3QFY21 - expectations modest, but may still be missed
The latest earnings season (3QFY20) shall gather steam in next few days with some large companies announcing their quarterly numbers. The market expectations this time are at great variance, insofar as the aggregate numbers are concerned. The consensus is limited to the point that financial services, especially banks, and midcaps (especially agri input) shall perform much better. Improved credit growth, NPL recovery, lower tax and slower fresh slippages are the main factors cited for better results by the financial sector. Good monsoon, higher MSP and prospects of a strong Rabi crop are some key factors cited for better performance of agriculture input (chemicals and fertilizers) sector. Strong pricing despite lower volumes is expected to help profitability of cement companies. The earnings in automobile sector are expected to stay muted, as demand failed to pick up despite a good start to festival season. The estimates however vary dramatically from a sharp contraction...