PRESS TRUST OF INDIA
New Delhi, 7 July
June quarter corporate earnings are likely to go down as one of the worst in the last three years with companies in automobile, realty, road and airport infrastructure, capital goods and engineering sectors expected to see significant pressure, according to a survey.
“With the economy under stress, corporates across a large number of sectors are set to report significant drop in their top line sales and net earnings in the first quarter of the current fiscal ending June 2013,” the chief finance officer (CFO) survey conducted by industry body Assocham said.
As per the survey, as many as 81 per cent of the 131 CFOs covered in the survey indicated that corporates in these segments would report bad earnings during April-June FY’14.
“The first quarter of the fiscal 2013-14 is likely to go down as one of the worst in the last three years with the situations deteriorating fast rather than improving,” it said.
High interest rates, shrinking margins in the wake of huge pressure on sales, rising cost of raw materials and inability to raise fresh resources are among the biggest challenges being grappled with the CFOs, the survey conducted by the chamber said.
The situation is likely to persist in the second quarter of the current fiscal as well, it added.