Top Headlines: Run-up to Budget 2023-24, India Inc's Q2 earnings, and more

The July-September quarter (second quarter, or Q2) of 2022-23 (FY23) could mark the end of the period of an unprecedented rise in India Inc's earnings in the aftermath of the pandemic

When finance ministry officials begin their pre-Budget meetings with various central departments and ministries from today, their biggest challenge will be to identify and cut non-priority spending to meet the FY23 fiscal deficit target of 6.4 per cent of GDP. Meanwhile, the July-September quarter (second quarter, or Q2) of 2022-23 (FY23) could mark the end of the period of unprecedented rise in India Inc’s earnings in the aftermath of the pandemic. Read more on these in our top headlines.

Run-up to Budget 2023-24: Centre looks to cut non-priority expenditure

When finance ministry officials begin their pre-Budget meetings with various central departments and ministries from today, their biggest challenge will be to identify and cut non-priority spending to meet the FY23 fiscal deficit target of 6.4 per cent of gross domestic product. Sources informed Business Standard that while direct and indirect tax revenues had been healthy this year, they might not be enough to offset the massive expansion in food and fertiliser subsidies. Read more
 

India Inc's earnings to shrink in Q2FY23; net sales growth slows

The July-September quarter (second quarter, or Q2) of 2022-23 (FY23) could mark the end of the period of unprecedented rise in India Inc’s earnings in the aftermath of the pandemic. Most brokerages expect a contraction in corporate earnings and a moderation in revenue growth in Q2FY23 due to a combined effect of demand slowdown, decline in commodity prices, and margin contraction in sectors such as information technology services, fast-moving consumer goods, and cement. Read more
 

Telecom's share in overall capex may rise in next 5 years on 5G push

The telecom and digital sector witnessed the biggest increase in its share in the overall capex across industries in the past five years — up from 9 per cent during FY13-17 to 17 per cent during FY18-22. Its share in the capex pie is likely to get even bigger in the next five years as the roll-out of 5G services picks up pace. According to a report by Centrum Broking that looked at data from over 150 companies across sectors, capex spends of telecom companies in FY18-22 went up nearly two and a half times to Rs 3.45 trillion, against Rs 1.44 trillion in the previous five years. Read more
 

Direct tax mop-up rises 24% YoY to Rs 8.98 trillion in FY23 so far

The Centre’s gross direct tax collection for FY23, so far (until October 8), stands at Rs 8.98 trillion, 23.8 per cent higher than mop-up during the same period last year, the finance ministry said in a statement on Sunday. Net tax collection (after refunds) stands at Rs 7.45 trillion, which is 52 per cent of the FY23 Budget Estimate. The Union Budget for FY23 estimated a direct tax collection at Rs 14.20 trillion, against Rs 14.10 trillion collected in FY22. Read more
 

Maiden Pharma may lose import-export code over cough syrup deaths in Gambia

As the controversy surrounding the deaths of 66 children in Gambia being linked to India manufactured cough syrups by Delhi-based Maiden Pharmaceuticals, the Pharmaceutical Exports Promotion Council (Pharmexcil) has suspended the membership of the firm. Going forward, the import-export code (IEC) of the company may also be withdrawn by the Directorate General of Foreign Trade (DGFT), sources said. Read more