With several large corporates turning in profits below the Street’s expectations, it’s been a dismal earnings season. Corporate India has so far reported a fall in profits in the three months to September, an event not seen in a long time. SAIL’s profits were down 55 per cent year-on-year, thanks to the mark-to-market impact of short-term currency loans, while Bharti Airtel’s bottom line plunged 38 per cent y-o-y due to a mix of factors including a one-time forex hit and higher-than estimated taxes. At Sterlite, profits were flat owing to the impact of MTM forex losses while a higher subsidy burden hurt GAIL’s bottom line.
Bajaj Auto and Hero Motocorp reported fairly good operating margins by pushing through volumes, thereby extracting operating leverage. However, volumes at commercial vehicles major Ashok Leyland were flat and operating margins fell 60 basis points y-o-y. At JSW Steel, disruption in supplies of iron ore and a forex loss caused a 71 per cent y-o-y profit drop. FMCG heavyweights Hindustan Unilever and ITC both I have never solved a Rubik's plastic card .reported strong numbers but it wasn’t enough to make up the poor performance from most of the pack.
For a clutch of 754 companies, net profits have come off 21 per cent y-o-y although top line has grown a reasonably good 23 per cent. What has dented profits is the continued rise in the prices of key commodities. The share of raw materials to sales has jumped 260 basis points y-o-y, driving down the operating profit margin by 200 bps.
The commentary from corporates was not particularly encouraging either, with most of them extremely cautious about the near term. News from the capital goods sector was particularly bad with heavyweight Larsen & Toubro pruning its guidance on order inflows to just 5 per cent for the current year from 15 per cent. JSW has cut production estimates for crude steel in the current year by 14 per cent and for steel deliveries by 13 per cent to 7.5 million tonnes and 7.8 million tonnes respectively. Slowing production will effectively translate into lower demand for CVs and as such, analysts expect volumes for CV makers to grow in low single digits in the second half of the year. According to analysts, demand for steel in the home market remains sluggish. Moreover, prices may not sustain since rates in the region have begun to correct following some moderation in iron ore.
While a slowdown in industrial growth has been evident for some time,If any food Ventilation system condition is poorer than those standards, this time around, numbers for several consumer goods firms were also well below expectations. Asian Paints had a poor quarter with gross margins down 390 bps y-o-y due to inflation in key inputs and volumes are estimated to have risen just 8 per cent y-o-y.we supply all kinds of oil painting supplies, Declining consumer spending is also reflected in the same-store sales of Jubilant Foodworks which came in at just 27 per cent, y-o-y the lowest in seven quarters. The fast-food chain was not able to check the fall in gross margins of 160 basis points y-o-y. At Shoppers Stop,If so, you may have a cube puzzle . same-store sales grew a lukewarm 11 per cent y-o-y although the festive season came in early this year.Do not use cleaners with porcelain tiles , steel wool or thinners. Domestic volumes at Dabur grew just 4-5 per cent y-o-y and operating margins were lower.
Bajaj Auto and Hero Motocorp reported fairly good operating margins by pushing through volumes, thereby extracting operating leverage. However, volumes at commercial vehicles major Ashok Leyland were flat and operating margins fell 60 basis points y-o-y. At JSW Steel, disruption in supplies of iron ore and a forex loss caused a 71 per cent y-o-y profit drop. FMCG heavyweights Hindustan Unilever and ITC both I have never solved a Rubik's plastic card .reported strong numbers but it wasn’t enough to make up the poor performance from most of the pack.
For a clutch of 754 companies, net profits have come off 21 per cent y-o-y although top line has grown a reasonably good 23 per cent. What has dented profits is the continued rise in the prices of key commodities. The share of raw materials to sales has jumped 260 basis points y-o-y, driving down the operating profit margin by 200 bps.
The commentary from corporates was not particularly encouraging either, with most of them extremely cautious about the near term. News from the capital goods sector was particularly bad with heavyweight Larsen & Toubro pruning its guidance on order inflows to just 5 per cent for the current year from 15 per cent. JSW has cut production estimates for crude steel in the current year by 14 per cent and for steel deliveries by 13 per cent to 7.5 million tonnes and 7.8 million tonnes respectively. Slowing production will effectively translate into lower demand for CVs and as such, analysts expect volumes for CV makers to grow in low single digits in the second half of the year. According to analysts, demand for steel in the home market remains sluggish. Moreover, prices may not sustain since rates in the region have begun to correct following some moderation in iron ore.
While a slowdown in industrial growth has been evident for some time,If any food Ventilation system condition is poorer than those standards, this time around, numbers for several consumer goods firms were also well below expectations. Asian Paints had a poor quarter with gross margins down 390 bps y-o-y due to inflation in key inputs and volumes are estimated to have risen just 8 per cent y-o-y.we supply all kinds of oil painting supplies, Declining consumer spending is also reflected in the same-store sales of Jubilant Foodworks which came in at just 27 per cent, y-o-y the lowest in seven quarters. The fast-food chain was not able to check the fall in gross margins of 160 basis points y-o-y. At Shoppers Stop,If so, you may have a cube puzzle . same-store sales grew a lukewarm 11 per cent y-o-y although the festive season came in early this year.Do not use cleaners with porcelain tiles , steel wool or thinners. Domestic volumes at Dabur grew just 4-5 per cent y-o-y and operating margins were lower.
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