1. Corporates continued to display their dismal performance for 2QFY14.
2. In last 10 financial year's second quarter, Sep-09 was the worst second quarter. Sep-13 quarter's performance is only better than that quarter.
3. Midcap & Smallcap continued to face brunt of slowdown in overall economy.
4. For the 3rd continuous quarter, at aggregate level, small cap posted whopping loss, -265% YoY profit growth.
5. Surprisingly, Largecap still managed to post double digit growth in the topline as well as bottomline.
(Refer Chart: Trend in Corporate India's Quarterly YoY Topline growth (%))
6. Silver lining in dark cloud: YoY Sales growth suggest that we may be in the turnaround phase and Sales should bounce from this level.
(Refer Profits Charts)
7. Profitability over past 5 years:
· Sep-13 quarter's aggregate profits are higher than Sep-08 quarter's profits, by just 8.5% (~1.7% CAGR).
· However, in Largecap profits are up by 43% (~8% CAGR, which is not bad, neither encouraging, especially if we consider inflation).
· Midcap profits are lower by 23%. (~ -5.1% CAGR),
· And Small Cap which was profitable to the extent of Rs 55 bn is now loss making of Rs 22 bn, which is real a big concern.
(Refer Margin Charts)
8. Squeezed Margins, may Impact economic activities and further fuel inflation.
· Over the past 5 years profit margins have squeezed to lowest level.
· Largecap now operating at 11%, against 15+% during pre-crisis period.
· Midcap now operating at 3.5%, against 9%+ during pre-crisis period.
· Smallcap are at NEGATIVE margin of 1%, against 6%+ during pre-crisis period.
· If there is no room further possibility of contraction, it will impact the level of activities in the economy and may also fuel inflation.
(Refer Table: Key Sectors which Impacted India Inc's Profits in Sep-13 quarter)
9. Sectors where there is 'Stress':
Mostly sectors which are building block of any economy.
Eng & Capital Goods, Power, Sugar, Cement, Infrastructure, Construction
10. Sectors which are negating the stress:
Mostly consumption based and sectors which benefits due to fall in Rupee's value.
http://quantspartner.com/ResultAnalysis2QFY14.aspx
Thanks & Regards,
Quants Partner
Quants.Partner@yahoo.com Quants.Partner@hotmail.com Quants.Partner@gmail.com
About Us:
www.QuantsPartner.com is a website which aims to help investor and analyst by providing Excel Financial models and a 2 minute scanner of a company in PDF .
The scanner is a 6 page "chartical report", where you will get a quick overview of the company as a whole. Once an analyst has fair idea about the company's financial health, and he wants to undertake a detailed analysis, and share it with other, he should look for "Financial Model" (an excel file) which has all the data in a standardized form for easy n smooth working. As you tinker with basic numbers, its impact on all other numbers & ratio can be seen..
You received this message because you are subscribed to the Google Groups "Forex - MetaTrader 4 Expert Advisor and Custom Indicator" group.
To unsubscribe from this group and stop receiving emails from it, send an email to expert-mt4+unsubscribe@googlegroups.com.
To post to this group, send email to expert-mt4@googlegroups.com.
Visit this group at http://groups.google.com/group/expert-mt4.
For more options, visit https://groups.google.com/groups/opt_out.
Leave a comment