"Man, so long as he remains
free, has no more constant and agonizing anxiety than find as quickly as
possible someone to worship."
-
Feodor Dostoevsky(Russian, 1821-1881)
Word for the day
Swashbuckler (n)
A swaggering swordsman,
soldier, or adventurer; daredevil.
(Source: Dictionary.com)
Malice towards
none
Has Bangladesh finally
replaced Pakistan in terms of popular cricketing rival of India?
Look at what you own, Sensex may mislead you
The recently concluded result season (4QFY15) was one of the worst
in past one decade. The Sensex earnings fell 7% yoy, led primarily by
commodities. More companies missed the earnings forecasts of analysts as
compared to the companies which met or beat the forecasts. Pharma sector
perhaps disappointed most. Consumers, particularly discretionary, also let down
the street expectations.
The most disappointing feature was broad based revenue contraction
led by both price erosion as well capacity underutilization.
Though most analysts have put up a brave face - downgrading FY16
earnings but upgrading FY17 earnings, top line contraction, first since 2009,
must be giving some jitters.
In the whole India story, demand has always been a given. 1.25bn
strong population with burgeoning middle class and more than 2/3rd workforce
has always supported the assumption of resilient underlying demand.
Now if even in "peacetime" this demand has shown
contraction, it needs a close examination. This examination is also important
given the fact that revenue growth has been on the decline ever since 2008
(except a stimulus and pay commission led bounce in FY10).
I believe that we need to examine the competitive strength of
India Inc in the emerging global and domestic environment. It is probable that
even many large companies may not survive in the changing competition landscape.
The lost pricing power and market share may never be regained. Though we may
see an "aggregate revival", it may not matter much if the companies I
own do not grow in their business and profitability.
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