Earnings improve, but not yet in high gear; India Inc net up 10.6% in Q3

Information technology services and pharma, India's two biggest exporting sectors, continue to face headwinds

A year after demonetisation-induced economic disruption, corporate earnings are yet to move into high gear as expected by the Street. Companies focused on the domestic market, especially consumer goods players, have recovered some of their mojo in the third quarter ended December 2017 (Q3FY18), but their numbers, too, fail to sizzle despite a favourable or low base-effect. Worse, on the cost side, higher energy and commodity prices have begun to bite domestic manufacturers, with companies reporting an increase in per unit cost of raw materials and energy.

 

The combined net profit of the 1,395 companies, which have declared