Sectors surviving the odds

A 5% appreciation in the rupee during the quarter brings further bad news for the export-oriented sector.

The petroleum companies are expected to report a y-o-y fall in sales and profits due to the economic blues. The oil marketing companies have been selling the auto fuels below cost for most part of the quarter, which would impact their profits. The refining business too is facing a pressure on margins; with the fuel consumption reducing globally while additional refining capacities commissioning operations.

In the cement sector, realisations in the June quarter are likely to be 8-9% higher on year-on-year basis for all-India players like ACC given strong demand from rural housing and government infrastructure. While ACC and Ambuja Cements are expected to post double digit growth in sales, revenue growth for Grasim is likely to be lower as the latter hived off its sponge iron business in May.

The June’ 09 quarter is likely to see a marginal improvement in the year-on-year performance of India Inc relative to the previous quarter’s performance. It needs to be seen if the ensuing budget provides it the much needed cushion for the coming quarters.