Economy & Market
Realty revenues likely to fall by about 5 per cent
Real estate companies are likely to see their revenues fall by about 5 per cent in the July-September period due to increase in cost of inputs like cement. During the same period, airline companies are likely to see EBITDA margins decline sharply to 10 per cent from 22 per cent last year due to higher aviation turbine fuel costs, says CRISIL Research. According to the report, companies are likely to post a year-on-year (y-o-y) revenue growth of around 15 per cent, as compared to 19 per cent in the preceding quarter and 22 per cent in the corresponding quarter last year. During the July-September period, EBITDA margins are likely to fall to 18.6 per cent from 19.6 per cent last year. The report is based on an analysis of the aggregate financial performance of select companies across 21 industries (excluding banks and oil companies). Some of the reasons for the moderation in revenue growth and lower EBITDA margins in the second quarter of the current fiscal are decline in consumer confidence, high inflation, rising interest rates and slowdown in investment growth. For the construction sector, revenue growth is likely to see a y-o-y slow down to around 11 per cent, while EBITDA margins are projected to decline by 100 basis points to 9.6 per cent due to steep increase in prices of key inputs, mainly cement and steel.