Q2 roundup: Indian cos get festive boost; almost 62% post profit rise - Reuters

BENGALURU, Nov 10 (Reuters) - Almost two-thirds of the adjacent 200 Indian companies with marketplace capitalization of $100 cardinal and much person reported a emergence successful nett for the September quarter, information tracked by Reuters showed

Of the 191 companies tracked, 118 reported a emergence successful profit, Refinitiv information showed, with astir 90% of those logging successful a emergence successful quarterly revenue.

Apparel retailers, restaurants, banks, operation companies each saw a emergence successful income and orders, arsenic the state geared up for the archetypal pandemic-free festive play successful 2 years.

Consumers bought up nutrient and different supplies adjacent done burning terms inflation.

"There is decidedly a festive boost which cannot beryllium denied and which is reflected successful net performance," said Vivek Kumar, economist astatine Mumbai-based QuantEco Research.

"There was besides immoderate comfortableness connected input prices moderating successful the quarter, and a boost from pent-up demand. All these factors came unneurotic to help."

Retail income successful India peaks during Diwali, the festival of lights, erstwhile Indians usually splurge connected apparel, accessories, user goods and automobiles. This year's Diwali fell connected Oct. 24.

"It's the archetypal Diwali aft COVID wherever radical are capable to get retired and mingle with their friends and household and that's decidedly helping," Shoppers Stop Ltd (SHOP.NS) Chief Executive Officer Venu Nair told Reuters, aft the section store concatenation posted a nett successful the September quarter, implicit a nonaccomplishment successful the twelvemonth ago. work much

Nair said helium expects income successful the festive 4th to apical pre-pandemic levels.

Maruti Suzuki, India's apical carmaker, reported a four-fold leap successful quarterly profit, portion operation bellwether Larsen & Toubro Ltd (LART.NS) saw a spike successful bid inflows connected a resurgence successful investments successful infrastructure, with respective buildings, factories, metros, and different task works underway arsenic Covid-related restrictions eased.

L&T's net are often seen by analysts arsenic a proxy to the superior expenditure successful the economy, arsenic it undertakes nationalist and backstage infrastructure projects.

India's superior expenditure roseate astir 50% implicit past twelvemonth to 3.43 trillion rupees successful the April-September period, authorities information showed.

Meanwhile, Anarock Property Consultants predicts lodging income this twelvemonth to breach the erstwhile highest of 2014 led by beardown momentum successful festive request and robust show successful the archetypal 3 quarters.

Restaurant revenues roseate much than 90% implicit past year, followed by apparel and accessories, power, construction, chemicals, banks and autos, Refinitiv information showed.

State Bank of India (SBI) (SBI.NS), the country's largest lender, reported grounds quarterly nett and forecast recognition maturation to stay successful double-digits.

"In (an) uncertain and fragile planetary economical environment, the Indian system has showed resilience," SBI Chairman Dinesh Kumar Khara said successful an net league call.

Indicators of aggregate request amusement that the onset of festive play and the pent-up request kept maturation impulse precise strong, helium added.

Even those companies, including Adani Wilmar (ADAW.NS), proprietor of the Fortune cooking lipid brand, whose request successful agrarian India has been tepid, person said sales are rebounding connected the backmost of easing prices of a fewer essentials and precocious revival successful monsoon rains.

India's retail ostentation accelerated successful September to a five-month precocious of 7.41% arsenic nutrient prices surged, but analysts said astir of the interaction has been baked into estimates by markets, arsenic good arsenic customers.

"Inflation is successful amber portion presently and is expected to modulation to the greenish portion successful adjacent 2 quarters," QuantEco's Kumar said.

India's ostentation apt slowed to 6.73% successful October connected weaker nutrient prices and a beardown basal a twelvemonth ago, a Reuters canvass of economists predicted.

"With monetary argumentation effect already attuned to it, the interaction connected home request conditions is apt to beryllium mild," Kumar added.

"The anticipated crisp slowdown successful outer request volition beryllium a dampener for net successful the upcoming quarters."

Reporting by Nivedita Bhattacharjee successful Bengaluru; Additional reporting by Praveen Paramasivam and Aftab Ahmed successful New Delhi; Editing by Dhanya Ann Thoppil

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