- The Core
- Posts
- Quarterly Reports: High Drama, Low Value?
Quarterly Reports: High Drama, Low Value?
In partnership with
Good Morning. US president Donald Trump is constantly at it on his social media platform Truth Social — his musings ranging from world politics to American sport. On Monday, for once, he had a brainwave that could resonate with even companies in India. Is it time to rethink the mandate that companies must declare results every quarter?
In other news, daily essentials are set to get cheaper as benefits from the Goods and Services Tax (GST) cuts trickle down. Meanwhile, on this week's Build On Blockchain: how the technology could put an end to counterfeiting of goods.
THE TAKE
More Noise Than Clarity: Should We Rethink The Quarterly Earnings Cycle?
India’s era of quarterly results began in 2000, when the markets regulator, the Securities and Exchange Board of India (SEBI), mandated that all listed companies declare their earnings every three months.
Till then, it was only annual results.
However, the practice truly evolved into a spectacle a year later, thanks to IT giant Infosys.
In a move that would set new standards, Infosys transformed its announcement for the Q1 2001 results into a high-production event.
From a specially designed studio in its Bengaluru campus, the company pandered to live business television news, with a press release meticulously detailing the timing for audiences in both India and New York, and the list of speakers, led by then-Chairman and CEO NR Narayana Murthy.
Infosys had masterfully seized the twin opportunity of disclosing its numbers and doing so with unmatched panache.
Over the years, this production only grew in size and scale as other IT firms jumped on the bandwagon. Yet, none could quite match Infosys's chutzpah.
The quarterly drama, often accompanied by voluntary — and highly influential — earnings guidance, became a unique hallmark of the tech sector, serving as a public statement of confidence.
Time For Change?
The whole system of frequent results reporting is now being questioned, after a while.
The debate was reignited when US president Donald Trump suggested on Monday that public companies in the US should report only semi-annually — an idea which, incidentally, has simmered quietly within corporate boardrooms for decades.
The drawbacks of six-month reporting are obvious: investors would be left in the dark for half the year, forcing share prices to react more to intuition and public data than to hard numbers.
This lack of transparency could cut both ways, potentially hiding both bad and good news.
However, from a corporate perspective, the current system has often been seen as onerous.
CEOs complain about the immense time, effort, and cost dedicated to compressing a quarter's performance into a report within weeks of its close.
“We are barely 40 days into a quarter and we are already working on the results,” one IT CEO remarked to me a few years ago.
While modern technology has streamlined the consolidation process, the pressure to perform and face investors every 90 days does create stress and encourages a short-term mindset.
This short-termism is the strongest argument for change.
Finding Middle Ground
Companies needing to make long-term bets, particularly in R&D, require breathing room.
The relentless quarterly cycle acts as a disincentive, often pushing CEOs toward decisions that boost short-term returns at the expense of sustainable growth — a problem exacerbated by increasingly shorter CEO tenures.
A middle ground may exist even as we acknowledge that the genie is firmly out of the bottle now.
One solution could involve reduced quarterly disclosures, a ban on guidance, and a reinforced regulatory focus on the immediate reporting of material developments — something that happens in any case.
Ultimately, this debate offers a valuable moment for introspection.
After nearly 25 years of mandated transparency, it’s time to examine what the quarterly earnings saga has truly achieved, and more importantly, what it has not.
This is one Trump brainwave that deserves serious consideration, more than most.
MESSAGE FROM OUR SPONSOR
If you work in fintech or finance, you already have too many tabs open and not enough time.
Fintech Takes is the free newsletter senior leaders actually read. Each week, we break down the trends, deals, and regulatory moves shaping the industry — and explain why they matter — in plain English.
No filler, no PR spin, and no “insights” you already saw on LinkedIn eight times this week. Just clear analysis and the occasional bad joke to make it go down easier.
Get context you can actually use. Subscribe free and see what’s coming before everyone else.
BUILD ON BLOCKCHAIN
How Blockchain Could End The Reign Of Counterfeit Drugs
What?
We’ve all seen fakes around us. A shoe that looks a little too much like an original from a famous brand, or even medicines that don’t seem right. Most probably cheap copies.
The problem is, these aren’t small annoyances anymore. Counterfeits are a $3 trillion global market, and unfortunately, India is one of the big exporters.
A fake pill or a faulty car part can put lives at risk.
Brands have tried holograms, stickers, and barcodes. The trouble is, counterfeiters copy them easily. So the problem just keeps coming back.
What’s really needed is a way to make fakes harder to pass off, and to give the common man a simple way to check if what they’re buying is genuine.
One easy way to do that would be to bring the supply-chain management on blockchain.
How?
Blockchain is naturally associated with cryptos. But in reality, it’s much more versatile.
