Anand Rathi - Q2FY12 Earnings Snapshot - What's in the making..??

Q2FY12

- It was expected that Q2 FY12 results would have no surprises and be dull. The markets had already priced this in.
- Without exception, the results have been on expected lines.
- Top-line y-o-y growth came in at 19.28%, with a 34.58% drop in the bottom line. Interest cost increased almost 44.61%. Subdued ‘other income' was seen in select companies, mainly due to forex losses.
- Slower economic growth, higher raw material costs, higher interest costs and forex losses, mainly due to the rupee depreciation, contributed to the poor results of India Inc.
- This resulted in revised estimates and recommendations - a downward trend.

What's in the making…??

- Nervousness and fear of slowdown, globally and domestically.
- Inflation still on the higher side, slower pace of reforms and policies, dull investment cycle, higher interest costs are factors holding things back.
- This will continue for some time.
- This has led to downgrades and lower estimates for FY12 and FY13.
- For real growth, government has to take pro-active and corrective measures and quicken its pace of reforms.
- Global situation also needs to be supportive.

Source : Equity Bulls

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