After eight quarters of decline or single-digit growth, corporate revenue grew in high double-digits of 15-17 percent in the March quarter of FY'21 to Rs 6.9 lakh crore, partly on account of the low base and better realisation due to higher commodity prices, pushing up their operating profits by a much higher 28-30 percent, says a report.

With a noticeable recovery in the second half of fiscal 2021, the overall revenue may be a just 50 bps lower than that of fiscal 2020, according to a pre-earnings forecast by Crisil Ratings. The estimates of 15-17 percent revenue growth to Rs 6.9 lakh crore in Q4 of FY21 are based on an analysis of 300 companies, which account for 55- 60 percent of the market capitalisation of the NSE, the agency said, adding operating profit jumped be 28-30 percent in the quarter.

The robust revenue growth rides on a low base of the year-ago quarter, besides higher government CAPEX and higher realisations amid a commodity upcycle, among others. A closer look at the revenue breakup indicates 50 percent of the recovery is contributed by automobiles, IT services and construction, according to Hetal Gandhi, a director at the agency who lead the team of analysts. She also pointed out that this double-digit growth comes after eight quarters of either decline or single-digit growth.

With a visible recovery in the H2 of FY21, the overall revenue for these 300 companies is estimated at Rs 23.8 lakh crore, which is a mere 0.5 percent lower on-year. The growth is led by construction-linked sectors like steel and cement which are estimated to have posted 45-50 percent and 17-18 percent on-year revenue rise, respectively, buoyed by higher realisations and volume.

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