Surge in inflation transitory, opine RBI economists

by Nidhi Bhati

Economists at the Reserve Bank of India (RBI) see the surge in inflation as transitory. They believe that the recent spike is a result of release of pent-up demand. High frequency indicators show pressures easing, which may get support from normal monsoon though core inflation is at its highest since 2014. Rising prices of edible oils and protein-rich items pushed the retail inflation to a six-month high of 6.3 per cent in May, breaching the comfort level of the RBI.

References
1. https://economictimes.indiatimes.com/news/economy/indicators/rbi-economists-call-rising-inflation-transitory-owing-to-pent -up-demand/articleshow/83576454.cms
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
6.9 -1.9
Consumer Sentiments Index
Base September-December 2015
52.1 0.0
Consumer Expectations Index
Base September-December 2015
54.8 0.0
Current Economic Conditions Index
Base September-December 2015
48.0 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Sep 20 Dec 20 Mar 21 Jun 21
New projects 1.99 1.25 1.87 1.81
Completed projects 0.76 0.85 1.10 0.57
Stalled projects 0.06 0.31 0.14 0.16
Revived projects 0.25 0.15 0.21 0.12
Implementation stalled projects 0.09 0.15 0.30 0.27
Updated on: 28 Jul 2021 3:28PM
Quarterly Financials of Listed Companies
(% change) Sep 20 Dec 20 Mar 21 Jun 21
All listed Companies
 Income -6.3 1.6 15.0 34.0
 Expenses -10.3 0.1 7.4 34.8
 Net profit 47.5 58.0 304.2 75.7
 PAT margin (%) 8.3 8.4 9.1 12.9
 Count of Cos. 4,419 4,433 4,211 382
Non-financial Companies
 Income -10.5 0.2 17.7 51.1
 Expenses -14.2 -0.7 10.6 56.0
 Net profit 31.7 54.4 218.4 81.9
 PAT margin (%) 8.1 8.8 9.3 13.0
 Net fixed assets 5.9 2.3
 Current assets 0.7 4.8
 Current liabilities -2.7 0.8
 Borrowings 8.3 -4.3
 Reserves & surplus 4.2 12.3
 Count of Cos. 3,278 3,293 3,143 289
Numbers are net of P&E
Updated on: 28 Jul 2021 3:28PM
Annual Financials of All Companies
(% change) FY19 FY20 FY21
All Companies
 Income 13.4 0.0 2.8
 Expenses 13.8 -0.1 0.4
 Net profit 14.2 -7.3 33.8
 PAT margin (%) 2.1 2.1 9.5
 Assets 9.8 8.3 17.1
 Net worth 8.5 4.3 18.7
 RONW (%) 3.7 3.6 10.7
 Count of Cos. 31,492 30,180 1,463
Non-financial Companies
 Income 14.1 -1.9 -0.8
 Expenses 14.4 -1.7 -2.3
 Net profit 20.6 -18.4 15.0
 PAT margin (%) 2.9 2.4 10.9
 Net fixed assets 5.6 9.7 7.0
 Net worth 7.9 1.9 18.0
 RONW (%) 6.3 5.1 13.5
 Debt / Equity (times) 1.0 1.1 0.5
 Interest cover (times) 2.3 2.0 5.8
 Net working capital cycle (days) 73 80 32
 Count of Cos. 25,254 24,140 1,091
Numbers are net of P&E
Updated on: 28 Jul 2021 4:45PM