- Cement: ACC, Ambuja, Ultratech and Grasim did very well though the first two are coming from a lousy base last year.
- Sun Pharma, Hindalco and Gail saw profits up 3x or more after a low base last year (when they lost a lot)
- IT was no great shakes. Only Tech Mahindra had 28% profit growth, while TCs and Infy had sub-15% growth in Profits. And then,
- Telecom did very badly. Idea and Airtel both saw their profits fall substantially, more than 30%.
- Of the banks, HDFC Bank did its trademark 20% on profit growth, and Yes bank and Indusind Bank did even better. But Axis and ICICI saw profits shrink, as did SBI.
Overall, if we add up all the revenues, we see that these companies did about 5.6% more than last year. But profits are lower by 9%.
We have seen 8.7% Growth in March 2016, 15% Decline in Profits in Dec 2015 and so on. This doesn’t tell you how good the markets are – apparently they are expecting 25% growth in profits all over the Nifty universe!
This might just be good news. Because all bad news is good news. There will be a rate cut!