What sets it apart from most other technological tools is the way it's built and the kind of security it offers.
One of its key features is that it doesn't allow a record to be modified.
Simply speaking, it's like a diary where you can make entries without worrying that someone could change it, or worse, delete it.
There is another layer of security here. Instead of one person keeping the diary, it’s shared across many hands. So no single person can quietly change the story or write a different story. That’s powerful when it comes to dealing with counterfeits.
Why It Matters
This technology helps in two ways. One, you can track a product, right from the source of its raw material to the warehouses it’s been to.
And two, it makes sure you can know for sure whether the final product in your hand is authentic or not.
On the packet is a special code linked to the blockchain. You just need to scan it using your phone and get the results instantly.
What can be its use cases?
Brought to you in partnership with Algorand India.
Body
FROM THE PERIPHERY
GST Boosts Everyday Picks!
Several FMCG majors are cutting product prices from September 22 to pass on the full benefit of GST rate reductions to consumers. Dairy giant Mother Dairy slashed rates across milkshakes, paneer, jams, frozen foods, butter, cheese, pickles, tomato puree, and ice creams under Safal.
By The Numbers: Packaged paneer will now be GST-exempt, while many items have moved from the 12% and 18% slabs to 5%. Prices of everyday staples like butter, cheese cubes, and chocobars are down by Rs 2–10. Hindustan Unilever also announced cuts in soaps, shampoos, coffee, health drinks, and soups, with Dove, Sunsilk, Lifebuoy, Boost, Bru, and Knorr products all becoming cheaper.
Experts Say: Manish Bandlish, managing director, Mother Dairy said, "As a consumer-centric organisation, we are passing on 100 per cent of the tax benefit to our patrons. The revisions will boost demand and benefit both farmers and consumers."
Tax Clarity Unveiled.
The Central Board of Indirect Taxes and Customs (CBIC) has issued fresh clarifications on Goods and Services Tax (GST) changes affecting the pharmaceutical, insurance, logistics, and transport sectors. The National Pharmaceutical Pricing Authority (NPPA) has directed drug and device makers to revise MRPs in line with new GST rates and issue updated price lists, while old stock need not be relabelled if retailers ensure compliance.
Flashpoint: Meanwhile, the commerce ministry has asked retail chains to advertise 'Discount due to GST' across stores, bills and media. Nearly 400 products—from soaps to cars—will cost less as GST slabs are simplified to just 5% for essentials and 18% for others, effective September 22.
What's Next? For logistics, local delivery services are confirmed to be taxable at 18%, with liability depending on whether the supplier is registered or operates through an e-commerce platform. Importantly, the Goods Transport Agency (GTA) will exclude e-commerce operators providing or facilitating local delivery.
Jindal Saw Under Scrutiny
The Competition Commission of India (CCI) raided the offices of Jindal SAW and Maharashtra Seamless over alleged bid rigging in the Oil and Natural Gas Corporation’s (ONGC) steel pipe tenders, according to two sources Reuters interviewed.
Catch Up Quick: The investigation began after ONGC filed a complaint in 2023, prompting the CCI to collect supplier data and pricing details. Officials reportedly seized documents and questioned staff during the raids. Jindal SAW pledged cooperation, while Maharashtra Seamless stayed silent.
Implications: News of the probe hit markets immediately, dragging Jindal’s shares down 2.6% and Maharashtra’s by 1.6%.
Beware, The Sanctioned Spartan.
Spartan, a Russian tanker that the European Union (EU) sanctioned, discharged 1 million barrels of crude oil at Indian refiner HPCL-Mittal Energy Ltd's (HMEL) Mundra terminal. That’s even though last week, the Adani Group, which owns the Mundra port, issued orders barring the entry of vessels that are sanctioned by the EU, the UK and the United States at all its 14 ports. But, an Adani spokesperson did mention that the ban does not apply to vessels already en route.
Context: Dubai-based Nova Shipmanagement manages Spartan and Citrine Marine, a UK-based shipping company, owns the vessel.
The Turning Point: On Monday, Noble Walker, another sanctioned vessel carrying Russian oil, changed its destination, from Adani’s Mundra port to the Vadinar port, which Nayara Energy owns.
MESSAGE FROM OUR SPONSOR
The Gold standard for AI news
AI will eliminate 300 million jobs in the next 5 years.
Yours doesn't have to be one of them.
Here's how to future-proof your career:
Join the Superhuman AI newsletter - read by 1M+ professionals
Learn AI skills in 3 mins a day
Become the AI expert on your team
THE TEAM
✍️ Zinal Dedhia, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas
🤝 Reach 80k+ CXOs? Partner with us.
✉️ Got questions or feedback? Reach out.
💰 Like The Core? Support us.
