Smart rebound from the lows of the goods and services tax (GST) implementation helped companies post the sharpest net profit growth in nine quarters during the three months ended June, an analysis of earnings data showed. However, the numbers still failed to hit market expectations, thanks to costlier raw material and a weak rupee. Meanwhile, consumption growth continued to recover in rural areas, indicating the fading effects of the GST roll-out. Analysis of 1,462 listed companies showed that aggregate net profit, after adjusting for one-time gains and losses rose 22.24% in the first three months of 2018-19. The corresponding figure for the same set of companies was 14.84% in the March quarter, and a meagre 0.01% in the April-June 2017 period. The data excludes banks, financial services firms, and oil and gas companies.

(Live Mint)