India was under lockdown for the past two months. Icra said it analysed 184 companies, excluding the ones in the financial sector, for the study.
The study showed a 2.9 per cent revenue contraction during the March quarter when compared to the year-ago same period, and a 0.30 per cent dip in the operating profit margins to 16.8 per cent, it said.
The financial performance of the Indian Corporate sector in Q4 FY2020 was primarily hurt by consumer and commodity-linked sectors, both of which were impacted significantly as the pandemic started spreading rapidly, Icra vice president for corporate sector ratings Shamsher Dewan said.
He added that despite some uptick in the initial part of the last quarter, major consumer-oriented sectors such as FMCG, consumer durables and auto and ancillaries reported either decline or marginal growth in sales volumes, weighed down by subdued consumer sentiment and increased wariness.
The lockdown has compounded the same, it said.
On the other hand, tepid realisations driven by softening commodity prices, coupled with subdued volumes in light of the pandemic outbreak and macroeconomic slowdown, resulted in revenue contraction for major commodity sectors, including oil and gas entities, metals & mining and iron & steel, he said.
The major impact on revenues came from commodity-linked sectors, which witnessed a contraction of 15 per cent in revenues on account of tepid realisations and subdued volumes, the agency said, adding revenues in the consumer-oriented sectors fell by 9 per cent.
From a ratings perspective, the agency said the interest coverage ratio of the sample companies, adjusted for sectors with low debt levels (like IT, FMCG and pharma) also witnessed a weakening to 3.0x from 3.5x in Decmeber 2019 and 3.6x in March 2019, it said.