New Delhi: When coming to revenue, Indian corporations have shown their courage in the previous quarter, posted a growth of around 14 percent of the years-year-year-old even though the prolonged war in Ukraine, soaring commodity prices and global supply disorders.

Topline growth at a good level does not include finance is 9.8 percent quarter-to-quarter and 24 percent every year, Icici Securities NSE -0.73 % said in a recent record. T ..

The company’s performance in the midst of global headwind comes behind greater performance in metals and oil and gas due to rising commodity prices and strong two-digit growth in IT and power spaces.

Taking into account the revised revenue after the fourth quarter of the previous financial year, Icici Securities said that the estimated progress had not experienced major changes.

More than a three-year horizon, namely Nifty Fy21-24E revenue, is seen growing at 20%+ CAGR. Rolling our assessment to FY24E & cut our advanced multiples in the midst of an increase in the scenario of our level increase now appreciates good things at 18,700 namely 20x PE in Fy24E. “

Head of Geojit’s Financial Services Research, Vinod Nair told ET Markets that while the monetary tightening cycle that the Reserve Bank of India had begun to imply an increase in interest costs and would affect a very leveled sector, a strong nominal GDP growth in India would help remain stable company income.

Pelawan view

While India Inc. so far shows resilience, there are factors that can ensure that future company income does not produce the same rate of return, market experts said.

The key between risks to company revenue growth is a mixture of deteriorating growth inflation.

While the second half of 2021 and the beginning of the calendar year currently witnessed a rapid update from economic activities, the period has also been marked by a stable improvement of inf.

Significant price hardening – which represents higher input costs – and RBI efforts to tame prices – can rob the company from the momentum of growth needed to report strong income growth.

RBI, which has raised the repo level by 90 basis points in about one month, is expected to tighten further monetary policy in the coming months, with analysts expect at least 50 bps more in the current calendar year.

We think there may be a big graph as far as the expectations of income. It is still very strong; If you look at expectations, there are still around 17 percent growth for FY23 and around 15-16 percent for the following year, JM Financial Securities’ MD & Chief-Strategy, Dhananjay Sinha told Pasar ET.

My feeling is that we are looking at the scenario where, even if you see the RBI projection of the GDP growth of 7.2 percent which is converted to 4 percent in the fourth quarter, 4.1 percent in the third quarter, with this kind of growth is very impossible that We will have an income growth of 16-17 percent and say the growth of 16 percent in the following year above growth of almost 40 percent. “

Sinha believes that in the midst of similar actions by large global institutions such as the IMF, RBI may need to reduce the projection of GDP and thus, the estimated income seems optimistic.

Veterans’ strategist said that the central bank’s decision to increase inflation projection while the risk of abundant growth, actually translated into lower growth.

In a note released after the RBI monetary policy statement on Wednesday, the Global Nomura company said that meanwhile agreed with the projection of the growth of the Central Bank’s GDP for the current financial year, growth for the following year could fail.

The main reason considered nomura for weaker growth in the coming year is high inflation that burdens income that can be discarded and real company profits, the behind -behind effects of policy tightening, private capex growth that is still inactive and slowing global growth.

“The tariff increase is part of him. I think what happens is that many of these companies benefit from stimulus and the fact that they get a market share from a small company. There is a certain price power, but go ..

The higher results of government bonds threatened to erode equity assessments because the more risk -free increases, the greater the discount rate based on the fair value of the stock. The results in 10 years of government bonds have risen more than 100 bps so far in 2022.

In the recent note, Axis Securities said that the ratio of beer (the ratio of bond equity income results) is now traded above its long-term average, which shows the equity market that is slightly expensive at the current level of vis-à-vis market bonds.

I think the biggest concern is about the price of crude oil, metal prices and hawkish policies, which can reduce the value of revenue growth,” said Geojit Nair.