Last week’s top news stories – in charts

New Delhi: Every Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported. Peppermint In the past week India Inc saw a sharp fall in profit in July-September due to higher input prices, while the government is looking to set next year’s fiscal deficit target at 5.8% of gross domestic product (GDP). Meanwhile, hiring in technology and e-commerce companies has slowed down.

profit squeeze

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Earnings of Indian companies declined in the quarter ended September as persistent inflationary pressures weighed on strong revenue growth. According to a Mint analysis of 2,923 companies, excluding financials and banks, profits fell 25% year-on-year in the July-September quarter. During the same period, raw material costs increased by 45%. The decline came despite a 29% increase in net sales from a year earlier, suggesting a strong consumer demand.

credit uptick

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Following the disruptions caused by the Covid pandemic and the lockdown, FY22 witnessed a pick-up in credit growth on the back of a low base. Credit growth had slowed down dramatically from around 30% since FY05, but showed some improvement in FY22, rising from 5.3% to 10.7% compared to the previous financial year. The region-wise data released by the Reserve Bank of India showed that the central region registered the highest growth of 14.1%, while the northern region lagged behind at 8.7%.

fiscal deficit target

This is the fiscal deficit target as a percentage of GDP the central government plans to set for the upcoming financial year despite high spending pressures and a slowdown in growth, Mint reported. The end of the free food scheme and less subsidy outgo may help the government set a lower fiscal deficit target of 4.5% by FY2016, even though the current year’s fiscal deficit is widely pegged at 6.4% of GDP. The budget is expected to exceed the target.

recruitment difficulty

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As the pandemic-fuelled recruiting frenzy for mid-level workers is cooling off with the recession, headhunters are scrambling to secure hiring mandates from companies, especially technology firms. Mint reported that hiring in technology companies in the current December quarter is down by more than 50% from last year’s levels. The decline in hiring comes against the backdrop of a post-Covid-time recovery in the West, the Christmas holidays and erosion of furlough periods.

leaving

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India’s domestic air passenger traffic rose 10.2% month-on-month to 11.4 million in October, data from the Directorate General of Civil Aviation showed. This is the sharpest sequential growth in passenger traffic since March following the festive season. However, in absolute terms, traffic was only the highest since June and well below the pre-pandemic level of 12.3 million seen in October 2019. However, air traffic may increase due to festive, wedding and holiday season.

road map

According to a Mint report, the National Highways Authority of India (NHAI) will have to build an average length of highways each day in the remaining months to achieve the target of 12,000 km for the full year. Only a third of the target has been achieved so far due to various reasons including disruption from prolonged monsoon. NHAI constructed 4,060 km of national highways in April-October, about 10% less than the same period last year.

corporate leisure

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There has been a steady decline in corporate incorporations in India since May, indicating a slowdown in entrepreneurship amid a slowdown in growth. Mint reported that over 15,905 companies were incorporated in April, which increased to 16,513 in May, gradually declining every month. This number had come down to 10,725 in October. Experts said this was mainly due to the slowdown in growth as otherwise there were no regulatory changes to inhibit incorporation of companies.

Chart of the Week: Tech Layoffs

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US technology companies are laying off mass layoffs as demand for digital services plummets in the time of the pandemic. Firings started rising sharply from April-June, with the current quarter seeing a higher average layoffs per company.

(curated by Manjul Paul)

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