Turnaround time

Early trends in corporate earnings hold out hope

The third-quarter results of 284 listed companies offer an encouraging snapshot of corporate performance. The recovery continues to gain strength and more sectors appear to be participating. However, corporate demand still seems patchy and the trends are nascent. Compared to the corresponding period of October-December 2019, net sales have remained flat for this sample but operating profits (PBDIT) have risen 33 per cent on the back of lower interest costs and raw material expenses. Profit before tax (PBT) has risen 88 per cent and profit after tax (PAT) 93 per cent. However, if volatile sectors such as banks, non-banking financial