A MIXED START

Business Today - - THE BUZZ - – Apra­jita Sharma

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.

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