Q1FY22 earnings: BSE500 companies show best top and bottomline growth in last 12 quarters
Low base effect due to a national lockdown in 2020 and cost-efficient measures taken by the companies have played a big role. The restrictions this year have not been as harsh, so the hit on operations and Q1FY22 earnings has been softer
The June quarter earnings from India Inc have started pouring in. The results (announced so far for the companies in BSE 500 index) have shown the best topline and bottom line year-on-year growth in the last 12 quarters. While the growth numbers projected this quarter are high due to low base effect, the actual sales for these companies are around pre-Covid average. The factors at play being low base effect due to the national lockdown in 2020 and cost-efficient measures taken by the companies. The restrictions announced this year were not as harsh as last year so the hit on operations and Q1FY22 earnings was less. From the BSE 500 list, 118 companies (excluding banking and financial) have announced their June quarter numbers so far. (Data Source: ACE Equity).
2/7
Nifty 50 companies are also witnessing a smart surge in their revenue growth in the first quarter of FY22, but the profit growth seems a bit lower compared to the March quarter growth.
3/7
Now let's look at some of the sectors individually. IT Companies, which were the least impacted due to the coronavirus pandemic, are showing a smart bounce back in their topline and bottom-line growth. The firms in the BSE IT index saw a cumulative increase in sales and profit numbers.
4/7
FMCG companies' sales and profit numbers are back to pre-Covid average.
According to results announced so far by auto companies, sales growth shows a surge due to low base, but even the actual sales numbers, are inching towards pre-Covid average.
6/7
For metal companies, sales growth was at a peak in the last 12 quarters for the companies in the BSE metal index (do we need this, we are already saying BSE). In fact, Q1FY22 sales number is the highest in the last 12 quarters for the companies that have announced their results so far.
7/7
For the companies that are a part of BSE Realty index, the June quarter sales growth has doubled year-on-year, but the actual sales number is still way below the pre-Covid average.
