September 9, 2019 / 11:26 AM / 7 months ago

Indian firms lead earnings downgrades in Asia as slowdown bites

A man walks past a screen displaying news of markets update inside the Bombay Stock Exchange (BSE) building in Mumbai, India, February 6, 2018. REUTERS/Danish Siddiqui

(Reuters) - India led Asia’s earnings downgrades over the past month with analysts expecting more troubles this year due to a consumption slowdown and liquidity crunch in the financial sector.

Over the past 30 days, analysts have slashed Indian firms’ 2019 earnings forecasts by 4.3% - the highest cut in Asia, Refinitiv data shows.

The cut comes as more than 60% of Indian firms missed their consensus earnings estimates in the June quarter, underscoring a lacklustre earnings performance.

India’s economy grew at its weakest pace since 2013 between April and June, largely hit by falling demand for consumer goods such as automobiles and food items, and lower government spending.

Analysts also cut Malaysian firms’ 2019 earnings by 4% and Australian firms by 2.8%.

(Graphic: Change in Asian companies profit estimates, here)

Reporting by Gaurav Dogra and Patturaja Murugbaoopathy in Bengaluru; Editing by Robert Birsel

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