India Inc's Quarterly Revenue Growth Amidst Profit Margin Struggles

Despite hurdles in sectors such as IT and steel, India Inc experienced a revenue growth of up to 6% in the July-September quarter, according to a report by Crisil's arm. This rise was driven by strength in segments like cement and telecom.

The growth, though modest, was overshadowed by shrinking profit margins, which slipped by 0.50-1% primarily due to escalating input costs and geopolitical tensions that curbed IT sector growth. Companies in the steel and power sectors grappled with stagnant revenue owing to price declines and shifts in energy demand.

The rural economy, conversely, witnessed a boost from a bountiful monsoon, with tractor and two-wheeler sales surging significantly. However, the overall corporate landscape faced disruption due to adjustments in GST rates, influencing consumer behavior and inventory strategies in the passenger vehicle and FMCG markets.