Profit Galore! 40 BSE500 cos see PAT doubling YoY in Q1

economictimes.indiatimes.com:

As many as 40 companies, part of the BSE 500, reported more than 100% year-on-year (YoY) growth in profit in the quarter ended June, data analysed by ETMarkets showed. Profitability increased both on a YoY and sequential basis across sectors, led by stable-to-higher product prices and stable-to-lower raw material prices. Among the 40 companies were four public sector banks, including the country’s largest lender State Bank of India.SBI reported a 149% YoY growth in net profit to Rs 18,736 crore, while Punjab National Bank’s profit surged by nearly three times to Rs 1,211 crore.

Besides SBI, three other index majors – JSW Steel, Oil and Natural Gas Corporation, and Maruti Suzuki India – saw their profits more than doubling on year. Not only a better operational performance, but even higher-than-assumed other income contributed to the sharp growth in profits of several companies, noted Kotak Institutional Equities. One of the prominent sectors to report strong growth in profits in the previous quarter was automobiles, ancillary and tyre makers.

Six of the 40 companies are part of the automobile, ancillary and related industries. Tyre maker CEAT saw its profit soar to Rs 146.4 crore in the quarter from Rs 2.6 crore. Samvardhana Motherson International’s profit rose to Rs 625 crore in the June quarter, from Rs 180 crore a year ago.

India’s largest carmaker Maruti Suzuki India reported a whopping 2.4-fold YoY rise in net profit for the quarter to Rs 2,463 crore. The automaker saw its other income soar to Rs 978 crore in the quarter from Rs 81 crore a year ago. Meanwhile, ONGC saw its consolidated profit double on year to Rs 17,383 crore.