announced their results and their year-on-year growth in income and profits is lower than what it registered in September 2012 over the previous year.
While HDFC Bank’s income rose 29.1 per cent in September 2012 over September 2011, the growth in September 2013 slowed to 16.4 per cent.
The bank also saw its profit growth at below 30 per cent for the first time in 10 years.
Even for Axis bank the income growth softened to 13.8 per cent this quarter from 26.7 per cent in September 2012 over September 2011 and the profit growth stood at 21.3 per cent as against a growth of 22.1 per cent in September 2012..
The 28 companies also saw a rise of 13.1 per cent in their interest expenditure for the quarter as it rose from Rs 12,812 crore in September 2012 to Rs 14,487 crore in the last quarter.
Why the trend may not sustain
While the numbers may remain better than what they were in previous quarters, it may not remain as good as they seem now. All major IT companies have announced their results with the exception of Wipro, Mahindra Satyam and a few others. So benefit from the sector may be limited now for the overall market. Even though major pharma companies are yet to come out with their results and they are expected to post strong numbers benefitting from a depreciated rupee, other sectors may play a spoiler.
Market experts point out that FMCG companies may not come out with good numbers as their volume growth is expected to remain soft and while both public and private sector banks are likely to show weak numbers they may also show pressure on asset quality. Even the infrastructure, construction and oil & gas companies may not show strong growth.
While the two leading private sector banks have not posted very good result, experts point that the public sector banks are also expected to come out with not very strong numbers.
“There will be pressure on the asset quality and strong treasury gains that the banks had registered in the previous quarter may not be there for the banks this time,” said a fund manager who did not wish to be named.
Larsen & Toubro announced a 10 per cent rise in its net sales at Rs 14,509 crore and 7 per cent rise in its net profit at Rs 977 crore for the quarter ended September