Mumbai, Nov 28 (PTI) The SBI Survey cut the country’s GDP growth to 5.8 per cent for the second quarter, 30 basis points below the median estimate, due to a weak manufacturing sector and tight margin compression.
The government will announce the official figures on November 30.
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In a report on Monday, SBI Research headed by Soumya Kanti Ghosh said that corporate results, operating profit of companies, excluding the banking and finance sector, declined by 14 per cent in Q2FY23 against a growth of 35 per cent in Q2FY22, per Some of the top row continued. growing at a healthy rate. Net sales were up 28 percent, while the bottom line was down 23 percent from the year-ago period.
Additionally, corporate margins appear to be under pressure, as reflected in the results of around 3,000 listed entities, excluding the banking and finance sector, due to higher input costs with declining operating margins, down 17.7 percent in Q1FY22. 10.9 percent in Q2FY23.
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Because of this and the wide difference to the market consensus (6.1 percent) regarding the Q2 GDP numbers, the SBI sees the economy printing 5.8 percent, Ghosh said, accounting for the two-month delay in the quarterly GDP data. It also pegs full-year growth at 6.8 percent, 20 basis points below the RBI estimate.
The SBI’s forecast, based on its composite leading index, which is a basket of 41 leading indicators based on monthly data, shows a slowdown in economic activity between June and September but increased economic activity in October, making Q3 growth more optimistic. does
However, Ghosh said, several signs point to the economy making resilient progress since Q2, despite the drag from global spreads, higher inflation and some slack in external demand as geopolitical developments take their toll on global trade.
(This is an unedited and self-produced story from Syndicated News, The Latest Staff may not have modified or altered the body of the content)