Data recap: Q2 earnings, GDP, pulses prices | Mint

Data recap: Q2 earnings, GDP, pulses prices

India’s GDP grew 7.6% in the second quarter of the current financial year, beating the Reserve Bank of India’s projection of 6.5%,
India’s GDP grew 7.6% in the second quarter of the current financial year, beating the Reserve Bank of India’s projection of 6.5%,

Summary

  • News and developments from the week gone by, through numbers and charts.

Every Friday, Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. The second quarter was a mixed one for India Inc, with strong profit growth but the rise in revenues remaining subdued. Meanwhile, the GDP growth figures for the second quarter are also out.

Mixed results

The second quarter earnings season ended on a mixed note, with profits soaring but revenues showing slower expansion, a Plain Facts analysis of 3,559 BSE-listed companies showed. While the aggregate profit growth nearly 36% year-on-year, revenue growth was just 4.7%. Among the sectors, banking, financial services and insurance (BFSI), media and entertainment, and hospitality were among the best performing, while agriculture and allied, oil and gas and chemicals were among the worst.

Pulses pain

While overall inflation has moderated sharply since July, the prices of pulses are continuing to rise mainly due to low sowing. The area under rain-fed kharif pulses this year was 11.5% less than the five-year average, Mint reported citing data from the agriculture ministry. Production was also impacted in major growing states such as Karnataka, Madhya Pradesh and Maharashtra due to below-normal monsoon. Apart from weather-related issues, low yielding and long duration nature of crops like tur disincentivise farmers, leading to lower production.

 

Divestment plan

$1 billion: That’s the amount for which leading hospital chain Aster DM Healthcare Ltd will divest its Gulf business, Mint reported. The company will sell the business to its Indian promoters (Moopen family) and a Dubai consortium. Once the transaction is done, a consortium led by United Arab Emirates (UAE) government-backed Fajr Capital will own 65% of the Gulf entity, while Azad Moopen, the promoter of Aster, will own 35%.

Top performance

Despite the risks of global growth slowdown, the Indian economy is showing resilience and continuing to perform well. As a result, India, with a score of 89 (out of 100), has topped on the Mint’s Emerging Markets Tracker which provides a summary of economic activity across 10 large emerging markets based on seven high-frequency indicators. India’s position was made stronger on strong GDP growth, manufacturing Purchasing Managers’ Index and exports. The Philippines (64) and Brazil (58) secured the second and the third spot, respectively.

Soaring temperature

Dubai is currently hosting the Conference of the Parties (COP), the annual climate change conference, during which nearly 200 countries will discuss ways to slow down climate change and rising temperature of the Earth. The 2015 Paris deal foresaw global warming "well below" 2°C, with an aim for 1.5°C above the pre-industrial levels in the long run. But the temperature has already breached the levels often this year, a Mint analysis showed. The US and China, the world’s two biggest emitters, have never hosted the annual conference.

Business bet

3,800 crore: That’s the amount for which RP-Sanjiv Goenka Group’s PCBL Ltd will acquire 100% stake in Pune-based Aquapharm Chemicals Pvt. Ltd, Mint reported. The company has beaten rivals Dorf Ketal and Tata Chemicals Ltd. With the acquisition, PBCL will get a crucial foothold in the specialty segments of water treatment chemicals and oil and gas chemicals. The company expects to finance the deal through a mix of internal accruals and external fundraising.

Go First’s woes

Lenders to bankrupt airline Go First plan to scout for litigation finance for 12,000 crore tied up in various lawsuits, Mint reported. The amount includes an arbitration award that the company won against engine maker Pratt & Whitney at the Singapore International Arbitration Centre (SIAC) earlier this year and several other lawsuits that are under way. Go First owes over 10,000 crore to aircraft lessors, vendors, financial creditors, and customers. Go First had filed for bankruptcy in May.

 

Chart of the week: Beating expectations

 

India’s GDP grew 7.6% in the second quarter of the current financial year, beating the Reserve Bank of India’s projection of 6.5%, mainly on account of strong performance in manufacturing and construction sectors.

Follow our data stories on the “In Charts" and “Plain Facts" pages on the Mint website.

 

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