How to analyze the quarterly results of the company?
The company declared its quarterly results every three months starting from 1st April to 31st March.
April to June (Q1)- results declared in June or July
July to September (Q2)- results declared in September or October
October to December(Q3)- results declared in January or February
January to March(Q4)- results declared in April or May
It should be declared within 45–60 days after the completion of the quarter.
How to analyze whether the result is good or not?
1. Compare the financials such as Revenue, EBITDA, EBITDA Margin, and Profit after tax based on year on year (YOY) and a quarter on quarter (QOQ)basis.
When you compare the current year quarter with the previous year quarter, it is called YOY comparison.
And when you compared the current quarter with the previous quarter of the same year it is called QOQ comparison.
If sales have been increased with higher margin and profit yoy and qoq it can be considered as good results.
2. Look for a broader view sometimes results based on QoQ comparison maybe not be promising because of higher expenses, low sales in a particular quarter, change in EBITDA, and low margin led by inflation and higher input costs.
If results are good based on YOY, and quarter results are affected by the above reasons we can give the benefit of the doubt.
Some quarters may be good and some may be bad depending on the industry. E.g. hotels and tourism sectors’ generally post good results in the third quarter because of the festive season.
3. Compare the results with the industry leader if they are facing issues with sales and margin in a particular quarter we can make our judgment based on that also.
4. Management commentary is also important to consider, the market reacts based on their view about the company and sector.