Covid-19 impact: Earnings shrink as more firms post results for Q1

PBT of 748 firms down 46% YoY, net sales by a quarter; manufacturers hit hard

The exuberance of early bird results has given way to a sense of worry as more companies have declared their results for the April-June quarter (Q1FY21).

The combined profit before tax (PBT) of 748 companies, which have declared their results for Q1FY21, is down 46 per cent year-on-year (YoY). Their net sales went down by a quarter as the Covid-19 lockdown led to a sharp fall in economic activity.

The numbers are, however, far worse for manufacturers, who bore the brunt of the lockdown. The combined PBT of 632 companies, excluding banks, non-banking financial companies (NBFCs), insurance and oil &