IT companies expecting to recover from slowdown
As the Maruti, Bharti, HUL and Idea all stated beating the Street, the mood in corporate India even if not actually upbeat, is surely better than it was a few months ago. There is, however, some of the despondency that goes with the realisation that the core of the economy remains in deep trouble; from Larsen & Toubro to NTPC and Ultratech to Sesa Sterlite, large chunks of industry continues to find the going tough.
It is sure that the headline numbers for Q1FY15 mask much of the hidden pain for a sample of around 749 companies the revenues rose 14.5 percent, driving up operating margins by about 80 basis points and should be read together with the by and large cautious management commentary. Net profits may have raised a good 24 percent but a good part of this comes from the IT and telecom firms.
The results of the engineering heavyweight Larsen & Toubro reflect the weakness in the home market with local orders were anaemic but were offset by a chunk of overseas orders comprising 44 percent of the total. However even this is the increase in total orders at around 11 percent was below the guidance of around 15 percent.
Source: The Financial Express
Bharti, HUL, IT companies, Larsen & Toubro (L&T), Major IT companies, Maruti, NTPC, UltraTech
