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Over 75% of corporate India (by market cap) has declared Q3 results and the verdict is - We are on a roll!
Highlights of last 6 month performance (July-Dec) for 809 results (ex-financials) declared till Friday, Feb 5th.
1/n
Highlights of last 6 month performance (July-Dec) for 809 results (ex-financials) declared till Friday, Feb 5th.
1/n
2/n
While revenue growth is close to pre-Covid levels (down 5%), there is a strong profitability growth lead by both gross margin expansion and operating leverage. No wonder everyone is talking EPS growth!
How do we compare with US on this front? Here.
FIIs: Note
While revenue growth is close to pre-Covid levels (down 5%), there is a strong profitability growth lead by both gross margin expansion and operating leverage. No wonder everyone is talking EPS growth!
How do we compare with US on this front? Here.
FIIs: Note
3/n
52.5% PAT growth overall and 43.9% ex financials!
How does this look across industries?
Ans: Broad based
52.5% PAT growth overall and 43.9% ex financials!
How does this look across industries?
Ans: Broad based
4/n
Is this profitability growth due to one time cost savings?
Numbers reflect that is not the case. Most of the margin expansion is flowing from COGS (lower raw material/ cost of service) as against other opex!
Industry wise trend is healthy
Is this profitability growth due to one time cost savings?
Numbers reflect that is not the case. Most of the margin expansion is flowing from COGS (lower raw material/ cost of service) as against other opex!
Industry wise trend is healthy
5/n
Which names are driving the profitability growth?
Top contributors
Which names are driving the profitability growth?
Top contributors
6/n
Companies directly impacted by Covid are gradually making a comeback but not yet back to normalized levels (highlighted in yellow).
Companies directly impacted by Covid are gradually making a comeback but not yet back to normalized levels (highlighted in yellow).
7/n
This brings is the moot question - Has the declining corp profit to GDP trend bottomed out?
Enough indicators to say yes. https://twitter.com/abhymurarka/status/1157973908210896896?s=20
This brings is the moot question - Has the declining corp profit to GDP trend bottomed out?
Enough indicators to say yes. https://twitter.com/abhymurarka/status/1157973908210896896?s=20
This, by no means, is a recommendation on valuation levels. But it re-enforces the view that Mr. Market has the best pulse of the economy and doesn't wait for reported numbers.
