On Thursday evening, over 40 equity analysts sat unusually quiet at a meeting called by Reliance officials at the President Hotel to explain the company's third quarter results.
The analysts simply couldn't believe they could all go so terribly wrong in predicting the company's quarterly results.
The analysts had estimated the quarter's net profit at Rs 2,200 crore, but they missed the actual figure by a wide margin.
Reliance's Rs 2,800 crore profit was Rs 750 crore higher than the DSP Merrill Lynch estimate and Rs 650 crore more than what HSBC prediction.
There is a famous saying “To err is human.” The HSBC and Merill Lynch Analysts may be very highly qualified but they are human as well. Moreover, the way I see it Reliance has made an unexpected profit. Expected and unexpected, profit is the main goal of all business. Hence, Reliance should be happy. What do you think?
Related articles:
The Times of India
Good News for Reliance is also bad news not only for the analysts, but also for the consumers. Of course, here I am refering to Reliance Infocomm and not Reliance Industries. Visit the link below for the full story.
http://reliancemobilevictimsblog.blogspot.com/
Posted by: Ganpat | February 11, 2007 4:30 AM | Permalink to Comment