Dabur India expects second quarter revenue, profit to grow in double digits

India's services sector experienced its strongest growth in three months during September, according to a survey released on Tuesday, although the quarterly expansion marked its weakest since 2022. The HSBC India Services Purchasing Managers' Index (PMI) surged to 55.2 from August's 54.1, surpassing the preliminary estimate of 55.8, which indicates growth.

However, this figure fell short of expectations. September's improvement did not halt the decline in the July-September average, which dropped to its lowest level since March 2022, suggesting a less optimistic outlook. Hiring slowed down, and export momentum weakened during this period. While new business, a crucial indicator of demand, grew at its quickest pace since June, international demand was less robust, with export order growth slowing to its weakest in nearly three years, implying that domestic customers provided a more solid base for September's growth.

Employment growth decelerated from August, and input cost inflation reached its lowest level in 10 months. Customer fees rose at the slowest pace since June. Business confidence hit a three-month high but remained relatively subdued historically, with only about 16% of firms anticipating activity to increase over the next year. This services sector recovery, combined with manufacturing growth accelerating to its fastest pace since February, pushed the India Composite PMI to a three-month high of 55.9 in September, up from August's 54.3.

Nevertheless, the quarterly average remained the weakest since January-March 2022, dampening the signs of recovery.