Corporate India’s sales growth to slow down further in Q3 FY 08

Corporate India’s sales growth to slow down further in Q3 FY 08


Mumbai: Corporate India is expected to witness a slowdown in sales growth during Q3 FY 08 to 13%, compared to a sales growth of 24.7% witnessed during the December 2006 quarter, the Centre for Monitoring Indian Economy (CMIE) said here.

“The slowdown in sales was largely on account of a significant slowdown in sales expansion in sectors like chemicals, information technology, food products, commercial vehicles, auto ancillaries, two-and-three-wheelers, aluminium and aluminium products and a modernisation in the robust growth of sectors like cement, steel, metal products, pig and sponge and hotels sectors," CMIE said in its monthly review of the Indian economy released here.

Banking, construction, telecommunication, general purpose machinery, prime movers, material handling equipment, air transport and non-banking financial companies are expected to witness a healthy growth during the quarter.

In Q2 FY 08, the Indian corporate sector had registered a growth in sales revenues by 15.2% and a healthy growth of 23.6% in earnings.

These growth rates would have been even slower had it not been for the robust performance of the services sector. The financial services sector had grown sales revenues by 37% and earnings by 32.2% CMIE stated.