DNA Money Edit: Flying start to India's earning season
Analysts are upbeat on automobiles but expect pharmaceutical companies to continue to face the US headwinds
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.