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Indian corporates’ revenue growth likely to slow down over 12-24 months: S&P
Feb-20-2019

Global Rating agency Standard and Poor's (S&P) in latest report titled 'Indian Corporate 2019 Outlook - Time For Caution' has stated that revenue growth of rated Indian corporates is likely to slow down over the next 12-24 months. It also said that India's central government elections this year may pose additional risks for Indian corporates. It also noted that a change of administration may trigger expansionary government spending which may push up borrowing costs or even raise inflation.

According to the report, global risks such as stability of commodity prices as well as demand from the US and China will have a greater impact on the fortunes of Indian companies than domestic demand in the next year or two. It added that the revenue environment for rated corporates is facing increasing global risks such as China's slowdown, trade war escalation or a disorderly Brexit.

However, the rating agency said that the performance of Indian companies should remain stable, given low costs, capacity expansion, and benign input prices. It also noted that with the exception of telecom, growth in other sectors in India has been accompanied by margin stability and it expects that this trend to continue.

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