Markets
BSE See
NSE See
27,561.38
-550.93 (-1.96%)

Five Stars of India Inc.

| 2/23/2012 9:30 PM Thursday

December 2011 was an eventful quarter for India Inc. Be it on the global front or on the domestic front, every now and then certain events kept investors busy. On the global front, the European debt crisis and slower-than-expected growth in the US markets kept everyone on their toes. On the domestic side, the sharp depreciation of the rupee (eight per cent) against the US dollar, inflation worries and the worst-ever IIP numbers (negative 5.10 per cent in October 2011) made sure that India Inc. did not get any respite. What added to the woes was the government inefficiency that led to policy paralysis. While these were the major negative factors, the biggest positive news came in when the RBI took a pause on the rate hike front.

All in all, it was a mixed quarter, and the corporate results too were on similar lines. Expectations on the corporate performance front were already low from the December 2011 quarter on account of the negative factors mentioned above, even after considering the higher base of the corresponding quarter (QE December 2010).

If we take a look at the results for the December 2011 quarter, they appear to be neither good nor bad. Rather, they are very much as they were expected to be. We analysed the results of 3706 companies, and at the gross level the outcome suggests that the for QE December 2011, topline growth came in at around 26 per cent while bottomline growth was around 43 per cent as compared to the December 2010 quarter.

India Inc.'s Performance (Excluding Refineries) (Rs. Cr)
ParticularsDec 2011 QuarterDec 2010 Quarter% Change
Sales 1207110 982426 23
Operating Profit 306431 263539 16
Interest 157057 108080 45
Extraordinary Items 1209 778 55
PBT 146173 148946 -2
PAT 94676 101481 -7

The 43 per cent bottomline growth may look surprising to many, particularly because we mentioned right at the outset that the results appear to be neither good nor bad. However, a deeper scrutiny of the data reveals that the profits were skewed due to higher earnings from Oil Marketing Companies and also on account of extraordinary income; aberrations that need to be considered while looking at the growth that came in at the bottomline level.

As a standard practice, we adjusted for both these factors and arrived at the true picture after doing so. This shows a topline growth of 23 per cent and a decline in net profit by around 7.20 per cent as compared to the December 2010 quarter. On a sequential basis, the topline grew by six per cent and there was a marginal increase of 1.50 per cent on the bottomline front.

If we take a look at the results, a few factors emerge straight away. First, the raw material prices remained firm despite many expecting some amount of easing in December 2011. Higher raw material prices that could not be passed on to customers impacted the operating margins, which witnessed a decline of around 150 basis points and stood at 25.40 per cent. We are of the opinion that the high cost inventories that were carried forward might be the reason behind the same, and we may witness some improvement on the margins front in the coming quarters.

Find More Articles on: DSIJ Magazine, Cover Story, Markets, Market Outlook

«« First « Previous |1 2 3 4 ... 8 9 10 11 12 13 14 | Last ››
collapse Related Readings collapse
Information Requested is Not Found

DSIJ
Mindshare

Bears on a Rampage on D-Street

Bears on a  Rampage on D-Street

The Indian markets seemed to know only one direction today, i.e. downward, leaving investors and market watchers shocked. The Nifty index ended at down by 160 points and Sensex closed 550 points lower at 27561. The Asian markets also closed in the red.

P-notes may again hit market hard

P-notes may again hit market hard

In response to this news the S&P BSE sensex sank more than 500 points on Monday (27th July). As per the media reports, Revenue Secretary Shaktikanta Das informed that,”the government was yet to take a call on the SIT's report on the instrument which is believed to facilitate investment of slush money into Indian financial markets.” 

 

Reliance Industries net profit up by 4.45 per cent in Q1FY16

Reliance Industries net profit up by 4.45 per cent in Q1FY16

Reliance Industries (RIL) recently posted it's June 2015 quarter results. The company's revenue declined by 26.29 per cent to Rs 77130 crore in Q1FY16 on yearly basis due to lower product prices in line with lower crude oil prices. RIL’s exports of refined products from Indian operations stood at USD 5.1 billion during the Q1FY16 as compared to USD 10 billion in Q1FY15. In terms of volume, exports of refined products were 8.5 Million Metric Tons (MMT) during Q1FY16 as compared to 10.5 MMT in Q1FY15.


