Cautious optimism

Corporate results are showing turnaround signs

A look at the results of 470 listed companies (with minimum revenues of Rs 1 crore) suggests that the second quarter of 2020-21 did see the beginning of an economic revival. Sectors like fast-moving consumer goods (FMCG), information technology (IT), auto ancillaries, steel, and cement all did well. However, this assessment of strong performance must be hedged for several reasons. For one thing, the corresponding quarter (July-September 2019) saw weak corporate performances, creating a low base. The first quarter (April-June 2020) was terrible due to the harsh lockdown. At first glance, the companies saw extraordinary profit expansion year-on-year. While total