After being through a roller coaster ride during FY09, companies have turned modest in their expectations of what the near future will bring. This is reflected in the earnings guidance for FY10 provided by many India’s corporates, which are trying to cope with the after-effects of the global economic slowdown, the liquidity crisis and the subprime housing mess in the US.
In India, the list of companies providing earning forecasts is largely restricted to the IT, pharmaceutical and fast-moving consumer goods sectors. For the IT sector, the outlook from key markets such as the US and Europe remains bleak. As a result, the companies have lowered their growth guidance for this year.