Highlights- GDP springs a positive surprise after better-than-expected corporate earnings – Overall top line growth of India Inc in line with demand picture reflected in GDP data – Q2 corporate earnings picture had benefits of moratorium and SC standstill on NPAs – Cost optimization key driver of Q2 profitability – Extreme cost control might crimp demand and drag future growth – If companies revert to near pre-COVID expenses, then earnings surprise could be limited – Q2 has by far been the biggest surprise and is unlikely to be repeatedEarly indications of a post-lockdown revival came from the September quarter numbers of Corporate India. Directionally, it is corroborated by the gross domestic product (GDP) data for Q2 FY21. Silencing the naysayers, the real GDP decline of 7.5 percent was much above the consensus forecast.The positive contribution of agriculture (YoY growth of 3.4 percent) was on expected lines. The surprises included: the marginal growth in manufacturing (0.6 percent), and the lower-than-expected decline in construction (at – 8.6 percent in Q2 against -50.3 percent in Q1) and the trade, hotels, transport and communication segments (decline of 15.6 percent in Q2 compared to 47 percent in Q1).Although India has entered a technical recession with… Read full this story
- Taking stock of financial markets’ first quarter
- Will Hurricane Harvey Recovery Sink or Save a Texas City Already Fighting for Survival? The Texas Observer
- Japan's second quarter GDP seen revised down on smaller capex gains
- Game Day: Texans extend 4th-quarter lead over Cardinals, 31-21
- Oil recovery trouble spot: Laid-off workers and hiring managers not on the same page
- Victor Cruz laughs off ‘Who’s the new guy?’ taunts, takes ‘small step’ toward return at Giants mini-camp
- Kristaps Porzingis fills the stat sheet again, but Knicks fall at home to Nuggets and Danilo Gallinari
- Robust China economic growth shows signs of fading in July
- Phoenix Suns' Greg Monroe understands if he's traded again soon
- Daugherty: With win over Broncos and the Browns up next, Bengals remain in playoff hunt
Is the recovery here to surprise us quarter after quarter? have 325 words, post on www.moneycontrol.com at November 30, 2020. This is cached page on Business Breaking News. If you want remove this page, please contact us.
