On results day, a company usually produces two documents about the same quarter: a press release, and the formal results statement filed with the stock exchange. They are supposed to agree, but they do not serve the same purpose, and knowing the difference saves a lot of confusion.
What each document is
The results statement is a regulatory filing. It follows a prescribed format, is signed off by the board, carries a note on whether it was audited or reviewed, and is the version the law cares about. The press release is a communication. The company chooses what to emphasise, how to word it, and which comparisons to show.
Where they diverge
There is nothing sinister about a press release, but it is written to inform in a friendly way. Common differences:
- Headline metric. A release may lead with “record revenue” or “highest-ever quarterly operating profit”. The statement shows every line, including the ones that did not set a record.
- Adjusted figures. Releases often quote “adjusted” or “normalised” profit that leaves out one-time items. The statement shows the unadjusted number, with exceptional items listed separately.
- Choice of comparison. A release may compare with the previous quarter when the same quarter last year looks less flattering, or the reverse.
- Rounding and units. Releases round and use crores or billions; the statement is in the units prescribed, which can make a figure look different.
A fictional illustration
Imagine Meenakshi Foods reports revenue of ₹1,200 crore. The press release says “revenue up 18% quarter on quarter”, true because the prior quarter was weak. The statement shows the same quarter last year was ₹1,150 crore, so the year-on-year rise is about 4.3%. Neither document is wrong. They answer different questions, and only one of those answers is the usual benchmark.
How to use both
Read the statement first, because it is complete and comparable. Then read the press release for context: management commentary, segment explanations, outlook language and anything the statement does not cover. If the release uses a number you cannot find in the statement, treat it as the company’s own adjustment and look for the reconciliation. If there is none, be careful with it. Settle first which set of figures you are looking at, standalone or group; it also helps to know why the two sets of numbers differ.
What the filing contains that the release usually does not
- The auditor’s report. It states the level of assurance and flags any matters the auditor wants to draw attention to.
- Notes to the results. These explain exceptional items, changes in accounting policy, the basis of preparation and whether previous figures were restated.
- Segment information. Revenue and results by business line, which shows where the numbers came from.
- The format itself. A prescribed layout means every company shows the same lines in the same order, so you can compare one with another.
Why companies write releases at all
A press release is a communication tool. It speaks to journalists, customers, employees and the public in plain language, and a good one helps readers understand the quarter. It may include management commentary, a description of new products or orders, and context that does not fit in a table. These are legitimate and often useful. The point is to know what each document is for, not to distrust either.
A reading order for results day
- Open the exchange filing first and note whether the figures are standalone or consolidated.
- Write down revenue, operating profit and profit after tax, for the quarter and for the same quarter last year.
- Read the notes for exceptional items and restatements.
- Open the press release and look for any figure not in the filing. Note which comparison it leads with.
- Read the management commentary for context on why the numbers moved.
- If a news story quotes a number you cannot find in the filing, check whether it is an adjusted figure, an estimate by the writer, or a mistake.
A short test
Return to Meenakshi Foods. If the release says “record quarterly profit”, look at what the record is measured against. A record against the previous eight quarters is different from a record against the previous eight years. The filing alone cannot tell you, but it gives you the figures to check the claim, and in most cases that takes under a minute.
A reader who uses both documents in this order gets the benefit of the context without losing the discipline of the original. That is a better position than relying on either alone, and a much better one than relying on a headline that summarises a release that summarised a filing.
The same logic applies to news reports and social posts, which are summaries of summaries. When a figure matters to you, go back to the filing on the exchange’s website. Sites such as wealthstar.in summarise filings and say where each figure comes from, but the original document is always the final word.
None of this assumes bad faith. It is simply good practice: the more official and complete the document, the more weight it deserves, and the more promotional the document, the more you should check it against the source.
