Telecom, automobile companies lead earning downgrades, shows data

Analysts have downgraded earnings estimates for FY21 by 22 per cent. Firms in the telecom and automobile space have seen maximum downgrades, while health care is the only sector to have seen upgrades, according to the data analysed by Deutsche Bank Wealth Management. The financial sector has seen earnings downgrade of nearly 30 per cent amid uncertainty over NPAs build-up.

“Telecom services is a one-off led by large provisioning on account of regulatory dues. Auto companies (both two- and four-wheelers) and works on high operating leverage, with any fall in sales hurting profitability sharply. Financials have the risk of a