Looking at a flattish quarter for Indian IT space for Q3: Ajay Bagga
Ajay Bagga, Market Expert, says “some of the NBFCs have a lot going in the rural economy where the demand has still not picked up. So, I am a little circumspect on this NBFC segment. I think margins will come down and the growth trajectory of revenues as well as profits will come into single digit this year. I think that is the anticipation.”
Fundamentally, how is Shriram Finance looking? Where do you see it headed from here on now?
Ajay Bagga: I do not talk about particular stocks, but I will take it to the broader NBFC sector. We are expecting revenues and margins to go down over the year. The growth trajectory to go down. Single digit growth in profits. So, the kind of run up today we are seeing in some select NBFC counters, we should be cautious about it. The cost of capital is increasing and the margins are under pressure. RBI has been putting pressure as well on certain segments of the NBFCs.
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Offering CollegeCourseWebsiteIIM LucknowIIML Chief Executive Officer ProgrammeVisitIIM LucknowIIML Chief Marketing Officer ProgrammeVisitIndian School of BusinessISB Chief Technology OfficerVisitIn this, truck finance and vehicle finance have been doing well, but what we have seen is that the end user usage has not really picked up yet and the linkages with the rural economy are strong. We will have to wait and watch. Some of the NBFCs have a lot going in the rural economy where the demand has still not picked up. So, I am a little circumspect on this NBFC segment. I think margins will come down and the growth trajectory of revenues as well as profits will come into single digit this year. I think that is the anticipation.
TCS and Infosys have delivered their numbers.
