• Industry Research
  • Report
  • Corporate Profitability
  • India Research
  • Commodity Prices
  • Telecom Sector
January 10, 2017

CRISIL Q3 FY18 Results Outlook

Growth looks up as consumption linked sectors gain momentum, signalling cyclical recovery

CRISIL Research expects corporate revenues – excluding that of banking, financial services and insurance, andoil companies – to rise ~ 9% on-year in the third quarter ended December 31, 2017. Consumption-linked sectors,with the exception of telecom services, is expected to grow at a robust 13-14% driven by a demand boost fromthe festive season, and owing to the low base effect from demonetisation impact in the same quarter last fiscalalong with the fade-out of GST-related disruptions. Commodity-linked sectors such as steel products andpetrochemicals are expected to continue growing amid firm prices.


On the other hand, growth in telecom, information technology (IT), and pharma sectors may slacken in thequarter. Appreciation in the rupee and pricing pressures will continue to affect export-linked sectors such aspharma and IT services. While pricing and regulatory pressures from the US will remain in pharamceuticals, newproduct launches will help contain the damage, though this could take a few quarters to play out. Telecomindustry will continue to face pricing pressure, as incumbents slash tariffs to maintain competitive pricing.