Page 21 - CII Artha Magazine

Domestic Trends

Sector-wise gaining momentum in the Corporate

aftermath of the pandemic.
Most of the high frequency
A sector-wise analysis of indicators pertaining to the
ongoing investments shows sector showcase robust
that among the sectors, the growth, including air
services (other than financial) passenger traffic, hotel
sector attracted the highest occupation rate, e-commerce, Performance
investment of Rs 98.0 lakh travel & tourism, etc.
crore in FY23. Services here
include transport logistics, The sectors attracting higher
retail trading as well as ongoing investments also
natural gas trading & include Electricity, Chemicals,
distribution. Construction & Real estate,
Metals and Irrigation.
T uncertainties in the the corresponding quarter
The services sector has been he volatility and quarter and 31.7 per cent in
global environment since the last year. Notwithstanding the
Top sectors attracting ongoing investments in FY23 (Rs lakh crore) beginning of the war in moderation, net sales
120.0 98.0 Ukraine last year have continue to post double-digit
growth. The muted topline
100.0 79.3 impacted all countries, in both
80.0 developed and emerging performance is mainly
60.0 55.2 41.3 attributable to inflationary
40.0 24.1 23.6 markets. The resultant impact
20.0 15.3 13.6 on volatility in commodity headwinds weighing on
0.0 estate prices, and major supply-side consumer sentiments, an
Services (other than financial) Transport services Manufacturing Electricity Chemicals & chemical products Construction & real Metals & metal products Irrigation permeated into the and muted external demand.
uneven recovery in sectors
bottlenecks industry wide, has
performance of the corporate
Net profits contracted by 15
sector as well. Besides, the
recent developments in global
quarter, as compared to
financial conditions have per cent in the reporting
Source: CMIE capex database & CII Research expansion of 19.1 per cent
Note: Ongoing projects = Outstanding projects – implementation stalled further affected the earning of Encouragingly, the net margins helped to ease input prices
Note: Data extracted on 11th April 2023 corporates in the third seen in the same quarter last of corporates witnessed a pressures on the corporates.
quarter of FY23 (3QFY23) year and a contraction of 21.3 bounce back in the third The PAT margin improved to
per cent in the previous
quarter, attributable to high quarter, albeit at a mild pace, 6.3 per cent in Q3FY23
borrowing costs prevailing in helped by moderation in against 6 per cent in the
previous quarter.
commodity prices, which
State-wise 6.5 per cent in FY23 CORPORATE SALES the economy.
DECELERATE IN
respectively. While a lot of
Top States attracting higher ongoing investments in FY23 (Rs lakh crore)
focus was laid on housing Q3FY23 WHILE PAT
A state-level analysis shows 30.0 27.6 construction in Maharashtra, MARGINS RISE Corporate Performance Snapshot
25.0
that Maharashtra, Odisha, 20.0 20.1 19.4 17.6 Gujarat pulled off a lot of
Gujarat, Andhra Pradesh and 15.0 15.4 14.4 12.3 projects in Drugs & 70.0 65.1 12.0
Karnataka have emerged as 10.0 Pharmaceutical and Organic Despite an anticipated
top-ranking states in terms of 5.0 Chemicals. increase in demand during 60.0 50.8 10.0
0.0
attracting investments in Q3FY23 due to the festive 50.0
FY23. These states have been Odisha Gujarat Karnataka and holiday season, a 37.6 6.3 8.0
making a significant Maharashtra Andhra Pradesh Tamil Nadu Uttar Pradesh Outlook moderation in net sales was 40.0 31.7 6.0 6.0
contribution towards India’s noted during the quarter. As 30.0 25.5 29.0
growth story. Going forward, the per CII analysis of 2380 odd 19.2 4.0
Source: CMIE capex database & CII Research government’s push for capital companies (excluding oil & 20.0 15.6
Odisha, Andhra Pradesh and Note: Ongoing projects = Outstanding projects – implementation stalled expenditure at the central gas and financial companies) 10.0 2.0
Note: Data extracted on 11th April 2023
Karnataka attracted and state level will not only using CMIE Prowess database,
investments in double-digits in invested in a lot of projects generate demand in the the net sales growth 0.0 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 0.0
FY23. Some of the key related to renewable and construction and paper economy but also help moderated in both sequential
products.
projects pulled off by Odisha conventional electricity, while crowd-in private investment as well as annual terms in Net Sales (% y-o-y) PAT Margin (%) (rs)
include inorganic chemicals, at a higher level and sustain 3QFY23. It stood at 15.6 per Source: CMIE Prowess Database and CII Research
steel, air transport Karnataka invested in projects Further, level of investments the growth momentum of cent in Q3FY23 as compared Note: Includes analysis of 2380 non-financial listed companies
in Maharashtra and Gujarat
pertaining to natural gas
infrastructure and minerals. trading & distribution, housing the economy. to 29 per cent in the previous
Similarly, Andhra Pradesh expanded by 5.4 per cent and

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