Q4 corporate earnings set to rise on manufacturing growth: SBI

MUMBAI: Corporates are likely to log in healthier set of numbers in the March quarter clocking up to 12 per cent growth on the back of an improvement in manufacturing, says a report.

"We expect corporates to report a topline growth ranging from 10 to 12 per cent in the March quarter, while the bottomline may surpass topline growth," SBI Research said in a report on Tuesday.

While performance is expected to be varying for different sectors, FMCG and banks are expected to be better.

"Banks are expected to do better on net earnings but with low credit off take, the year is going to be a challenge on the margin front," the report said.

"The credit growth has been anemic and was at 4.36 per cent for the fortnight ended March 24, 2017, the lowest in many years. With banks flushed with funds, we expect to see the spreads coming under pressure," it added.

Automobile, capital goods, metals, oil and gas sectors are expected to declare double digit revenue growth, according to the report.

Pharmaceuticals, metals, capital goods are likely to come out with double digit growth, in terms of net profits.

Some of the best performers from the results announced so far include Hindustan Zinc (topline growth) while Goa Carbon was the best performer in the bottomline.

"Overall, some of the well governed corporates have weathered the demonetisation storm. These companies have been the first to declare the results while some of them may yet assess the impact of demonetisation," it said.

The report also observed that the government push for infrastructure, housing and better capacity utilisation, corporate earnings may set for a better numbers in 2017-18. WASHINGTON: Bangladesh is hopeful of quick implementation of the India-assisted developmental projects in the country after New Delhi announced a fresh $4.5 billion aid package, Finance Minister Abul Maal A Muhith has said.

Prime Minister Narendra Modi announced a line of concessional credit of $4.5 billion for implementation of projects in Bangladesh during premier Sheikh Hasina's visit to India this month.

"This in addition to the previously announced assistance of $1.5 billion takes to total of $6 billion," said Muhith.

The implementation of projects under the previous assistance package, he said took a longer time.

"This time it may be less because we provided the list of projects before Sheikh Hasina went there (to India). I am hoping that there should be quick implementation of these projects," Muhith said last week on the sidelines of the annual Spring Meeting of the International Monetary Fund and the World Bank here. Muhith also led a bilateral meeting with visiting Indian Finance Minister Arun Jaitley during which they discussed bilateral aid package and projects associated with it.

Bangladesh, he said, now has $6 billion line of credit from India.

"It is quite something," he said, but quickly noted that this is far less than that of India.

"It is (Indian aid) not anything like China. (When) the (Chinese) President came (to Bangladesh), we had great difficulty in calculating in monetary terms how much it can be. Then it has turned out to be $22 billion," the Bangladeshi Finance Minister said.

However, unlike the timeoriented Indian projects, which is being implemented at a fast pace, there is no such timeline for financial aid from China, he said.

"Some of them could not be there for two, three years, because they are not even in the egg laying stage. Not to speak of hatching the... and getting the chick, you see," he said.