Thursday, September 22, 2011

Trading Strategy-Result Analysis: Quarter 1 FY 2011-12

Result Analysis: Quarter 1 FY 2011-12

The First Quarter of Financial Year 2011-12 ended in June, and with nearly all results in, let us see how we fared. I gathered the results of 950 companies, and as an important caveat, used consolidated results where available. *

*  Most companies reveal only standalone results each quarter. Increasingly, companies are moving into a holding structure and own a majority stake in subsidiaries. This calls for consolidated financial results, which many companies now release. For Yahoo, we compiled a list of all results using consolidated data where available (and where Q1 of last year was also available in a consolidated format). Consolidated results number nearly 25% of all companies, and the results are substantially different from using only standalone data.
Overall Results

The 950 companies surveyed have more than 85% of the market cap of the index, with a notable exception of COAL INDIA where we do not have comparable Q1 figures for the previous year and thus has not been included.

With over 28% revenue growth the story has been quite strong on the topline, but bottomlines have grown only 12.5%. Growing inflation and interest costs have started to hurt, but our growth has been remarkably strong in the quarter.

We are seriously top heavy: the top 10 stocks are more than 1/3rd of the total revenue, and the top 100, more than 70%. Organized by profit, the top 100 stocks make more than 85% of the total profits seen.

Did you know, the company with the highest revenue, Indian Oil Corporation at 92,523 cr. in the quarter made the highest loss as well, at -3719 cr? The three petro giants — IOC, BPCL and HPCL, collectively lost over 9,300 cr. in the quarter.