DNA Money Edit: Flying start to India's earning season

Even as incessant rains brought the financial capital to a crawl, earnings season has got off to a flying start on Tuesday. Two Nifty-50 companies that went off the block first -- Tata Consultancy Services (TCS) and IndusInd Bank, have brought cheers to the market.

The weakening rupee and a dismal year-ago quarter when dealers pared stock ahead of the Goods and Services Tax (GST) implementation will decisively impact the quarterly financial results of India Inc. Most brokerages have predicted a 20%-plus growth in earnings per share of the Nifty-50 companies in the first quarter, making it the third consecutive quarter of double-digit growth. Analysts are upbeat on automobiles but expect pharmaceutical companies to continue to face the US headwinds.

TCS, India's largest IT firm by sales, reported a 23.46% year-on-year growth in consolidated profit for June quarter at Rs 7,340 crore. During the quarter, the company added two new clients in the $100 million categories and 13 in $5 million slab.

IndusInd's 23.81% jump in first-quarter net profit at Rs 1,035.72 crore stems from higher net interest income as well as other income. Its loan book expanded 29% with the corporate loan book growing 30% and retail book 28%, the main driver being vehicle finance. It believes the vehicle industry will be in a bull run for another two years.