Expect better Q2 earnings on festive season and after 3 disrupted quarters: CLSA
Three back-to-back disrupted quarters and an advanced festive season should set up for better earnings growth from Q2 onwards, Nandurkar believes.
Mahesh Nandurkar of CLSA said the GST-impacted Q1 results season has been biased towards earnings cuts so far, despite headline numbers beating estimates.
Sectors showing weak trends have been auto, consumer and pharma. IT and banks have seen mixed trends, he added.
He said management commentary was that despite a weak quarter, the actual transition to GST has been smooth and most believe that lost sales should be partly recovered in Q2 itself.