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Agri, Telecom, Consumer-Driven Sectors Help 5–6 PC Growth of Corporate Revenues
@Source: deccanchronicle.com
Chennai: Agri-linked sectors, consumer-driven sectors and telecom services have estimated to have helped corporate revenues grow by 5-6 per cent in the March quarter. Revenue of the agriculture sector, including fertilisers, likely grew 17-19 per cent with consumption improving following a stable summer crop acreage and higher disposable incomes stemming from better yields and remuneration for kharif paddy. In the previous December quarter, agriculture had seen a lower growth of 6 per cent, according to Crisil.Telecom services revenues are expected to have surged 15 per cent due to significant tariff hikes implemented in the second quarter and the introduction of premium 5G plans by telecom operators. The retail segment too likely saw a robust 17 per cent growth, led by demand in the value fashion, food and grocery segments, as well as an expansion of store networks.The aluminium sector too likely saw 17-19 per cent revenue growth on higher global prices and demand from North America. Higher aluminium prices also shrunk the margins of automobiles. Even in the December quarter, aluminium revenues grew by 22 per cent, with improvement in global prices and increase in premiums of major export destinations. On the domestic front, festive sales of automobiles had driven the demand for aluminium.Revenue growth of construction-linked sectors was likely to be limited to 1-2 per cent in March quarter as cheaper steel imports throughout the year resulted in lower prices on-year. However, steel prices have improved sequentially after the announcement of safeguard duty. The cement sector revenue likely grew 3 per cent on a high base. In the December quarter, construction-linked sectors had declined marginally.Revenues of consumer discretionary products, services and staple services segment is expected to see 8-9 per cent increase in revenue. Of this, the fast-moving consumer goods (FMCG) segment is expected to see 4-6 per cent revenue growth led by price hikes amid subdued volume growth. While rural demand has been resilient, the urban side has stayed subdued.
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