Good Q1 results are most evident in industries like steel, automobiles and their ancillaries and pharmaceuticals, while the numbers for those in information technology and fast moving consumer goods are not so good. When industries like steel do well, it is a clear sign that industrial activity is picking up. Tata Steel thus registered a three-fold rise in net profits. Other companies like Jindal Vijayanagar Steel and Essar Steel also turned in a better performance. Exemplifying the theme of recovery is Tata Engineering which produced the best quarterly performance in five years, thanks to higher vehicle sales and cost reduction. Pharma too registered bullish financials with companies like Ranbaxy Laboratories, Cipla, Novartis India etc showing substantial improvements in both net profits and sales. Bayer India, however, showed a massive 475 per cent rise in its net profits on a 10 per cent increase in sales, clearly pointing to higher margins in its business. However, uncertainties in overseas markets like the US affected the Q1 numbers of IT companies like Satyam Computers. By contrast, Tata Infomedia did exceptionally well. The biggest disappointment, however, is in the poor showing of the FMCG major Hindustan Lever Ltd whose sales and net profits worsened in the first quarter. Since this company is highly exposed to rural India, its dismal performance unmistakably suggests that all is not well with industrial demand — a concern that is all the more salient given the erratic South-West monsoon this year.