India Inc earnings drop 22% in March quarter over legacy issues: Icra

India was under lockdown for the past two months. Icra said it analysed 184 companies, excluding the ones in the financial sector, for the study.

Earnings of India Inc fell by nearly a fourth in January-March as compared to the year-ago period due to legacy problems, Icra said on Thursday, warning of deeper impact in the June quarter due to Covid-19-induced lockdown.

Absolute earnings of the corporate India contracted by 22 per cent and 12 per cent in Q4FY20 and FY20, respectively. Further, the impact is expected to be even more pronounced during Q1 FY2021, given the stringent two-month long nationwide lockdown, the rating agency said.

It can be noted that with the onset of the pandemic, the investor class had got apprehensive about corporate