No one minds extra income. When added to the primary income, it can provide a boost to it. What if extra income becomes as large as your primary income or even bigger than it? Never mind, you may say. Money is money, no matter where it comes. Well, here is the twist. Your extra income became as large as your primary income not because your extra income increased. It happened because your primary income diminished? How does that feel now?
The companies listed below have been going through the same phase. Their 'other income' has been at least 50 per cent of their operating income for the last three years. If this other income were not there, their operating income would have been much smaller or even negative.
This other income comes from interest earned on deposits, foreign-currency gains, profit on investments, sale of fixed assets, writing back of provisions and so on. These activities are peripheral to a company's business. Hence, a large share of other income in the total operating income suggests some problem with the core operations of these companies.
What's more, other income isn't sustainable and a company can't depend on it. For instance, this year if you made gains on foreign-currency transactions, the next year you may make a loss.
No company can rely on its other income to boost its bottom line. It has to be the core income. So, don't get carried away by net or operating profits of these companies. If you are researching any of them, try to find out what's causing their core businesses to suffer and when they will likely revive.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
