Daily Voice: Some new-age tech companies have shifted their focus to increasing profits and positive cash flow. But for the change in investor stance, these companies will have to remain profitable for several consecutive quarters.
Daily Voice: India seems to be in the best position amid the fear of global economic slowdown and rising inflation. But despite all this, we cannot live without being affected by the events happening in the world. At this time, all the major economies of the world are so deeply connected to each other that the effect of any good or bad news is seen on everyone.
Interest cost pressure on companies increased in December quarter
Talking about the december quarter results, he said that if we look at the results of more than 3000 companies in this period, their earnings have increased by 17.4 percent year-on-year. Whereas in the June quarter of the same financial year, this average was 36 percent.
Similarly, due to strong results of banking and finance companies, the profit of companies has increased by an average of 5.3 percent in the third quarter. At the same time, in the same period last year, the average profit of companies had seen an increase of 38.8 percent.
If we exclude banking and finance companies, then in the third quarter ended December 31, 2022, the average profit of companies has seen a decline of 10.5 percent. In the December quarter, we saw a decline in the profits of companies for the second consecutive quarter. This gives us an idea of how much pressure is being created on companies due to rising interest costs.
New-age technology is difficult ahead
Talking about new-age technology-based companies, he said some new-age tech companies have shifted their focus to increasing profits and positive cash flow. But for a change in investor stance, these companies will have to remain profitable for several consecutive quarters. Along with this, until their expensive valuation comes to the right level, investors will not have confidence in these companies. In the current situation, these companies look very risky.
The banking sector is very good from the point of view of FY2024.
Which will be your most preferred sector for FY2024? Responding to this question, Banerjee said that at present the NPA level of banks is at a very low level. Given the clean and strong balance seat, the banking sector looks quite good from the point of view of FY2024. Banerjee says that the biggest challenge for the Indian market at this time is the slowdown in the domestic economy and the possible slowdown of the global market.