India Economy Watch - Macro Lessons From The Q2 FY22 Corporate Results: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The Reserve Bank of India released its Q2 FY22 financials of listed non-government, non-financial (NGNF) companies. Given below are the few macro lessons from the following: Net sales for the listed non-government, non-financial corporate sector (comprising of ~2,700 companies) grew 32% YoY in Q2 FY21, with aggregate sales at a record high of Rs 11.6 trillion in the quarter. Total expenditure grew 36% YoY in Q2 FY22, led by a 46%/38% growth in ‘raw materials’/‘power and fuel’ costs. Using data for the past decade (since Q3 FY12), we find that corporate sales are very strongly correlated with headline Wholesale Price Index measure of inflation. Both sales growth and headline WPI inflation have been at extreme levels during the past few quarters. With lower debt and interest rates, the interest coverage ratio improved to a decade high (this data is available only since FY12) of 5.3 times in Q2 FY22 vis-a-vis 3.7 times a year ago and 3.4 times in FY20..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Economy Watch - Macro Lessons From The Q2 FY22 Corporate Results: Motilal Oswal

India Economy Watch - Macro Lessons From The Q2 FY22 Corporate Results: Motilal Oswal

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