Effects of Lockdown on Business in India Group Discussion Topic for Airforce Phase2

Impact:

●The contraction in revenues was visible across most major sectors, but it was sharpest in consumer-oriented sectors where revenues contracted to nearly half of the previous year’s levels.

●Sectors like airlines, hotels, retail, automotive and consumer durables, which primarily comprise discretionary purchases, are significantly impacted.

●Discretionary spending: It refers to non-essential items, such as recreation and entertainment, that consumers purchase when they have enough income left over after paying the necessary expenses such as the mortgage and utilities.

●FMCG and consumer foods were relatively less impacted given the essential nature of these purchases.

●Commodity-linked sectors contracted by 34% on a y-o-y basis with almost all the major commodity sectors, including oil and gas, metals and mining, iron and steel and cement, reporting revenue contraction on the back of tepid realizations due to benign commodity prices and subdued volumes.

●Commodity-linked sectors: Sectors which are dependent upon the commodity market (involves buying, selling, or trading a raw product, such as oil, gold, or coffee).

●Industrial and infrastructure-oriented sectors also contributed to the slowdown with 29% and 38% y-o-y de-growth respectively during the quarter, given the restrictions on activity.

●Non-pharma exporters, real estate and construction companies also face one of their worst years.

●Banking Sector: Poor credit growth, including retail loans, along with rising Non-Performing Assets (NPAs) and credit costs will be harmful for banks and Non-Banking Financial Companies (NBFCs).

Reasons:

◆Restrictions on manufacturing, industrial, construction and consumption activities for the major part of Q1 FY2021 due to imposition of nationwide lockdown primarily hurt the financial performance of the Indian corporate sector.

◆Demand-side: Mainly due to customer wariness because of the uncertain economic environment and erosion of purchasing power.

◆Consumer Confidence Survey: One of India’s most lucrative assets is its large consumer base. But people appeared to be less optimistic about their current situation and future expectations.

◆Data from the Reserve Bank of India showed consumer confidence has collapsed.

◆The current situation index and the future expectations index were both below 100, indicating that consumers were pessimistic. A reading above 100 represents optimism.

Consequences:

●Despite the benefit of subdued raw material prices and favourable rupee movement in select sectors like IT, the negligible revenues for the major part of the quarter has:

●Made companies struggle to cover even operating costs.

●Lower realization of profit in commodity sectors (especially metals and oil and gas), with Profit Before Tax margins contracting to multi-year lows.

Way Forward

◆Healthy rural demand on the back of normal monsoons, healthy Kharif sowing and government support in the form of increased the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) allocations, MSME guarantee loans, etc. has been the silver lining in an otherwise bleak environment, offering some impetus to overall demand and economic recovery.

◆Accordingly, select sectors have witnessed faster recovery vis-à-vis earlier expectations. However, the rapid proliferation of the pandemic and intermittent regional lockdowns has the potential to further disrupt supply chains and consumer sentiments so they can better be used with caution.

For more article join on Telegram Search airforcestudy on Telegram App.

https://t.me/airforcestudy

Cyber Security Need of the hour: Group Discussion Topic for Airforce Phase2

Cyber security : Need of the Hour It is the time when whole world is suffering from covid crisis. Currently government websites are being hacked, Banks also reported breach of confidential data from their servers, the energy and nuclear power plants control systems are infected with virus Trojan and social media accounts of celebrities being hacked. People are receiving text messages asking amount or money has been deducted from their bank accounts. The whole Nation is in a state of confusion. It is clear that our country has become a victim of cyber attack and there has been 260% increase in cyber attacks since lockdown induced due to covid-19 pandemic. Due to increasing network and interconnectivity cyber attacks have become more common. Cyber attackers uses different methods for attacks. First , There are many financially motivated organised crime groups uses cyberspace as Warfare to hack business, Networks and demand mo...

Bhuri Bai a tribal champion

Bhuri Bai a tribal champion  From extracting colour from plants and clay and painting on walls to stroking acrylic colours on papers, Bhuri Bai is known as the first tribal woman artist to popularise the art of Pithora painting. Bhuri Bai is an Indian Bhil artist.  Born in Pitol village, it's situated on the border of Madhya Pardesh and Gujrat but pitol is a village of Jhabua district in Madhya Pradesh, Bhuri Bai belongs to the community of Bhils, the largest tribal group  She has won many awards including the highest state honour accorded to artists by the Madhya Pradesh government, the Shikhar Samman. She was awarded India's fourth highest civilian award the Padma Shri in 2021.  Bhuri, belongs to one of the larg with many awards including Shikhar Samman, Madhya Pradesh’s highest state honour.  Nari Shakti Puraskar (Woman Power Award) is an annual award given by the Ministry of Women and Child Development of institutions that w...

cellular organization

Cellular Organisation You know that in order to build a house, bricks are arranged in a certain pattern. Similarly, our body is made up of similar structures called cells, which assemble to form our body. Hence, cells are the structural units of our body. But who discovered and coined the term ‘cells’? Let us explore. The discovery of cells was first made by Robert Hooke. While examining a section of a cork tree under the microscope, he observed small compartment-like structures and named them cell. With the discovery of advanced microscopes (like electron microscopes), the study of the structure of cells and various cell organelles was made possible. Microscope What is a microscope? A microscope is an instrument used to see the objects that are not visible to the naked eye. It magnifies the object several hundred times and makes it clearly visible. Parts of Microscope The important parts of the microscope are: Eye piece...

Rakesh Garhwal

Search This Blog