Core Business Profit Probably Fell in Q4
Bangalore: Most of the corporate hubs or the core businesses in country didn’t fair well in the quarterly results despite of the slow growth in net profits. About 230 companies could not make as much profit since December 2010. According to the net profits and the core income estimates its shows that the earnings of the companies have gone down but they just managed to get net profit growth because of other incomes like interests or dividends. As these companies net profits grew by 1.29 percent from last year and their operating profit dropped to 0.42 percent.
The sales of these companies grew up to 18.20 percent whereas in September 2010 the reported growth was 19.71 percent. “Growth is the slowest in many quarters, and one interesting thing is that if you remove the effect of other income, profits have actually fallen,” said Gaurav Dua, head of research at Mumbai-based brokerage Sharekhan (according to Livemint.com). He also added, “Other income like dividends, interest income, etc., has helped net profits.”
Some of the top companies that couldn’t make as much profit as last quarters are SBI, Coal India, Bharti Airtel, ONGC, HDFC, Infosys etc. SBI lost 8217 crore from its market capitalization, Coal India’s value dropped to 7200 crore, Bharti Airtel dropped to 6512 crore, NTPC shed 2515 crore, ONGC lost 1968 crore, HDFC shed 1805 crore and Infosys lost 543 crore.