Corporate India gradually reverts to normalcy from Q2FY21: ICRA

New Delhi, Dec 2 : The Indian corporate sector has witnessed a gradual recovery back to normalcy after experiencing major Covid-19 pandemic induced disruptions and the resultant two-month long nation-wide lockdown, said ratings agency ICRA on Wednesday.
The restrictions imposed to combat the pandemic in Q1FY21, resulted in an unprecedented 33 per cent revenue contraction, it said.
A ICRA analysis of financial results of 587 companies in the Indian corporate sector, excluding financial sector entities, showed aggregate revenues saw growth of 34.9 per cent in Q2FY21 from Q1FY21 levels, although remaining lower by 6.5 per cent on a YoY basis.
Besides, margins too have registered an improvement during the second quarter.
“During Q2 FY2021, sequential recovery from Q1 FY2021 levels was visible across sectors as the restrictions eased, and some sectors were even able to bounce back to pre-Covid levels and report revenue growth on a Y-o-Y basis,” said Shamsher Dewan, Vice President – Corporate Sector Ratings, ICRA.
“Among consumer-oriented sectors, although large-ticket discretionary purchases like leisure travel and lifestyle retail continue to remain on the back-burner due to risk aversion and general uncertainty, the demand in several other sectors, including passenger vehicles, two-wheelers, consumer durables etc. have bounced back over the past few months.”