Interesting last few weeks for us at Capital Mind. With companies announcing their Q2 earnings since early October, we have been tweeting some important and fascinating results via our official Twitter handle (@Capitalmind_in). And this is set to continue! Plenty more announcements are to follow over the next few weeks, and we shall look at them closely and will definitely have some intriguing trends to share with you all.
One such trend we found interesting this week, is that of the Nifty stocks. So far, 37 of the 50 Nifty companies have released their Q2 results. A few surprises did spring up. We performed an analysis of each quarter’s results, and compared it to the corresponding quarter’s results in the previous year.
We’ll write in some more detail about Banks in context of the Bank Nifty in a separate post.
Let’s look at the growth of Revenues and Net Profits of all the Nifty stocks put together, on a year-on-year basis for each quarter.
As we can see for June 2014 (Q1), on a year-on-year basis, the 50 Nifty companies saw a 18.15% increase in their Q1 revenues, while Net Profits grew by 18.39%.
Contrastingly, for September 2014, the total revenues grew by only 3.70% on a yearly basis. Net Profits grew by 5.17%; a measly growth rate compared to the 18.39% that was seen in Q1.
Even though the remaining 13 companies are yet to announce their results, we can safely assume that the growth rates are not going to be anywhere close to the Q1 rates. An underwhelming performance by the Nifty companies that showed so much promise in Q1.
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