India Inc feels the pinch! Earnings downgrades in Q1 highest since June ’20
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Corporate India logged its least flattering earnings expectations since the immediate aftermath of Covid shutdowns, with the June quarter upgrade-to-downgrade ratio plunging to 40% in an apparent reflection of demand moderation across swathes of the consumption economy. That's the lowest reading since June 2020 for the ratio that captures expectations of earnings by analysts covering a particular company. Data from Refinitiv showed 393 companies saw earnings downgrades after the June 2024 quarter results, while 247 companies saw upgrades. Notably, 250 companies had their earnings downgraded by over 3%, whereas 128 companies had upgrades exceeding 3%. ETMarkets.com However, many believe that the June quarter will be a temporary setback in India's long-term growth story. Private capex took a backseat as fresh investments waited for clarity on government formation and policies before proceeding further, due to the general elections. ...