INSUBCONTINENT EXCLUSIVE:
MUMBAI: The initial trend in the third-quarter results of a sample of 70 companies so far shows a double-digit growth in the aggregate net
profit but a weaker single-digit growth in net sales, thereby reflecting the tax cut benefit at the bottom line amid poor demand.
Aggregate
net sales of the sample grew by 3.9 per cent whereas net profit increased by 15 per cent year-on-year in the December quarter.
The growth
numbers are likely to vary significantly with more companies reporting numbers in the coming weeks
the information technology (IT) sector
market, economic commentary looks sombre and corporates are likely to reel under the pressure of slowing demand for yet another quarter
Motilal Oswal Financial Services (MOFSL) in a preview report.
While overall trend in the topline is expected to remain weak, some analysts
expect a marginal improvement in the third quarter over the previous one
estimating 0.3 per cent aggregate revenue growth for the companies it covers.
At Rs 1,56,802 crore of revenue from operations, RIL
Its net profit of Rs 11,841 crore was 28 per cent of the aggregate profit
The nine IT companies that have declared results so far contributed 46 per cent to the net profit and 32 per cent to the revenue of the
After excluding them from the sample, net sales shrank to just 2 per cent while profit growth decelerated to 10 per cent.
Any signs of
