This article taken from financial express
How to read quarterly financial statements; top 5 points to know
As an investor, some of you may be wondering why companies publish their quarterly financial statements apart from their annual reports. Of course, it is mandated by the law of the land and, most importantly, as per listing agreements with the stock exchanges, all listed companies need to disclose their quarterly financial results within 45 days from the end of the quarter in a specified format. Annual reports help investors measure the direction and consistency in the financial performance of a company, whereas quarterly financial reports gives an indication on its capabilities to achieve its long-term projections. Let us see some of the important parameters that you need to look at and what they mean.
Operating profit is computed after deducting all operating expenses from net sales,
Profit after tax is popularly known as bottom line, which exhibits the company’s net earnings or losses made during the period.