Experts expect gloomy festive season for India Inc.
More than 60% of 125 firms that have reported results so far have missed profit forecasts for the June quarter, the most since 2016, according to Refinitiv data. Reports suggest that India Inc has recently witnessed its most disappointing quarterly numbers in the last three years. The slower growth in demand and consumption is already taking a toll on India’s biggest lenders and automakers. This has been accentuated by a capricious monsoon, high rates of unemployment and a liquidity crisis in the shadow banking sector.
This dismal state of affairs is also likely to cast its shadow over the Indian festive season, which usually lasts from September to the end of the year, and is typically the biggest sales season for companies. “It’s going to be a gloomy Diwali. Things are not going to change immediately in the next two or three months,” states Umesh Mehta, Samco Securities.