Indian Inc faces Q1 revenue uncertainties due to slow govt spending: Icra
Corporates are bracing for revenue uncertainties in the April-June period due to a slowdown in government spending and the onset of the annual monsoon season, domestic rating agency Icra said on Monday.
The sequential revenue growth will taper in the first quarter of the fiscal, the agency said in a note, adding that there was a 6.5 per cent growth in revenues in the March quarter compared to the preceding December quarter.
"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 the monsoon period, are likely to weigh on growth in H1FY25," the agency said.
"India Inc braces for revenue uncertainties in Q1FY25," it added.
Its co-group head for corporate ratings Kinjal Shah said the sequential revenue growth will slow down because of a relatively high base amid a perceived temporary pause in the infrastructural activities for a major part of the quarter due to the