It ain't over yet

India Inc's third-quarter scorecard will ensure that rerating of multiples is still some time away

Sanjit Kundu

Don’t be lulled by the benchmark indices’ strong surge in the New Year. The ongoing earnings season will prove to be far from comforting, it seems. Aditya Narain of Citigroup believes the third quarter will signal a demand slowdown as sales growth moderates from 20%-plus levels to 12%. “There is a meaningful skew across sectors: pharma and IT should see strong FX gain-driven performance along with the cement sector, while energy, metals and telecom will continue to see strain,” mentions Narain in a report.