5 Sep 2017

Result season, healthy corporates


The Q1 results season drew to a close with results widely affected by preparations for the introduction of nationwide GST on July 1st, including production cuts and widespread inventory selloffs. The Healthcare sector continued to disappoint with price pressures intensifying for generics in the US and domestic sales affected by evolving pricing policy aimed at cutting the cost of medications.  Lupin reported sales down by 11.76% and profits down by 5.9%. Torrent Pharma reported sales down by 10.9% and profits by 35.6%. Heidelberg Cement faced production pressures from restricted supply of sand and aggregates in Uttar Pradesh with sales down by 6.6% and profits down by 3.9%. Indian Hotels reported revenues ahead by just over 1% while profits fell by 19%.  Boosted by a strengthening order book at improving margins, Kalpataru Power reported a 1.4% increase in sales and 9% in profits. VIP Industries reported an increase of 9% in sales and 30% in profits. Finally, Indraprashtha Gas reported a 16% increase in sales and 9% in profits.

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