Indian companies have posted a mixed bag of financial results for the quarter to Sept. 30, a Reuters study of 46 firms which released earnings figures in the week to Oct. 23 showed. The study showed the net profit of the 46 firms grew by an average of 12 percent from a year ago, and net sales rose an average of 22 percent.
"The second quarter for several firms is usually slack because of the monsoons, but most have shown encouraging sales growth," said Imran Contracter, director of Milan Mahendra Securities.
Monsoon rains that typically run from June to September each year are crucial for agriculture, which contributes about a quarter of India's gross domestic product.
Petrochemicals firm Reliance Industries Ltd beat analysts' expectations by posting 28 percent growth in net profit of 6.12 billion rupees, up from 4.8 billion.
Diversified company Grasim Industries Ltd registered a huge 83 percent surge in net profit, boosted by its cement business. Cement sales rose 66 percent, fuelled by rural demand, restructuring and centralized marketing efforts.
Tata Iron and Steel Co Ltd, India's largest private sector steel maker, reported a 5.5 percent drop in net profit, though sales rose 17 percent. Analysts expect the firm to perform much better in subsequent quarters on an industry turnaround with signs of firming prices.
RSS