“The adjusted earnings of the companies in the Sensex are estimated to decline by 1.9 per cent during the second quarter of FY 2010,” domestic brokerage firm Sharekhan said.
However, if the oil firms are excluded the adjusted earnings of the Sensex companies are estimated to fall by 2.8 per cent year-on-year compared with the 1.1 per cent decline seen in first quarter of fiscal year 2009.
High base
Marketmen expect the earnings to be flat mainly on the back of high base (set in the last fiscal) and relatively better performance in some sectors, including automobile and cement firms.
“We expect second quarter of fiscal year 2010 to be a flat quarter on a year on year basis largely on account of the high base. We estimate net sales of Sensex companies to rise by about 6 per cent year on year and net profit to register de-growth of about 1 per cent,” Angel Broking said in its earnings preview of the September quarter. Brokerages feel the stimulus packages by the government is reaping result for corporate India, with demand improving.
“The playing out of strong domestic consumption theme ensured that Indian economy changes into higher gears faster than its peer economies, which also helped or will help corporate India recover from the troughs. This trend will get all the more stronger in coming quarters,” it added.
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