In Chart | September earnings show signs of sharp recovery

We are in the middle of the September quarter earnings season and the results announced by the Nifty 50 companies so far have shown signs of a sharp recovery, relative to the June quarter, when the economic activity in the country was compromised due to lockdown in various regions.

The earnings of India Inc is expected to improve further as most companies' operations and service levels are heading towards pre-COVID-19 levels. Experts also believe businesses will witness improving demand conditions on a progressive basis during the second half of this financial year.

The strong earnings recovery indicates not only good sales numbers but also show healthy signs on operating and net profit.

Economic activity dropped significant in the April-June quarter amid nationwide lockdown to combat the spread of coronavirus. Sales plunged into the negative terrain and, as a result, India's GDP contracted sharply by 23.9 percent during Q1 FY21.