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
India's Redington expects double-digit growth, to enter new markets
India’s Redington Ltd is targeting double-digit revenue growth for the next financial year and a foray into new markets, betting on a pandemic-led push for digitising corporate and government offices, its top boss told Reuters on Friday.
Redington, which distributes products for over 290 brands, including Apple and Samsung, is looking to enter about a dozen new countries like Indonesia, Myanmar and Azerbaijan in the next couple of quarters, Managing Director Rajiv Srivastava said.
Chennai-based Redington, which operates in 38 countries, is also increasing its 4,500-odd workforce by 5% globally in about a year.
The expansion comes at a time when global economies are contending with a slowdown, and the pandemic-led demand for consumer electronics is fading out as schools and offices reopened.
Still, the drive towards digitisation by governments and businesses is a “one-way street” as offices would have to continue to spend on servers, storage and software upgrades driving revenue growth for companies like Redington, Srivastava said in the interview.