Deleveraging led by metals, broad-based recovery to take longer

摘要

India Ratings and Research (Ind-Ra) expects Corporate Outlook for FY19 to remain stable, driven by profitability improvement in FY18, leading to deleveraging. However, the improvement remains restricted to the metals sector and a broader recovery could take much longer. The agency expects revenue to witness high single-digit growth (7%-9%) and EBITDA to grow at 8%-11% in FY19 due to pick-up in demand in consumption-led sectors such as automobiles and retail, low base effect and higher realisation in commodity-linked sectors. However, export-linked sectors such as pharmaceuticals and information technology are expected to face challenging times, amid the turbulent international trade environment.