Saturday, July 14, 2018

India economics earning updates


EARNINGS UPDATE

1. India Inc. is expected to deliver a quarterly revenue growth of 12.8% during the April-June quarter, according to a report by Crisil.
2.  Highest quarterly revenue growth in three years and the third consecutive quarter showing double digit growth. A revival in demand in the domestic and global markets, a major factor for this increase in revenue.
3. The auto sector is expected to report a strong Year-on-Year (Y-o-Y) earnings growth of 47%. Other sectors that are poised for high earnings growth are: Metals (55%), Information Technology (51%) and Capital Goods (25%).
4. Rise in consumption and a low base in the previous year seem to be key factors in this good performance. Export-oriented sectors like IT and pharmaceuticals could benefit from the depreciation of the rupee.
5. Weak earnings growth from sectors such as telecom, cement, airline services and sugar.
6. In the case of the cement sector, rise in crude oil prices could eat into profit margins.