If new product launches are an indication of the health of the industry, then the media truly recovered from recession in 2010. Companies like UTV, Viacom and the ADAG Group lined up a slew of channels to hit the market. Many among them were plans that had been postponed in 2008-09, when the first wave of recession came to India. India, like China and other emerging economies, managed to spend its way out of trouble and was back on track faster than the developed world. Experts actually predicted the next few years to be the golden growth years for the Indian economy.
Now, a combination of factors ranging from another looming recession in the West to high inflation and rising interest rates have threatened to subdue India’s growth prospects. CRISIL Research, in a release dated September 26, expects corporate India to report a significant moderation in revenue growth and lower EBITDA margins in July-September 2011 (Q2 FY12). The moderation is expected to be primarily due to decline in consumer confidence, on account of stubbornly high inflation and rising interest rates, and slowdown in investment growth.
The report says, “Based on an analysis of the aggregate financial performance of select companies across 21 industries (excluding banks and oil companies), CRISIL Research expects 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 Q2 FY11.”
Read the complete report at http://e4m.digitaledition.in/13397/Impact/Volume-8-Issue-16-09-October-2011#p=page:n=28:z=1