Evaluation of Quarterly Results

The cover story published in the previous issue thoroughly sheds light on the Q2FY23 results. For an ordinary investor like me, what are some basic parameters to use while evaluating whether a company is fundamentally strong or not? - Rakesh M

Editor Responds: Thank you for the appreciative words. Quarterly Results are a good indicator of the company’s growth and positioning over a period of time. While investing in any stock, it is crucial for an investor to evaluate the quarterly performance along with the performance of the stock in the equity markets. Some basic requirements while evaluating the company’s latest quarterly results include top-line (total sales or revenues) growth and guidance, profit growth and guidance, sustainability of earnings, comparison of numbers on a year-on-year and quarter-on-quarter basis, operating profits and operating margins and shareholding pattern and pledged data. While this is an illustrative list, there are more aspects that need to be taken into consideration while analysing the quarterly results. We hope we have answered your query. Keep writing to us!