1. India Inc bitten by slowdown blues

India Inc bitten by slowdown blues

Although expectations are probably at their lowest ever, corporate India is finding it hard to live up to them.

By: | Updated: May 4, 2015 1:54 AM
India Inc

With the prospect of a less-than-normal monsoon looming large, rural demand could be impacted in the coming months further pressuring demand.

Although expectations are probably at their lowest ever, corporate India is finding it hard to live up to them. The earnings season has got off to a disappointing start with just a couple of companies surprising the Street so far; Maruti’s was a sterling performance but cautious commentary from the likes of a TCS will probably result in further downgrades in earnings estimates for FY16. Indeed, the sharp correction in the prices of commodities notwithstanding, profit margins aren’t really as robust as one would have expected.

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That’s because demand — whether for construction material such as cement or two-wheelers — remains subdued and consequently companies are finding it hard to push through volumes. Few have been able to raise prices. With the prospect of a less-than-normal monsoon looming large, rural demand could be impacted in the coming months further pressuring demand.

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