Q2 FY2009-2010 Earnings Review
The earnings season for Q2 FY2009-2010 has almost come to an end and its time to review the final numbers.
Sensex PAT is up about 5.7%, and on QoQ basis, it is up 1% which is not bad either. So on that EPS currently stands for Sensex at about Rs 770 per share and a Price to Earnings ration of about 20.7 times. But that is not what we look at, the expected PAT growth because of the base effect for the next two quarters is expected to be 10% up for each quarter. This will take the Sensex EPS for FY10 close to about Rs 930 per share. Thus, the market is currently trading only at about 17 times FY10 expected earnings. With so much liquidity in the markets that is not too bad either.
Net sales:
Net sales on YoY basis may be up just 1% but on QoQ basis it is up 7% which clearly shows the discounts and other freebies offered by India Inc is finally picking up. Volume growth is happening which is one good sign for India Inc. Other income is up about 10% but on QoQ basis it is moving down gradually, which is also good sign. Forex and other financial attritions have been left aside and the focus is purely on the business side.
