India's Q2 FY25 real GDP up 5.4%, industrial growth slow: SBI ECOWRAP

Industry decelerated to a six-quarter low to 3.6 per cent in the quarter due to broad based sluggishness.

The gross value added (GVA) grew by 5.6 per cent and nominal GDP grew by 8 per cent in the quarter.

With 6 per cent real GDP growth in the first half (H1) of FY25, the overall growth for full fiscal would be less than 6.5 per cent, SBI experts noted assuming 6.5-6.8-per cent growth in H2.

In actual rupee terms, the incremental growth in industry comes to merely ₹425.15 billion YoY in Q2 FY25 over Q2 FY24, indicating a hit of almost ₹1000 billion in incremental terms in the overall industry, the newsletter noted.

Around 4,000 companies in listed space reported a revenue growth of only 6.13 per cent, while their earnings before interest, taxes, depreciation, and amortization (EBIDTA) and profit after tax growth were around 7 per cent YoY and 9.4 per cent YoY respectively in Q2 FY25.

Further, companies excluding the banking, financial services and insurance (BFSI) sectors—represented by more than 3,000 listed entities—reported revenue and PAT growth of 3.9 per cent YoY and 6 per cent YoY respectively in Q2 FY25.

However, ex-BFSI companies reported negative EBIDTA growth of around 1.5 per cent in the quarter compared to 41 per cent growth in Q2 FY24; textile was among the sectors that contributed to this negative growth.

The steadily rising rural expenditure over the past few quarters reflects resilience and is driving higher rural demand, the newsletter added.

ALCHEMPro News Desk (DS)