NEW DELHI: The auto sector reported a 15 per cent decline in revenue in the January-March quarter of 2019-20 while pharma, fertilizers and telecom sectors showed positive growth, an analysis by the India Ratings and Research (Ind-Ra) said.
Ind-Ra's analysis is based on the fourth quarter results of 190 companies. Out of 417 companies across 14 key sectors which are tracked by the rating agency, only 190 have reported their fourth quarter results as of June 27, 2020.
In view of the continuing impact of the COVID-19 pandemic, the Securities and Exchange Board of India (SEBI) has given listed companies time until July 31 to submit their financial results for the quarter and the year ended March 31, 2020.
Pharma and fertilisers sectors showed resilience, with positive quarterly revenue growth on yoy basis, largely due to their essential nature of service, said the Ind-Ra.
"The largest impact however was seen on auto manufacturers and ancillaries with over 15 per cent yoy revenue fall in 4QFY20. The re-COVID-19 expectation was that there could be some pre-buying of BS-IV vehicles in 4QFY20; however, the opportunity was lost because of the lockdown.
"The power sector was affected due to a lower demand from commercial consumers. Telecom posted the highest year-on-year growth of 15 per cent in 4QFY20; while there could be the lower base effect, the sector witnessed higher average revenue per user driven by higher data consumption," it said.
It further said equity foreign portfolio investments saw a rebound to near pre-COVID levels during the first week of June 2020, reaching Rs 21,900 crore, whereas the debt segment saw a sell-off to the tune of Rs 1,600 crore.
In May 2020, foreign portfolio investments in equity were Rs 14,500 crore with a sell-off of around Rs 2,3000 crore.
"Incrementally, the absence of any other major negative developments (than COVID-19) along with the stimulus package led to some optimism on the prospects of an economy revival. Moreover, perception risk and market risk have improved owing to the Reserve Bank of India's proactive measures such as targeted and generic liquidity infusion and communication," it said.