Investors expecting a fast recovery in economy
Investors are betting big on a quick recovery for the economy — the Sensex surged 310.63 points on Tuesday to close near its lifetime highs — but corporate profits this earnings season have, at best, been a mixed bag. Disappointments so have outnumbered the surprises by a wide margin in the three months to June with the star performers being Tata Consultancy Services (TCS) and Idea
The investors are hoping for the quick recovery of economy. The Sensex had gone up to 310.63 points on Tuesday which is too close to its lifetime high. However the corporate profits in this earning season have been in a mixed situation. Disappointments have hence outnumbered the surprises by a huge margin in the three months till June with star performers like Tata Consultancy Services (TCS) and Idea Cellular. The profit margin of these companies has jumped to 57 percent year on year.
A number of 114 companies apart from banks and financials net profit might have gone up by 15.6 percent but this has come on the back of a huge jump in the other incomes. It is true that excluding TCS and Infosys the growth in aggregate net profit is just 4.8 percent year on year.
The revenues for the sample have just incremented for 11.3 percent though the raw material bill as a share sales was very small the operating margins have stayed at flat 15 percent. The banks have reported muted increase in loans. Adjusting for FCNR deposits, the loan growth at HDFC Bank has just seen 16 percent year on year.
Source: The Financial Express
HDFC bank, Idea Cellular, Indian Economy Best Time to Invest, Infosys, Tata Consultancy Services, TCS
