Early birds bring little cheer: Key firms post sub-par pre-tax Q3 profit

Pre-tax profit growth second-lowest in seven quarters; net sales growth hits three-year low of 3.3%

The earnings season of October-December 2019 quarter of financial year 2019-20 (Q3FY20) has got off to a dull start for corporate India, as pre-tax profit growth for early birds was second lowest in seven quarters, while net sales growth hit a three-year low.

The combined profit before tax (PBT) of 143 early companies that declared their Q3FY20 results was up 12.3 per cent year-on-year (YoY) led by decline in raw material and energy costs. Companies’ raw material cost was down 1.6 per cent YoY during the quarter, while energy and fuel bill declined by 13.4 per cent YoY. In comparison,