India Inc Q2 earnings start on positive note, tax rate cut boosts profit

Pre-tax profit is up 20.7%, net up 15%; top-line growth lowest in 3 years

The July-September 2019 quarter (Q2) earnings season has started on an optimistic note for corporate India. Excluding the exceptional gains and losses, the combined net profit of 200 companies that have declared their results so far is up 15 per cent year-on-year (y-o-y), while profit before tax (PBT) has risen by a higher rate of 20.7 per cent, thanks to the cut in tax rates.

In comparison, net profit was up 23.3 per cent in the year-ago period and 20.1 per cent during the April-June 2019 quarter. Similarly, PBT was up 12.2 per cent in the year-ago period and 18.6