India’s GDP may contract by 16.5 per cent in the April-June quarter of the current financial year as against an earlier contraction of 20 per cent, according to State Bank of India’s research report Ecowrap.
This was associated with lower-than-expected degrowth in corporate GVA (gross value added) which has been considerably better than revenue degrowth in Q1 FY21 as far as the results of the listed companies are concerned.
So far, around 1,000 listed entities have declared their results for the first quarter. The results show more than 25 per cent dip in topline and more than 55 per cent drop in bottom-line.
“In principle, the revenue decline of listed companies has been far outstripped by cost rationalisation thereby not impacting margins,” the report highlighted.
It further said over the months of July and August, coronavirus has now quite penetrated the rural areas. The percentage of cases in rural districts to total new cases has risen to 54 per cent in August.
Also, the number of rural districts with less than 10 cases have reduced significantly. Andhra Pradesh and Maharashtra have been impacted more severely with increasing coronavirus penetration in rural areas.