Base effects dominate

Q2 corporate results aren't as good as they look

Corporate India’s performance during the July-September 2018 quarter looks promising at first glance. The combined net profit of 1,889 companies grew 16 per cent year-on-year (YoY) and the combined revenues were up 19.6 per cent YoY, the best in at least three years. But the numbers look less impressive if base effects are considered. What also skewed the overall result is the strong performance of a few large corporates. The base effects were obvious. In the same period a year ago, net profits were down 11 per cent, due to teething troubles associated with the launch of the goods and