The ‘result’ant impact

When IIPM comes to education, never compromise

Results are as crucial to a company as they are for a student; it gives a clear picture of the past performance, with a disclosure that it may or may not be sustained in the future. Stephen Schwarzman, CEO and Co-founder of private equity firm – Blackstone, terms earnings as ‘tyranny of quarterly earnings’, Ram S. Ramasundar former CFO of Ranbaxy hails it as Life Q-S-Q-T (Quarter se Quarter tak), while Partha Sarathi Basu, CFO, SpiceJet, was caught tampering his report card, when SpiceJet actually reported a loss, after getting it audited (earlier the company had reported a profit for the quarter ending on June). But the fact remains the same, we may have won the battle, but the war waged by rupee appreciation on the export oriented units still needs to be won; and the results of export dependant sectors says it all.

While, industry’s big Daddies – Infosys, TCS and Wipro have reported an increase of 19.8% (net profit of Rs.10.74 billion), 22.8% (net profit of Rs.12.53 billion) and 14.29% (net profit of Rs.7.60 billion), respectively, for the quarter ending September 2007; mid-sized firms including Mastek, iGate Global and CMC Ltd. seem to have faired well too. However, unlike the corresponding period of the previous year, these IT companies were not able to put up a splendid show with their bottom lines, though top lines remained intact.

Apart from interest rate sensitive and export oriented sectors, the rest of the pack including capital goods, telecom, power, oil & gas are expected to deliver a power punch. “We would not like to comment on stocks. But we are greatly excited by some of the sectors like capital goods, energy, banking and financials, where we are currently overweight for our India dedicated funds,” says Arindam Ghosh, CEO of Mirae Asset Global investment.

Axis Bank (formerly UTI Bank) faired better than state owned IDBI and Allahabad Bank on the back of strong loan growth and fee income. Reliance Energy’s net profit jumped 34% to Rs.250 crores for the quarter ended September from Rs.186.3 crores in the same quarter a year ago. Reliance Industries too reported a 28% increase in net profit at Rs.38.37 billion, way above street expectations. The valuations of Indian stocks markets continue to be well justified by the corporate performance QSQT and the report card looks promising in times to come.

Edit bureau: Asif Ahmed

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!