Early birds herald result season with good tidings
That apart, the trends have been encouraging. Almost all private sector banks to have announced results have done exceeding well in what is seen to be a highly competitive environment. HDFC Bank reported its customary 30% y-o-y rise in profits, its asset quality as impeccable as ever, while Axis Bank did well to post a 22% y-o-y increase in the bottom line.
For a sample of 77 companies (excluding banks and financials), skewed heavily in favour of software giants, revenues grew nearly 19%, y-o-y, comparable with the previous three quarters. With companies keeping costs in check, operating profit margins expanded nearly 200 basis points, a sharp improvement over the previous three quarters when they had contracted by anywhere between 150 and 400 basis points. Consequently, operating profits saw a big jump of 38% y-o-y, driving up the bottom line for the sample by an impressive 51% y-o-y. That compares with a 17% increase in the three months to September and a drop in the