The government’s efforts like the speedy auctioning road and railways projects is insufficient to revive over all economic sentiments. The negative topline growths are the main worry, and experts say a sustained bottomline growth is not possible till there is stability at the topline level. According to them, the projected Sensex EPS for 2016-17 has reduced from Rs 2,142 to Rs 1,631, a fall of 24%. What lies ahead Analysts are continuing to cut their earnings projection for next year. Bank of Baroda took the entire hit in the third quarter and reported a quarterly loss of Rs 3,342 crore, the biggest ever registered by an Indian bank. The biggest negative surprise came from public sector banks, which reported huge jumps in NPAs. “Interest burden going up despite banks reducing their base rate shows the increase in debt levels,” adds Dua. “This quarter’s numbers were worse than anticipated, even lower than the muted expectations,” says Gaurav Dua, Head, Research, Sharekhan.ĭespite the general reduction in interest rate structure, interest cost rose by 4%. Net profit levels also contracted by 10.62%. Fall in product prices, especially of commodity companies, only added to the topline contraction. A fall in demand due to the ongoing economic slowdown was the primary reason. The aggregate revenue of the quarter ended December 2015 contracted by 5.53%, com pared to the same period in the past year (see chart). Though the consensus EPS estimate for 2016-17 is 18% growth compared to 2015-16, most experts doubt this. Worse still, most experts are not very hope ful about a turnaround anytime soon. Another result season has come and gone without any sign of economic revival.
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