We are in the middle of the September quarter earnings season, and the results announced by the BSE 500 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.
From the BSE 500 list, 120 companies have announced their September quarter results so far. We excluded banking and financial companies. The sales growth shows signs of recovery and the operating profit growth witness a smart surge hovering around its last 12-quarter peak growth levels. (Data Source: ACE Equity)
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.
Economic activity dropped significantly in the April-June quarter amid a 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.