Net Profit of Persistent Systems Slumps around 12 per cent Q-o-Q in Q1 Results

Net Profit of Persistent Systems Slumps around 12 per cent Q-o-Q in Q1 Results

Recently, Persistent systems announced its Q1FY16 results, the INR revenue of the company is slightly up by 0.6 per cent amounting to Rs 500.4 crore as  compared to Rs 498 crore in Q4FY15. The Dollar revenue slid down by 1.8 per cent to USD 7.86 crore as against USD 8 crore Q-o-Q. 

Sun Pharma seeks to tap overseas debt market to raise upto $1 billion

Sun Pharma seeks to tap overseas debt market to raise upto $1 billion

Sun Pharmaceuticals Industries controlled by Sanghvi issued a profit warning last week is in news for tapping global markets to raise funds . According to reports the company is looking to tap the global debt markets to raise as much as $ 1 billion. The funds to be raised via debt markets is expected to be done by selling offshore bonds. As per media reports the size of the bond issuance is expected to be in the range of $500- $ 1000 million with five to 10 year maturities. The funds may be used for refinancing and capital expenditure plans.

 

Index Trends And Stocks In Action July 27, 2015

Index Trends And Stocks In Action July 27, 2015

The Indian Indices ended with deep losses in the absence of any positive trigger and weak earnings reported by Axis Bank and TVS Motors worsen sentiments. On the daily chart the index has formed a bearish candlestick pattern along with average volumes.

Market Likely To Open In Negative

Market Likely To Open In Negative

Asian stocks market opened lower on Monday on the back of offshore declines and as the fall in commodity prices continues to sap risk appetite. A SGX CNX Nifty Index future for July delivery was down 51 points at 8,500. Indian markets likely to open in negative. The market is likely to stay volatile this week ahead of F&O expiry on Thursday. Key earnings today: Ambuja Cements, Tech Mahindra, Torrent Pharma

Sensex, Nifty end on a disappointing note

Sensex, Nifty end on a disappointing note

The Indian benchmarks faced another unsatisfactory day, with most of the stocks seeing deep dives to close below its respective supports. After the mid-session Capital Goods, Banking and Auto index were hammered badly. As a result the Nifty ended lower by 68 points at 8521 and Sensex was 258 points down at 28112. The indices ended in the red by 0.87% and 0.79% respectively. In today’s session, both the indices ended lower around 0.80 percent.

Biocon shares gain on strong Q1 results

Biocon shares gain on strong Q1 results

The shares of BIOCON rallied over 4 per cent to intraday high of Rs 478 on Friday (24th July) in the BSE, after the company reported strong (consolidated) results for the quarter ended 30th June 2015, which was declared on Thursday (23rdJuly) after-market hours. BIOCON reported 23 per cent year on year increase in net profit to reach Rs 126.24 crore in Q1FY16, which was Rs 102.91 in Q1FY15.

Lupin disappoints in first quarter despite GAVIS acquisition

Lupin disappoints in first quarter despite GAVIS acquisition

Lupin recently reported June 2015 quarter result. Lupin's consolidated revenue dropped by 5.7 per cent to Rs 3150 crore in Q1FY16. The company's total expenditure increased by 4.83 per cent to reach Rs 2334 crore in Q1FY16 on yearly basis. 

Subscribe to
Newsletter

news letter

More for the early bird.

Get the pre-market reports and breakfast news right in your inbox. See latest »

Market
CHIT CHAT

What is your view on markets today?

500  Characters Remaining.
Please LOGIN  to post your comments or Click here to go back.
Vivian Jeansson Jul 28 02:33AM
ttsf
Dipak Deka Jul 28 01:56AM
market crash..
MAYANK TIWARI Jul 27 09:19PM
Guys, i m new here could you please tell me what should i do as a begineer as i dont know much about the market .how should i approach it.
kartik sharma Jul 27 09:18PM
which companys shares will be best for long term
C.C. Lawrence Jul 27 08:00PM
I bought 2 lot axisbank july futures @579 tomarrow shall i get out hold or thursday