Strengthening recovery

Corporate sales must rise to maintain the momentum

Corporate results for the third quarter of the current financial year (October-December 2020) show positive signs across many sectors. Profit margins have improved on the back of lower costs and moderate sales growth. Looking ahead, the 2021-22 Budget’s focus on infrastructure development should encourage investment and employment, which, in turn, should help push consumption. Key sectors like metals, construction, automobiles, and banks have seen turnarounds. Elements of the agro-economy such as edible oils, plantation crops (tea and coffee), and sugar have showed strong performance. The core sector has also done well. Many companies have registered lower interest costs. There are