Showing posts with label BSE. Show all posts
Showing posts with label BSE. Show all posts

Saturday, April 27, 2013

B&E Infographics

Annual results: India inc.

India Inc. report card FY 2012

Events in the global arena kept india inc. in distress throughout the year. Gloomy macroeconomic conditions on the domestic front further added to their woes. though corporate India managed to save their topline during the past financial year, increased input costs played spoilsport for them as the bottomline shrank by over 8%, as suggested by the aggregate financials of 275 BSE 500 companies, which announced results by May 18, 2012.

Tough year on all fronts

Aggregate yoy revenue growth for BSE 500 companies (275 companies that announced their results by May 18) in FY 2012 remained at a healthy 23.9% with a marginal improvement over last year’s 23.03%. However, increased input costs have hit margins. Aggregate net profit after tax shrank by 8.79% for the above-mentioned period as compared to a superb growth of 24.39% in the previous year. With global markets still under pressure and the European epidemic getting worse by the day, the current fiscal, too, looks quite challenging and the key issue for India Inc. would be to keep their costs under check to safeguard their margins. Nevertheless, corporate India may soon get a breather from raw material costs as analysts expect commodity prices to settle down in the near future.

Banks post strong growth

The banking sector managed to achieve a 34.4% growth in revenues yoy, the highest among the sectors picked. Revenues for BSE IT companies increased by 25.58% yoy as compared to 19.73% recorded in the previous fiscal. However, a look at public sector companies shows a starkly contrasting picture. The aggregate revenues of all PSUs, which are part of the BSE PSU index, grew by 22.92% yoy in FY 2012 as compared to a growth of 25.87% in FY 2010-11. Both Banking and IT sectors surpassed the aggregate of Sensex constituents, which posted a revenue growth of 23.8% for the last fiscal. Going forward, considering the demand situation in India, analysts expect the situation with revenues to remain optimistic, but margins may continue to be stressed.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles
 
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Friday, August 31, 2012

Silver cloud, dark lining!

Slowdown is over and the outlook is bright. Still, India Inc.’s profitability has taken a hit in the very first quarter of the fiscal when the country is expected to grow at 9.4%. Avneesh Singh analyses the reasons for the dismal show

Rs 1894.78 billion! This was the amount that corporate India raised in the last fiscal through private placement of corporate bonds. Interestingly, it’s the highest amount that India Inc. has mobilised in this fashion in any single year during the past decade; a clear indication of how positive the global investors are in their outlook towards corporate India. But are Indian companies measuring up to expectations? Or are they are just playing on their past reputation?

Well, if the first quarter performance of India Inc. is anything to go by, the answer is much in the negative. Though gradually recovering demand, both in domestic and global markets, has come to its rescue, India Inc. is struggling to deal with rising input costs and thus facing the problem of declining bottom-lines. There is no doubt that a few companies have showcased stupendous results, but the poor performers outnumber them quite convincingly when one considers the overall performance. For example, when B&E looked at the cumulative result of 475 of the BSE 500 companies (whose first quarter ended on June 30,2010), the result was a surprise. Though cumulative revenue of these companies for the quarter surged by18% on a year-on-year basis to `7.4 trillion from `6.2 trillion in the corresponding quarter of the previous financial year, their net profit after tax has declined by 11.85% y-o-y to `624.43 billion from `708.35 billion that it managed to mop up in the first quarter of FY’10, which was even more trouble ridden.

Moreover, the situation looks worse, when we make a quarter-on-quarter comparison. In that case, the revenue advantage seen earlier is also missing. As per the cumulative data for the above mentioned companies, total revenue has gone down by 7%, while profit has taken a hit of 22%. But then, as industry experts put it, the cumulative results should not be much of a surprise as industry heavyweights like Maruti Suzuki, Tata Steel, Reliance Infra, Jaiprakash Associates et al, which form a large chunk of India Inc.’s total revenue, have performed poorly during the quarter. As confirmed by Navin Agarwal, CEO – Institutional Equities, Motilal Oswal Securities Ltd., “Only 6 companies (out of the 30 BSE Sensex constituents) have reported higher than estimated profit after tax.”
 


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Wednesday, July 06, 2011

Sensex down 19 points in opening trade on weak global cues

The BSE benchmark Sensex fell marginally by 19 points in opening trade on Wednesday, extending Tuesday’s losses on continued selling by foreign funds and retail investors amid mixed cues from global markets.

The 30-share barometer, which lost 69.92 points in Tuesday’s trade, moved down further by 19 points, or 0.10 per cent, to 18,725.56 in opening trade on Wednesday.

Shares of state-run oil firms, banking, power and healthcare companies remained under pressure.
Similarly, the wide-based National Stock Exchange Nifty index shed 11.75 points, or 0.20 per cent, to 5,262.00.

Market experts said the trading sentiment remained somewhat bearish amid a mixed trend on other Asian bourses, following overnight losses in the U.S. market.
In particular, stocks of state-run oil companies such as Hindustan Petroleum Corp, Bharat Petroleum and Indian Oil faced selling pressure as rising oil prices in global markets put pressure on their earnings.

In the Asian region, Hong Kong’s Hang Seng index was trading 0.32 per cent lower, while Japan’s Nikkei was up marginally by 0.31 per cent cent on Wednesday morning. In the U.S., the Dow Jones Industrial Average ended 0.10 per cent lower in Tuesday’s trade.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

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