Not good company: Q1 results disappoint

April-June 2017 was another disappointing quarter for Indian companies, with net profit contracting by 11% against the same period a year ago. Global cyclicals and banking were hit.

However, relatively better sales growth was encouraging. Retail, mining, sugar, metals, textiles and auto ancillaries, among others, continued to deliver revenue growth. Sectors such as telecom, healthcare, trading, agro chemicals reversed recent trends, seeing revenues shrink.

Volumes growth of most consumer companies was relatively poor in first quarter of FY18, likely due to GST. Except sectors like sugar, auto ancillaries and logistics, revenue growth in most other sectors in June quarter was much lesser than the previous quarter.

Transition to GST on July 1 was widely expected to affect corporate profits in September quarter. ET looks at the sectoral sales and EBIT growth for the last two quarters: