A MIXED START
SEPTEMBER QUARTER earnings have been mixed so far with no major disappointments or surprises. Net profit of 126 BSE500 companies that had declared results as of October 26 evening rose 14.1 per cent year- on-year on the back of 25.3 per cent jump in net sales. However, after excluding banking, financial services and insurance players and oil firms, numbers turn bleaker, with the combined net profit of 95 companies rising 6.72 per cent even as revenues rose 16 per cent during the period. In our sample, excluding BFSI and oil firms, 48 companies have reported a drop in profit margins. A cause of worry for domestic focused companies could have been the rise in input costs and interest outgo. Some firms, such as HUL, GSK Pharma and Adani Ports, saw less-thanexpected results due to one-time expenses or forex losses. Since traditionally the results of the second batch are poorer than that of the first batch, the Q2 earnings scorecard is unlikely to improve from here.