InvestorQ : Do you see the next quarter corporate results being impacted by the COVID lockdown?
Arusha Ray made post

Do you see the next quarter corporate results being impacted by the COVID lockdown?

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1 month ago
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Let me look at the positives first. The surge in consumer goods demand which began in the Dec-20 quarter has continued. Results of companies with global franchises has been a lot better and immune to local cycles. Classic cases are Bajaj Auto, Infosys etc. One big positive you must keep in mind is that Indian companies made massive efficiency gains on costs, inventories, collection cycles etc. All these are good in the long run.

Now for the challenges. The next 2 quarters could bear the brunt of lockdowns and the impact on output. CMIE has pegged joblessness at 7.97% in Apr-20 and that is going to impact demand and purchasing power. Be cautious on these stocks. The first job for Indian companies is to get back to normal growth in next two quarters. A lot will depend on how the spread is arrested and vaccinations are done.

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