A Special Post – Company and its Results!

Today, am coming up with this special post, just to tell my friends on Facebook and the followers on Twitter and on my website the growing importance of corporate company results of listed companies. For keen watchers of Indian economy, they act as a leading indicator in predicting the growth. In this post I have two points to discuss

  1. How much has one company grown with respect to profits?
  2. How are the overall Q3 results till now?

Every Business applies itself only to make profits and that’s their motive. But in doing so the economy also grows and that is the direct goal of Govt. When the Govt goes onto make liberal policies, they expect the Companies to generate more employment. Govt and Business look to be two different things in a country, but in reality they are inseparable. Yes, every company isn’t always true with respect to using the people’s money neither is the Govt. Governments fails and so does Businesses.

The main course of this article is to bring out the review for Quarter 3 results till now and how good or bad the companies have been reporting.  But before that I will talk about one company that has been doing wonders in the Business. Its undoubtedly the Big ‘D’’ Dhirubhai Ambani’s Reliance Industries.

Reliance Industries 1976-77 2016-17 % Gain
PAT 0.5746 Cr 31,425 Cr 54,68,921.92

In 1976-77 financial year Reliance made profits of 57.46 lakhs or 0.57 crore and in the last fiscal year they recorded profits of 31,425 crore which is whopping 54.6 lakh % increase in 40 years!

Not sure if this can be achieved by any other investment source. That’s the power of Business. Keeping profits aside and talk about the growth that Reliance has brought to the country then it is impeccable. From textile to telecom and refineries to retail. Everywhere its Reliance and with it, India is also growing. Thanks to Dhirubhai Ambani and his Vision.

 

Quarter 3 results FY 17-18 – PAT and Revenue in crores

Sl. No Company PAT Revenue % PAT % Revenue Result
1 HCL Tech 2207 12433 9.47 7.93 Average
2 HDFC bank 4642.6 14183.5 20 23.9 Good
3 ICICI Prudential life 452 6795.13 0.5 19.26 Bad
4 IDFC bank 146 495 -24 -5 Bad
5 ITC 3090.2 10579.11 16.75 -35.86 Bad
6 Infosys 5129 17794 37.6 1.3 Good
7 Jubilant Foodworks 66.02 798.5 230 20.55 Good
8 Kotak Bank 1053.2 2393.72 19.7 16.8 Good
9 NIIT Tech 75.6 756.5 21 9 Good
10 Reliance Industries 9423 102500 23 7.8 Good
11 Wipro 1930 13669 12 1.83 Average
12 Adani Ports 1001 2689 19.5 22 Good
13 Bharti Airtel 306 20319 -39 -13 Average
14 Ultratech cement 421.5 7590 2.25 19.1 Bad
15 Yes bank 1076.9 1880.8 22 26.82 Good
16 HUL 1326 8590 28 14 Good
17 Bharti Infratel 585 3655 -6 -7 Bad
18 SREI Infra 105 1405 56 24 Good
19 Tata Sponge 36 226.12 228 36 Good
20 Zee Entertainment 321.7 1838.07 28 12 Good

 

So far, we have seen more than 50 companies declaring their results and off them I have picked up 20 companies. The result if we see objectively there have been 12 companies with good results, 3 with neutral or average results and 5 of them coming out with bad results.

The results from 12 companies though look good they aren’t enough to call this as good earnings season for Quarter 3. There are both equal positives and negatives to be picked up.

Positives

  • Hindustan Unilever results are the biggest positive till now as HUL clocked 28% increase in the profit and 14% increase in the revenues. This big up trend is clearly signifying the recovery in fast moving goods segment triggering growth.
  • Infosys which has been the company in the news for wrong reasons has caught the good eye and are doing very well both in primary and secondary market. Infosys beat street estimates this time and came out the profits increase at 37.6%.
  • The Pizza Maker Jubilant Foodworks which controls Dominos Pizzas has come with stellar results with 3-fold increase in profits. Thanks to the Pizza Eaters!
  • Banking is growing at faster pace as HDFC, Kotak, YES have hit the bulls eye yet again.

Negatives

  • Bharti Airtel is the company which has been taking so much pressure from the Big Boss Reliance as he entered with Jio. Jio has damaged Airtel bigtime and that’s the reason why Airtel had slowed down and couldn’t make higher profits this time. For future though, Airtel is still the front runner. Bharti Infratel also came in line with Airtel.
  • ICICI Prudential – the insurance wing which makes more than 19% increase in revenues but couldn’t make any profits and that’s bad sign.
  • Ultra tech and IDFC Bank are the other two bad results but not much is to be worried about the two.
  • Finally, the Software sector which is coming back into form is still seeing hiccups from big one TCS and Wipro.

Overall, it looks to be average results season till now and rate the performance companies at 5.5/10.

The rating is given with conservative approach. Hopefully we will have better performance coming ahead and maybe we will hit the ‘A’ grade rating of 7.

Till then keep an eye on remaining companies, because big one’s are still to come‼