Gain for exporters, pain for the rest

The first batch of results for the June quarter has been a mixed bag. While profitability of export-intensive sectors, such as information technology (IT), surprised on the upside, a demand slowdown seemed to be spreading to the financial sector, especially private banks.

A better-than-expected show by IT biggies like Tata Consultancy Services and Infosys lifted the core operating margin (excluding other income) of non-financial companies by 80 basis points on a year-on-year basis, despite stagnant revenues and double-digit increase in wage cost. Currency depreciation helped IT companies and manufacturing exporters like Bajaj Auto to book higher rupee revenues and cushioned the blow from rising operating cost in India.

A total of 123 companies have declared their first-quarter results so far. Of those, 99 are non-financial companies, while the rest are banks, non-banking financial companies (NBFCs) and brokerages (clubbed as financials).



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