Post GST, Q2FY18 Earnings Show Green Shoots
Dalal Street Investment Journal|December 24, 2017

The Q2FY18 results were better than the Q1FY18 results. Neerja Agarwal and Tanay Loya analyse how different sectors fared in their quarterly performance

Post GST, Q2FY18 Earnings Show Green Shoots

The quarterly results for Q2FY18 were overall better than Q1FY18 as the companies experienced restocking and overcame transition-related glitches. We see BSE-100, BSE-200 and BSE-500 saw improvement in the operating profit and PAT increased more than proportionately. The aggregate revenue for the above set of companies increased by mid-single digit, while more than proportionate increase was seen in the PAT, which jumped by ~+60%.

However, it took longer for small-cap companies to adjust to the new regulations of the GST. The BSE Small-cap companies’ aggregate revenue trickled down by 1.0% and operating profit growth recovered by ~5%. However, the net profit, though declined as compared to the last year quarter, actually turned positive when compared on a QoQ basis.

This story is from the December 24, 2017 edition of Dalal Street Investment Journal.

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This story is from the December 24, 2017 edition of Dalal Street Investment Journal.

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