Results preview: Nifty companies may see over 25% profit drop in Q1

Revenues set to take a similar hit

The April-June 2020 quarter is likely to have been a washout for India Inc as economic activity reduced significantly during the period owing to lockdown imposed by the government to slow the spread of the Covid-19 pandemic.

Leading brokerages expect a 27.3 per cent year-on-year (YoY) decline in the combined net profit (adjusted for exceptional gains and losses) of the country’s top 50 companies, which make up the Nifty50 benchmark index. The index companies’ combined net revenues are estimated to fall 27.1 per cent YoY in the June quarter.

In comparison, the combined adjusted net profit was down 13.2 per