Reply #31: things that happen there affect us here --

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http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=535796

Earnings Recap: See how India Inc fared in last quarter

India Inc will kick start the fourth quarter (Q4) earnings season with IT bellwether Infosys announcing its numbers on April 15. Experts believe the Q4 performance of major companies is likely to provide the market with trigger for its next significant move on either side.

Moneycontrol recaps India Inc’s third quarter performance in an attempt to gauge the future. The Q3 earnings season turned out to be a mixed bag with its share of highs and lows.

Moneycontrol analysed the (Q3) quarterly results of over 3700 companies. As per data, profit after tax (PAT) of these companies slumped 15%, quarter-on-quarter (QoQ). The primary reason of the PAT slowing down was elevated interest costs and expenses of 6.91% and 8.6% respectively. Also, drop in other income at 9.27% added to the woes of India Inc. Meanwhile, sales registered modest growth of 5.67% compared to 8.18% last quarter.

Operating margins too declined at 22.29% vis-à-vis the September ‘10 quarter at 24.38%. The most worrisome factor for the market was slide in net profit margins by 215 basis points (bps) at 8.8% vis-à-vis 10.96% in September ’10. So, that’s a key concern.