18 September, 2020

Bull On The Moon

Profits are booming but the next quarter will determine the trends

R. Prasad
Bull On The Moon
outlookindia.com
-0001-11-30T00:00:00+05:53
When it comes to corporate results, the second quarter is normally the weakest one. But when Infosys came out with earnings and profits that beat the street's expectations, analysts realised something unusual was happening in Q2, 2006-07. Their smiles got wider over the next few weeks as other results poured in. Several companies' announced profits were up 50-100 per cent, compared to the same quarter in the previous fiscal. "It shows how analysts had underestimated the growth momentum," says a thrilled Amitabh Chakraborty, head of research, BRICS Securities.

The aggregated results for Outlook's universe of over 750 companies show that quarterly net sales were up over 50 per cent and net profits zoomed by over 300 per cent, in comparison to the same quarter in the previous fiscal. In case of the 30 Sensex stocks, the figures were over 30 per cent and 27.6 per cent, respectively. Says an ecstatic Motilal Oswal, MD, Motilal Oswal Securities, "Out of the 117 companies that we monitor, 54 posted results that were above our estimates, 40...
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