The continuation of strong performances by companies like Adani, SBI, Tata, Axis Bank, etc. will be vital to India’s economic recovery as it attempts to re-discover pre-pandemic growth momentum
Even as the threat of the second wave of Covid-19 and the predicted third wave looms large, the Indian economy has been resilient. The Reserve Bank of India (RBI) said that while the economic activity has been dented, it has not been crippled. Unlike the first wave, the impact of the second wave has not been as severe, according to the central bank.
Many Indian companies have posted steady figures in the last quarter, with some even managing to register record highs. The metal sector was a major contributor in this regard, with Information Technology (IT) and cement industry posting stable earnings. The renewable energy and financial sectors also registered solid figures as companies like Adani, SBI and ICICI performed remarkably well.
In what has been viewed as a slow year for the renewable energy industry, Adani Green posted a Q4 net profit rise of Rs 105 crore compared to Rs 74 crore the previous fiscal – a rise of over 8%. Recently, the company acquired SB Energy which will increase its power generation capacity.
Tata Power has also done well this quarter with its solar arm increasing the production capacity to meet growing demands. This comes at a crucial time when India’s energy demands are on the rise with requirements predicted to quadruple in the coming years.
The financial sector also witnessed strong performances. SBI reported a 80.1% year-on-year (YoY) growth in net profit which reached Rs 6,451 crore in Q4. Its bad loan stockpile also decreased by 15%, boosting investors’ confidence and driving up its shares. Similarly, Punjab & Sind Bank also registered a Q4 net profit of Rs 161 crore after spending eight consecutive quarters in the red.
Such positive results are expected to bolster the economy and stabilize it during the next few months. Power and finances will be the focal point of India’s efforts as it gets ready to find its feet again. The continuation of strong performances by companies like Tata, Adani, SBI, Axis Bank, etc. will be vital to India’s economic recovery as it attempts to re-discover pre-pandemic growth momentum.