Mid-caps worst hit as analysts see 24% dip in Q1FY20 PAT for India Inc

A lockdown to contain the pandemic is now eased, but companies are still struggling to get back on their feet. Puneet Wadhwa explains what to expect from companies in terms of revenue

Economic activity in most of the April-June quarter of financial year 2020-21 (Q1FY21E) came to a standstill when India locked down to contain the spread of the coronavirus pandemic. The lockdown hampered manufacturing, disrupted supply chains and froze demand, leading to significant revenue loss for India Inc.

Companies responded by cost-cutting and liquidity-boosting measures, but profitability in the quarter could see a significant dent because of the revenue loss, analysts say. The lockdown has eased, but restrictions limiting hours of operations and higher operating cost deter companies from utilising their resources optimally.

A glimpse of what could be in store came last