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July 07, 2017

Revival in demand led by consumer sectors

Revenue continued to grow at a moderate pace in the final quarter, led by commodity-linked sectors, such as steel, aluminium and cement, on the back of robust realisation improvement. An analysis of the performance of 423 companies across 50 sectors (excluding financial services and oil) reflects the same.

A rise in realisations of key commodities such as steel, crude oil and aluminium by 29%, 70% and 22%, respectively, led to a robust revenue growth of 22% for commodity-linked sectors. Natural Gas and cement industries also benefitted from higher realisations.

On the other hand, export-driven sectors – IT services and pharmaceuticals – recorded the slowest growth in the past five years at 4.3%, due to pricing pressure and rupee appreciation. Consumer-driven sectors, such as auto, retail and airline services, grew at a moderate pace of 7.5%, as the impact of demonetization spilt over to this quarter.