Losses weigh on India Inc Q3 results
India Inc’s aggregate performance in Q3FY22 has been disappointing with revenues growing at just 16.7% year-on-year, the slowest pace in the last four quarters. Moreover, net profits for a sample of 1,685 companies (excluding banks and financials) have fallen by 12% y-o-y thanks to a contraction in operating profit margins of 243 basis points y-o-y and a 24% y-o-y jump in interest costs. Also, more companies have reported losses or a year-on-year drop in profits for the quarter than in December 2021.
Except for banks, IT services and automobiles, corporate earnings growth could remain subdued in FY24 as the economy is poised to decelerate sharply. With a few days to go before the end of earnings season, analysts at Jefferies noted that of the 100 companies they analysed for Q3FY23, 40% had reported numbers that were below estimates. Much like in FY23, earnings growth is expected to be dominated by banks and financials in the coming year too
Bulgaria competition watchdog fines LUKOIL Bulgaria $36.8 mln
Bulgaria’s competition regulator has fined the country’s leading fuel distributor and trader LUKOIL Bulgaria 67.7 million levs ($36.83 million) for abusing its dominant market position.
The regulator said on Friday that LUKOIL Bulgaria, controlled by Russia’s LUKOIL (LKOH.MM), had put price pressure on its wholesale competitors by gradually changing wholesale price conditions and removing quantity discounts from March 2021 until the end of June 2022. That policy could limit competition on fuel markets and affect consumers, it said.
“The Commission for Protection of Competition found that LUKOIL-Bulgaria implemented a comprehensive strategy to limit competition in the wholesale trade of fuels in the country,” the regulator said in a statement.
The regulator launched a probe into LUKOIL Bulgaria’s price policy following complaints by the Bulgarian unit of OMV and other wholesale fuel traders. In September last year it accused the company of breaching competition rules.