Interpreting and Analysing Quarterly Results with m.Stock

Quarterly results are like a health check-up for listed companies. Every three months, these reports provide a snapshot of a company’s financial and operational performance. If you're an investor or planning to step into the stock market, knowing how to decode quarterly results is a powerful skill, and one you’ll use often. 

Let’s dive into what these reports are, how to interpret them, and how m.Stock can help you make data-backed investment decisions. 

What Are Quarterly Results? 

Quarterly results are unaudited financial statements published every three months. They give investors a way to track a company’s journey toward its yearly and long-term goals. These reports allow you to assess whether to continue investing in a company or consider an exit if performance is slipping. 

Key components include: 

• Statement of Profit & Loss 

• Segment-wise results 

• Balance Sheet and Cash Flow (with six-month and YTD figures) 

Under SEBI regulations, companies must publish these results: 

• Q1: April–June 

• Q2: July–September 

• Q3: October–December 

• Q4: January–March 

Deadlines: 

• Q1 to Q3: Within 45 days of quarter-end 

• Q4 (Annual): Within 60 days of year-end 

How to Read Quarterly Results 

Interpreting quarterly data involves comparing performance across time periods: 

QoQ (Quarter-on-Quarter): Compares with the previous quarter 
YoY (Year-on-Year): Compares with the same quarter in the previous year 

Both are essential to understand the trajectory of a business. But beyond numbers, keep an eye on analyst expectations stock prices can rise or fall depending on whether actual results beat or miss these market estimates. 

Structure of a Quarterly Report 

SEBI mandates a standard format for quarterly results. Key sections include: 

• Revenue from operations 

• Other income 

• Total expenditure 

• Profit at various stages (Operating, EBIT, PBT, PAT) 

• Earnings per share 

• Segment results 

• Other comprehensive income 

• Notes and disclosures 

How to Analyse Quarterly Results 

1. Income Analysis 

Look at how revenue from core operations is trending. 
Example: 

• Q3FY22: ₹5707.47 Cr 

• QoQ growth: 12% 

• YoY growth: 9.87% 

• YTD growth: 24.23% 

Formula: 
Growth (%) = [(Current – Previous) ÷ Previous] × 100 

2. Expenditure Review 

Focus on raw material costs, salaries, and operating expenses. 

• Raw Material Cost: +27.68% YoY, +68.24% YTD, -5.58% QoQ 

• Other Expenses: +8.12% QoQ, +14.95% YoY, +28.88% YTD 

If input costs rise due to external factors (like crude prices), it helps explain pressure on margins. 

3. Profit Breakdown 

Evaluate different layers of profit to assess financial health: 

• Operating Profit = Total Revenue – Operating Expenses 

• EBIT = Revenue – (Operating Expenses + Depreciation) 

• PBT = EBIT – Interest 

• PAT = PBT – Tax 

Exclude extraordinary gains/losses for clean analysis. 

4. Profitability Ratios 

Measure margins at each stage: 

• Operating Margin = Operating Profit ÷ Revenue 

• EBIT Margin = (EBIT ÷ Revenue) X 100 

• PBT Margin = (PBT ÷ Revenue) X 100 

• PAT Margin = (PAT ÷ Revenue) X 100 

A margin rise may suggest a price hike or operational efficiency, while a dip may signal discounts or rising costs. 

5. Other Comprehensive Income 

These include unrealised gains/losses. While not directly affecting cash flow, they offer useful insights into market-linked asset performance. 

6. Total Comprehensive Income 

This is the sum of profits and comprehensive income, and it ultimately feeds into the shareholders’ equity. 

7. Equity Capital and EPS 

Earnings Per Share (EPS) shows how much profit is earned per share. 
Higher EPS = better returns to shareholders. 
Use diluted EPS for accuracy it includes potential convertible securities. 

Segment Results 

Segment-wise reporting reveals the most and least profitable parts of a business based on products or geography. Use the same tools above (QoQ, YoY, margins, EPS) to understand what’s driving performance. 

For example: 

• A telecom company might report different performance in mobile services vs. broadband 

• A manufacturing firm might break down domestic vs. international sales 

This breakdown helps you assess which divisions are scalable, profitable, or in need of attention. 

Final Thoughts 

Quarterly result analysis is your toolkit for making informed investing decisions. With m.Stock, you can track these reports in real-time, compare performance across quarters, and align your strategy with company fundamentals. 

Pro Tip: Always analyse multiple quarters together, not in isolation, and combine both financial and operational insights. 

Stay ahead of the market, one quarter at a time.