SENSEX posted 31% fall in earnings in the quarter ending March-15

Corporations posted heavy falls in the earning in the quarter ending Mar-15. Bad results were being estimated but no one had expected such huge falls in profits. SENSEX earnings (of 25 companies who has posted results so far) in Q4 FY15 have come down by whopping 31% as compared to the year before in Q4 FY14.

Company Name

Q4 FY15

Q4 FY14

Percentage Change

Vedanta

-19,228.12

1,621.55

-1285.79

Tata Steel

-5,674.29

1,035.87

-647.78

Tata Motors

1,716.50

3,918.29

-56.19

BHEL

888.35

1,844.59

-51.84

Bajaj Auto

69.14

137.71

-49.79

GAIL

510.75

972.03

-47.46

Hindalco

159.53

248.15

-35.71

TCS

3,712.67

5,357.61

-30.70

ONGC

3,935.07

4,889.00

-19.51

Hero MotoCorp

476.53

554.43

-14.05

Coal India

4,238.55

4,434.19

-4.41

Wipro

2,272.00

2,226.50

2.04

Infosys

3,097.00

2,992.00

3.51

ITC Ltd.

2,361.18

2,278.01

3.65

Dr. Reddys Lab

518.84

481.6

7.73

Reliance

6,381.00

5,881.00

8.50

HDFC Ltd.

2,646.35

2,414.70

9.59

ICICI Bank

3,084.92

2,724.26

13.24

Hindustan Unilever

1,018.08

872.13

16.73

Axis Bank

2,180.59

1,842.32

18.36

SBI

4,694.11

3,963.82

18.42

HDFC Bank

2,806.91

2,326.52

20.65

Bharti Airtel

1,255.30

961.6

30.54

Maruti

1,284.24

800.05

60.52

Tata Power

159.14

-145.33

209.50

SENSEX (25 Companies)

66,628.34

96,331.60

-0.31

Vedanta and Tata Steel were the worst performers. Vedanta posted the heaviest loss of Rs. 19,228 cr. in Q4 FY15 against the profit of 1,621 cr. in Q4 FY14. Tata Motors, TCS, GAIL, BHEL, Bajaj Auto, Hindalco & ONGC were other companies posting heavy falls in the earnings.

Sector wise only banking sector cheered the investors as Axis Bank, ICICI Bank & HDFC Bank posted good returns. Also some individual companies like Hindustan Unilever, Bharti Airtel & Maruti Ltd. were the few companies who were able to cheer the investors by posting good returns against the heavy headwinds.

This is the worst performance since the 2008 collapse when companies posted huge losses. It is the biggest reason of fall in the markets. Earnings may not improve very much in one or two quarters further. It has already led to pressure in the markets and it may continue for some time.

SENSEX, which had shown recent uptrend in past one and half year mainly due to the euphoria of newly elected Govt., is now in the consolidation mode due to bad earnings and other reasons. Now the expectations of the corporate are that Govt. should take fast policy action and clear the long waiting Bills like Land Acquisition Bill & GST Bill.

As share prices are said to be ‘the slave of the earnings’ so it becomes very important to create a positive environment for the growth of corporations and higher earnings. Otherwise it could become difficult to maintain the uptrend.

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