Do it yourself

1QFY20 Earnings - pain aggravating The latest earning season has been disappointing on most counts. If we can avoid getting into the nitty-gritty of the performance relative to corresponding quarter of last year or immediately preceding quarter, we shall find the reported earnings much below par across most sectors. The earnings totally belie the high hopes, the street had from FY20 earnings. There is a stampede amongst analysts to downgrade earnings estimates to bring these in line with the market conditions. The unfortunate part is that the revised earnings estimates also mostly appear driven by the prevailing stock prices and not by the earnings potential and prospects of businesses; and hence may not be reflecting the true state of the anticipated corporate performance. A significant majority of corporate managements guided caution in terms of near term growth, indicating that the 2QFY20 earnings may also not be encouraging. 2HFY20 outlook is generally opti...