The distress faced by small and unorganized companies during the second covid wave and gains in market share of the bigger firms who remained largely unscathed would reflect in their June quarter earnings. The quarterly earnings season began on 8 July with Tata Consultancy Services Ltd.Analysts said smaller businesses lost market share to bigger rivals despite FY21 being a turnaround year in corporate earnings for India Inc., marked by margin expansion and high deleveraging of balance sheets. He said once the lockdowns are relaxed entirely, some of the unorganized players will adapt and return to business, but several others would have been forced to down shutters. According to JM Financial, organized firms are best placed to pass on price increases to offset higher raw material costs. The white goods and durables market comprising television, washing machines, air conditioners, refrigerators and dishwashers is dominated by large multinationals.

Source: Mint July 18, 2021 18:45 UTC