Corporate earnings: Why FY19 may be 11th straight year of missed estimates

High crude oil prices, interest rate hikes, dearer rupee, and elevated commodity prices to weigh on India Inc's profits

Vishal Chhabria

In yet another disappointment for investors, the current fiscal year may end up with lower than estimated earnings for the Indian corporate sector. 
According to the data, 2018-19 (FY19) is likely to be the 11th consecutive year of the S&P BSE Sensex earnings falling short of the consensus estimates. The last time the actual Sensex earnings came ahead of estimates was in 2007-08.
The bigger worry is that the miss for FY19 is likely to be significant even after assuming macro factors such as crude oil prices, rupee, input costs, and interest rates, do not worsen from the current levels.

Also Read

Oil prices will average close to $80/barrel in 2019, says S&P Global Platts

Repo rate hike: Inflation spectre forces hand, but RBI keeps options open

Nifty earnings see 17% cut in FY19 amid rising oil prices, bond yields

Dollar nearing peak but oil remains a headwind: Morgan Stanley's Garner

Platts sees crude oil prices in $75 - $80 a barrel range for next 18 months

Punj Lloyd Q2 net loss widens to Rs 14.65 bn on defaults in repayments

Nestle India Q3 net profit up 30% to Rs 4.46 bn; sales rises to Rs 29.39 bn

Adidas runs past rivals, manages to grow profit 53% to Rs 1.74 billion

Capital First Q2 PAT zooms over three-fold to Rs 1 bn, core income up 49%

Bharat Electronics Q2 net rises 39% to Rs 5.71-bn, sales turnover grows 35%

First Published: Oct 29 2018 | 5:30 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to