1. Weak demand weighs on corporate earnings

Weak demand weighs on corporate earnings

In the three months to June, lower commodity prices have led to a recovery in corporate earnings, despite weak growth in investment-linked sectors and subdued rural demand.

By: | Published: August 21, 2015 12:06 AM

In the three months to June, lower commodity prices have led to a recovery in corporate earnings, despite weak growth in investment-linked sectors and subdued rural demand. While the top line has grown marginally, the bottom line still remains flat. Fragile rural consumption is showing in volume growth of companies such as those in the FMCG sector and tractors and motorcycles. Going forward, analysts say lower input costs alone cannot drive corporate earnings as the demand growth is still weak.

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