India Inc: Most companies of the Indian subcontinent recently declared their financial results for the quarter ending in June 2020. The Businesses have been shut for a major part of the quarter due to the coronavirus induces nationwide lockdown. Which subsequently led to blaming the Covid-19 disease and the economic shut down for the reported results, irrelevant for the good or the bad.
How were the results?
The Early bird results declared for the quarter ending in the month of June teased were better-than-expected growth and performance of India Inc. 95 Companies have declared their results as of now. Their Cumulative profit before tax also called as PBT so far dropped 8.6 per cent year on year whereas their net sales and net profit plunged 3.4 per cent each during the aforementioned quarter.
What was expected in the quarter?
The above talked about losses aren’t as bad as several agencies and analysts expected them to be. At the same time, Analysts, now, expect the declarations to go downhill as more and more companies announce their results in the near future. This is beacuse the results so far declared and talked about in the current sample is major of companies working in the information technology and financial services sectors. These sectors have been least affected by the Covid related factors and the subsequent lockdown announced by the government.
Then who has been affected?
Companies in the Manufacturing sector are the worst hit by pandemic. Lower demand and
plant closures have directly deteriorated their operations and in turn their results. The total Profit before tax reported by these companies during the June 2020 quarter was Rs. 49,311 crore. The PBT fell sharply as against RS. 54,000 crore PBT declared during the same period a year ago. Net sales plummeted to Rs. 2.7 trillion in the first quarter of financial year 2021 in comparison Rs. 2.8 trillion last year. Net Sales were recorded to be Rs. 3.12 trillion in the last quarter of FY20.