Inflation may continue to weigh on demand without any meaningful improvement in the underlying consumption trends
India Inc continued to cope to safeguard shrinking margins amid stretched balance sheets in the last three months of financial year 2023. Even as demand worries persisted, concerns of high costs crimping margins in an uncertain environment led by increasing interest rates, ballooning inflation and weak global macro situation, remained.
Analysts feel corporate earnings in the fourth quarter of FY23 will be lopsided and most of the heavy lifting is likely to made by banking, financial services and the insurance (BFSI) sector companies. Decline in commodity-led companies, like the metal sector, is expected to be a drag on overall earnings in the quarter.