Corporate India gradually reverts to normalcy from Q2FY21: ICRA


New Delhi, Dec 2 | The Indian corporate sector has witnessed a gradual recovery back to normalcy after experiencing major Covid-19 pandemic induced disruptions and the resultant two-month long nation-wide lockdown, said ratings agency ICRA on Wednesday.

The restrictions imposed to combat the pandemic in Q1FY21, resulted in an unprecedented 33 per cent revenue contraction, it said.

A ICRA analysis of financial results of 587 companies in the Indian corporate sector, excluding financial sector entities, showed aggregate revenues saw growth of 34.9 per cent in Q2FY21 from Q1FY21 levels, although remaining lower by 6.5 per cent on a YoY basis.

Besides, margins too have registered an improvement during the second quarter.

“During Q2 FY2021, sequential recovery from Q1 FY2021 levels was visible across sectors as the restrictions eased, and some sectors were even able to bounce back to pre-Covid levels and report revenue growth on a Y-o-Y basis,” said Shamsher Dewan, Vice President – Corporate Sector Ratings, ICRA.

“Among consumer-oriented sectors, although large-ticket discretionary purchases like leisure travel and lifestyle retail continue to remain on the back-burner due to risk aversion and general uncertainty, the demand in several other sectors, including passenger vehicles, two-wheelers, consumer durables etc. have bounced back over the past few months.”

“Essential goods like FMCG and consumer foods were not impacted materially even in the midst of the lockdown, given their essential nature and continue to remain so.”

Among other sectors, the analysis report cited that commodity-oriented sectors such as cement, iron & steel and metals & mining sectors also reported sequential and YoY recovery, supported by firming up of commodity prices as well as volume expansion; and aided by a pick-up in industrial activity.

“Industrial and infrastructure-oriented sectors, on the other hand, while exhibiting sequential recovery, are yet to reach their year-ago levels, and contracted by 11 per cent and 14 per cent on a Y-o-Y basis respectively during the quarter,” the analysis report said.

“Select sectors such as IT, reported muted revenue growth of 4 per cent in INR terms, although organic growth was impacted by deceleration in key verticals. Sectors like pharmaceuticals, power and telecom also recorded Y-o-Y revenue growth.”

On the profitability front, the report said that India Inc delivered a positive performance, with both operating profit and PBT margins at multi-quarter highs.

“Many entities aggressively rationalised costs through salary cuts, downsizing of workforce, renegotiation of rentals and interest rates, curtailment of overheads such as travel and conveyance etc. from the first quarter itself in order to survive the challenging period.”

“The benefits of these percolated into the second quarter, which coupled with sequential recovery in revenues, aided significant recovery in margins.”

Accordingly, PBT margins expanded on YoY as well as sequential basis to 9.1 per cent during the quarter.

However, ICRA said it did not expect these margin levels to sustain, given the raw material headwinds due to the firming up of commodity prices, and the gradual reversion of costs to pre-pandemic levels.

Source: IANS

Sponsors Posts

From being a developer to a CEO in California, Manthan Dudeja's top tips to make money while you're still in college

From being a developer to a CEO in California, Manthan Dudeja's top tips to make money while you're still in college

Gone are the days when one had to finish school, college and subsequent years in getting trained to be able to sustain oneself with decent income. Today, what you earn eventually depends upon your skillset and how early you got started to build an expertise in your domain.

Manthan Dudeja, who currently lives in California and is still in his graduation years, understood the perks of starting early and is now a CEO who has worked across a plethora of jobs, from IoS programming to website development and blogging to trying his hand at Amazon Associates.

In conversation with this dynamic entrepreneur, let’s decode the various options for freshers to make a side income while they are still in school/college –

  • Content writer/Editor

Manthan explains how he started off by writing for blogs with whatever knowledge he had and with the help of internet, this could be by either writing for your own online blog, for instance Manthan was interested in Tech, so he was writing for his blog ‘TechCrack‘ or for someone else in the capacity of a content writer.

It’s not difficult to get started if you have the basic understanding to develop a ‘flow’ while writing a piece and the skill to write what suits your target audience.

  • Software developers/ Programmers/ Coders – Today, software/app developers are earning more than the average of $60 an hour by working remotely. There are a host of online paid/free platforms providing trainings to acquire such skills, Manthan has been an app/website developer for the longest time and by far, this skill has given him the best results for his work.
  • Digital Marketer/ E-Marketer-

Your journey to become a digital marketer starts the day you take the step of self-educating yourself and learning the tricks to attract potential customers either by way of Google, Facebook, or any other digital platform by a host of scalable ways on the internet, undoubtedly, digital marketing is the hottest online work from home concept of this decade.

Manthan is today a successful digital marketer who has equipped himself with the advanced knowledge of online ads on various mediums and has effectively used these skills to generate incredible revenue over time.

These are some of the best ways to get started, according to Manthan, all


Sponsors Posts

2 BHK Residential Apartment for Sale in Aadhya Hills Bhita Jabalpur

2 BHK Residential Apartment for Sale in Aadhya Hills Bhita Jabalpur
Aadhya Hills is one of the residential development. It offers spacious and skillfully designed apartments. The project is well equipped with all modern amenities to facilitate the needs of the residents.
  • Property type: Residential Apartment 
  • Offer type: For Sale 
  • City: Jabalpur 
  • Zip Code: 482001 
  • Locality: Bhita 
  • Landmark: Bhita 
  • RERA Registration Number: P-JBP-18-1599 

For more details please click here or visit


Please enter your comment!
Please enter your name here