India Inc seems to have recovered from the after-effects of GST. Net sales of 246 companies (excluding financials, oil & gas and metals) forming part of NSE 500 index grew at an eight-quarter-high of 18.4 per cent year-on-year in the June quarter, according to data provided by Capitaline (updated till Wednesday).

Even operating profit jumped at an eight-quarter-high rate of 20 per cent. Both have happened mainly because of lower base in the same quarter last year wherein sales growth was at the single digit of 7 per cent while the operating profit declined 4 per cent due to disruptions caused by the implementation of the GST and firm input costs, .

Adjusted net profit also grew 8 per cent due to lower base but growth slowed down compared to the previous quarter. This is because of jump in interest and depreciation costs — eight-quarter-high rate of 21.3 per cent and 17.4 per cent, respectively.

Benchmark indices hitting new highs recently coupled with stability in mid- and small-cap indices is a testimony to the fact that market is not disappointed with the earnings performance so far either.

“Key Indices achieved new milestones as the BSE Sensex hit an all-time high, while Nifty settled close to its all-time peaks this week as well as last week and it is still ready to hit new milestones in upcoming time. Reduction in GST rates and good quarterly results continue to boost the sentiments of traders and investors. We don’t see any major hurdle from the side of global cues, reduced trade war tensions and fall in crude oil prices also supported domestic bourses’ sentiments,” said Shubham Jain, Research Analyst, Hem Securities, on Thursday.

Jayant Manglik, President, Religare Broking, also has a similar view. “Markets are gradually moving higher, without giving much importance to the global issues, be it escalation of trade war or currency fluctuation. It shows that participants are focussing mainly on earnings, which are largely in line with street expectation and even surpassed in some cases,” he added.

According to Vinod Nair, Head of Research, Geojit Financial Services, there have been green shoots in earnings.

While most autombile and ancillary companies have reported robust overall performance, sectors such as fast-moving consumer goods, paints, alcoholic beverages, pharmaceuticals and information technology have also reported healthy growth.

Of the top 20 companies in terms of sales in June quarter, 16 are part of Nifty and companies such as Maruti Suzuki and Reliance Industries have reported overall outstanding performance. Of the remaining four, Petronet LNG and Motherson Sumi have reported robust performance.