed with strong balance sheets, record profits, cheap valuations: CLSA“The revenue growth is expected to marginally slow down in Q1 FY2025 (on a QoQ basis), on a relatively high base, amidst a perceived temporary pause in the infrastructural activities for a major part of Q1 FY2025 due to the General Elections and the dependency of rural demand on the monsoon. Moreover, the concerns of the ongoing geopolitical tensions may adversely impact demand sentiments, especially for export-oriented sectors," said Kinjal Shah, Senior Vice President & Co-Group Head – Corporate Ratings, ICRA Limited.The 5.0% YoY and 6.3% sequential revenue growth for Corporate India in Q4FY24 was supported by healthy demand in consumer-oriented sectors like airlines, hotels, automotive and FMCG.