Heat Wave, Elections in India Create Unlikely Earnings Winners and Losers
- Rural demand recovery to expand Bajaj Auto sales growth
- TSMC profit growth seen strong as June sales beat expectations
Demand from villages and smaller towns outpaced that of cities in the April-June quarter in a sign of India’s broad-based economic growth.
Photographer: Prashanth Vishwanathan/BloombergA scorching summer and a long-drawn election in India may throw up some unlikely winners and losers this earnings season with consumption-linked firms like Bajaj Auto Ltd. slated to report this week. The retail business of Reliance Industries would also be closely watched in the conglomerate’s earnings Friday.
Demand from villages and smaller towns outpaced that of cities in the April-June quarter in a sign of India’s broad-based economic growth. Supermarkets operator Avenue Supermarts Ltd., which has an extensive presence in India’s smaller towns, reported a 17% increase in 1Q profit Saturday, though it narrowly missed earnings estimate. Motorcycle maker Bajaj Auto’s monthly sales reports have signaled fewer inquiries and deferred purchase decisions by potential customers due to the extreme weather. Both stand to benefit from forecast of an above-normal monsoon.