Sprint To Finish

CORPORATE EARNINGS GROWTH IS LIKELY TO ACCELERATE IN THE LAST QUARTER OF FY21, BUT RESURGENCE OF COVID CASES COULD CLOUD THE OUTLOOK FOR FY22

Corporate earnings growth is likely to accelerate in the last quarter of FY21, but resurgence of Covid cases could cloud the outlook for FY22

India Inc’s January- March quarter results for FY21 trickle in, early birds bring good tidings of robust earnings momentum. Companies look set for a strong show in Q4 on a low base in the previous fiscal. However, the recent surge in infections and sporadic curbs by states could prove to be a dampener for the earnings story in FY22.

IT bellwether Tata Consultancy Services (TCS) kicked off the fourth- quarter earnings season on April 12 with a 14.9 per cent year- on-year growth in consolidated net profit and a 9.4 per cent increase in topline. Infosys and Wipro followed with double- digit growths in consolidated profits at 17.5 per cent and 27.7 per cent, respectively, and 13.1 per cent and 3.4 per cent increase in revenues. These numbers could be the harbinger of a healthy earnings season in a year ravaged by the pandemic.