Amid eroding consumer confidence and flaring inflation, India Inc will kick-start its April-June quarter (Q1FY23) earnings season this week. The period assumes significance as investors will watch out for the full-fledged impact of the Ukraine-Russia war, and the subsequent cost inflation. Corporate profits moderated even in the January-March (Q4FY22) quarter on the back of record high commodity prices.
While India Inc was able to show resilience in terms of topline growth, profitability margins for many sectors such as FMCG, and IT were significantly impacted in the preceding quarter. And, the geopolitical tensions have not ceded since then, keeping commodity prices volatile.
Against this backdrop, analysts say that the corporate earnings this quarter will be a mixed bag, with select pockets like banks