Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Earnings signal
BackBack

Earnings signal

Operating margins of manufacturing firms, economic recovery led by consumer demand and bank balance sheets will be in focus this earnings season

Premium


The new earnings season will begin next week. Three broad themes deserve attention.

First, operating margins of manufacturing firms have been expanding in recent quarters because of lower input costs, even through net sales have stagnated as companies have lost pricing power. It will be worth seeing whether the June quarter has more of the same.

Second, the economic recovery is being led by consumer demand while corporate investment has been weak. A comparison of the financial performance of companies in consumer industries with those in the capital goods sector will tell us if there has been any change in underlying economic growth dynamics.

Third, the bank balance sheets problem is, right now, perhaps the biggest risk to economic stability. Despite the clean-up effort, investors are still wary because nobody knows whether the worst is over. The new results season will give us important clues about the banking mess.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Jul 2016, 03:00 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App