People expecting Indian Cos to grow in the quarter gone by are in for disappointment: Ajay Srivastava, Dimensions Consulting

Ajay Srivastava, Dimensions Consulting Pvt. Ltd., in a chat with ET Now, gives his opinion on the grwoth of the corporate sector.


If I look at the earnings consensus, brokerages still are of the view that for the quarter gone by, corporate India will grow and the ranges from 15% to about 18%. Do you think those who are expecting Indian companies to grow for the quarter gone by, they could be in for some disappointment?

Of course they will be in for disappointment. The rating agencies have got it all wrong quarter to quarter and the only one, which will gain and the sector, which will gain is which is export dependent. There, there is a bonanza of 15% profit, which is clearly coming into the last quarter. A lot of people have booked forward. They will record the profits there. A lot of them have liquid positions, so that sector will gain. The rest of the sector, capital goods sector, the banking sector, banking sector again will be camouflaged by restructuring, etc., but the true profitability of banking sector would be heavily negative. So no, I do not think that analysts’ projections are going to be met. It is going to be much lower.