THREE CHEERS: 850 COS NET UP 13%
With 4 out of 5 firms in black & quite a few posting astounding nos., the earnings picture looks promising for rest of the year
INDIA Inc has begun the new financial year on a pleasant note, with four out of five companies making profits in the first quarter. Analysts see better earnings for the rest of the year on falling cost of operations.
An ETIG study of 850 listed companies saw their net profits rising 13% over the year-ago period after three dismal quarters, helped by falling raw material costs, lower cost of borrowing and modest growth in wage bills. The study did not include banks and public sector oil companies as their fortunes are directly linked to government policies.
Among the 22 Nifty companies that have declared quarterly results Nifty is the benchmark stock market index that comprises 50 firms the earnings story is even more gripping. These firms together reported a 25% increase in standalone net profit for the quarter over the year-ago period after witnessing modest earnings growth ranging between 3% and 8% in the previous four quarters.
Some companies that announced spectacular results include cement maker ACC, which posted 85% higher net profit, Mahindra & Mahindra (151%), Grasim (61%), Dr Reddys (120%) and Hero Honda (83%).
This could set the tone for better earnings in the coming months, with companies and analysts seeing lower cost of operations going forward. We can expect continued increase in profits as companies are unlikely to see input costs going up in the near term, said DR Dogra, deputy managing director of credit rating agency CARE.
The bottomline performance was boosted by lower raw material costs, which declined 3% for the first time in the past four quarters.
With 4 out of 5 firms in black & quite a few posting astounding nos., the earnings picture looks promising for rest of the year
INDIA Inc has begun the new financial year on a pleasant note, with four out of five companies making profits in the first quarter. Analysts see better earnings for the rest of the year on falling cost of operations.
An ETIG study of 850 listed companies saw their net profits rising 13% over the year-ago period after three dismal quarters, helped by falling raw material costs, lower cost of borrowing and modest growth in wage bills. The study did not include banks and public sector oil companies as their fortunes are directly linked to government policies.
Among the 22 Nifty companies that have declared quarterly results Nifty is the benchmark stock market index that comprises 50 firms the earnings story is even more gripping. These firms together reported a 25% increase in standalone net profit for the quarter over the year-ago period after witnessing modest earnings growth ranging between 3% and 8% in the previous four quarters.
Some companies that announced spectacular results include cement maker ACC, which posted 85% higher net profit, Mahindra & Mahindra (151%), Grasim (61%), Dr Reddys (120%) and Hero Honda (83%).
This could set the tone for better earnings in the coming months, with companies and analysts seeing lower cost of operations going forward. We can expect continued increase in profits as companies are unlikely to see input costs going up in the near term, said DR Dogra, deputy managing director of credit rating agency CARE.
The bottomline performance was boosted by lower raw material costs, which declined 3% for the first time in the past four quarters.
