India Inc struggles

Another round of earnings downgrade possible

Corporate earnings for the June quarter are nothing to write home about. An insipid 0.3 per cent growth rate, year on year, in the net profit of companies, excluding those in finance and the oil and gas industries, along with the lowest revenue growth in six quarters at 4.4 per cent, is not inspiring. After considering banks and energy companies, the profit growth is worse; the adjusted net dips 0.8 per cent, the first decline after three quarters. India Inc is facing challenges on multiple fronts. For example, for the ex-banking and oil sample of 1,261 companies, raw material costs