Covid second wave unlikely to dent FY22 earnings, say analysts

While there will be some sectors (such as entertainment, hotels, aviation etc.) that will bear the brunt of the second Covid wave, the loss will be compensated by strong earnings in some other sectors

Despite the sharp rise in Covid cases and the ensuing lockdown imposed across key cities across India that can dent the economic momentum, analysts remain optimistic on the earnings trajectory of India Inc and have not yet downgraded / cut projections for fiscal 2021-22 (FY22). 

“Corporate earnings are yet to come back to their pre-Covid levels in realistic terms even though they may look optically higher due to the low base effect of the last year. Despite the recent lockdown measures, the companies engaged in essential services continue to run. The curbs can, at best, slow the earnings growth for