Higher commodity prices and continued revival in demand for consumer discretionary products likely lifted corporate revenue 18-20 percent ON year-on-year basis to Rs 8.2 lakh crore in the second quarter of this fiscal, indicates a CRISIL Research study of 300 companies that account for 55-60 percent of the market valuation (M-Cap) of the National Stock Exchange (NSE). Revenue from consumer discretionary products, such as automobiles, likely spurted 19-21 percent year-on-year, supported by higher realisations and volume. Construction-linked sectors are estimated to have grown 22-25 percent year-on-year, benefiting from the low-base effect of last fiscal.

Overall revenue growth would be primarily supported by price hikes driven by costlier commodities. On-year volume growth would be mostly in single-digit across key segments except for commercial vehicles. To be sure, growth momentum would have slowed compared with the 47 percent on-year increase seen in the first quarter. On a sequential basis, overall revenue is likely to have grown 8-10 percent. Revenue from consumer discretionary products is expected to have risen 23-25 percent sequentially after demand was hit by the second wave of the Covid-19 pandemic in the first quarter. Construction-linked sectors are estimated to have grown a moderate 3-5 percent as seasonal weakness slowed down execution and volume growth.

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