Tuesday, March 11, 2025 | 11:42 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Will 2019 be the year of earnings revival?

In a tough, volatile and slowing global scenario, India will really stand out if it can deliver

Illustration by Binay Sinha
Premium

Illustration by Binay Sinha

Akash Prakash
One of the great frustrations of the past five years has been the abysmal performance of corporate earnings in India. Earnings have compounded at only about 5 per cent in these last five years, significantly undershooting consensus estimates, and frustrating investors. Every investor is tired of hearing how low the ratio of corporate profits to gross domestic product (GDP) has fallen and how much below the mean Indian corporate profitability currently is. One has seen too many strategy presentations regressing profitability back to the long-term mean over a five year period, and hence forecasting a 20 per cent earnings growth
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in