Mumbai

The global brokerage firm said GST, which was executed on July 1, adversely affected net profits growth for the first quarter of the current fiscal, with companies in the materials, consumer discretionary sharing bulk of the burden. “Companies in the materials, consumer discretionary and consumer staple sectors reported impact (from GST execution),” the report said.

“Most of the impact was caused by channel destocking and dealer incentivisation which explains why both revenue growth and particular margin performance was weak in the quarter for these sectors,” it added. Financials, utilities, technology and telecom sector companies did not report impact of GST on their earnings in their earnings release. 

Corporates’ revenues saw strong growth at 10 per cent, the highest in last 12 quarters, for April-June period of 2017, compared to same period year-ago. 

“Broad market (1020 companies) revenue growth accelerated to 10 per cent year-on-year even as the net profit fell 11 per cent year-on-year,” the report said.

Visit news.dtnext.in to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android