Q2 Nifty Earnings: Best Performance In More Than Two Years
Most Nifty 50 companies either met or beat estimates halfway through the second-quarter earnings season—the best operational performance in more than two years, mainly aided by a low base amid a slowing economy.
Half of the Nifty 50 constituents have announced their results for the quarter ended September so far. Of them, 11 beat estimates for operating income and 12 met it. Only two companies missed the consensus forecast, the lowest since March 2017, data compiled by BloombergQuint showed.
The Nifty companies are reviewed based on their operating income and excludes one-offs, including the impact of corporate tax rate cuts. BloombergQuint has been tracking the estimates-versus-performance data of Nifty 50 stocks since the second quarter of 2016-17.
Morgan Stanley said the second-quarter earnings have thus far delivered a comfortable double-digit net profit growth along with a four-percentage-point beat on the research firm’s analyst estimates. “Earnings growth beat was most seen for consumer discretionary, non-bank financial companies and materials sectors,” Ridham Desai, head of equity research and India equity strategist, at Morgan Stanley, wrote in a research note.
Watch | How India Inc. performed so far in the quarter ended September...
Here’s how the sectors have fared so far in the quarter ended September…
- All automakers that reported results so far beat estimates as they witnessed improvement in demand ahead of the festive season.
- Bajaj Auto Ltd.: Higher export and dollar realisations boosted financials.
- Hero MotoCorp Ltd.: Improvement in margins due to recent price hikes and lower input costs.
- Maruti Suzuki India Ltd.: Margins were higher than expected on lower other expenses, favorable foreign exchange rate.
- Tata Motors Ltd.: Cost cuts and lower marketing spends aided margin of Jaguar Land Rover.
- UltraTech Cement Ltd.: Better pricing power in northern and western region aided realisation.
- Overall reduction in cash cost and higher realisation drove Ebitda higher
- UltraTech’s Profit Misses Estimates As Extended Monsoon Weighs On Demand
- Larsen & Toubro Ltd.: Maintained guidance but overall commentary muted.
- Infrastructure segment witnessed decline in order flow.
- International Orders Help L&T Beat The Slowdown Blues
Fast-Moving Consumer Goods
Oil & Gas
- Reliance Industries Ltd.: Operational numbers missed estimates due to weak refining performance.
- Reliance Jio Infocomm Ltd.’s revenue and Ebitda rose on subscriber addition; but average revenue per user fell yet again.
Banking, Financial Services and Insurance
- HDFC Bank Ltd.: Higher other income, lower tax aided profit.
- Kotak Mahindra Bank Ltd.: Bad loans inched up.
- ICICI Bank Ltd.: Better operating performance and credit cost moderation.
- IndusInd Bank Ltd.: Loan growth lower than estimate; margin and bad loans remained stable.
- Axis Bank Ltd.: Headline asset quality improved, slippages rose.
- State Bank of India: Asset quality improved, slippages fell.
- Bajaj Finance Ltd.: Assets under management rose 38 percent over last, asset quality remained stable.
- Bajaj Finserv Ltd.: Life insurance business reported steady operating performance.
- HDFC Bank’s Profit Meets Estimates On Stable Loan Growth, Other Income
- Kotak Mahindra Bank’s Profit Meets Estimates Even As Asset Quality Weakens
- One-Time Tax Expense Hits ICICI Bank’s Bottomline In Q2
- State Bank Of India’s Profit Beats Estimates On SBI Life Stake Sale
- IndusInd Bank’s Profit Meets Estimates Despite Higher Provisions
- Axis Bank Reports Rs 112-Crore Loss Due To One-Time Tax Impact
- Bajaj Finance Profit Beats Estimates, Asset Quality Remains Stable
- Bajaj Finserv’s Profit Rises On Sale Of Investments
- Infosys Ltd.: Lack of revision in upper-end of revenue growth guidance. Margin expands after five quarters.
- HCL Technologies Ltd.: Raised revenue guidance for the ongoing financial year and maintained margin guidance. Operating margin expanded aided by rupee depreciation.
- Wipro Ltd.: Core IT business witnessed subdued growth. IT business margin contracted for fourth straight quarter. The company expects demand environment to be stable but with macro uncertainties.
- Tata Consultancy Services Ltd.: Margin narrowed to the lowest in nine quarters. The company said it would be “hard to see double-digit growth in FY20”.
- Zee Entertainment Enterprises Ltd.: Exceptional loss of Rs 171 crore pertaining to inter-corporate deposits to related parties. Operating margin contracted.
- Operating cash flow at negative Rs 246 crore; cash flow statement not reviewed by the auditor.
- Zee Entertainment’s Profit Misses Estimates On Exceptional Item
- JSW Steel Ltd.: Lower realisation and higher raw material cost dragged operational performance.
- Poor performance of overseas subsidiaries also weighed on consolidated Ebitda.
- Sales volume guidance cut by 3 percent for FY20.
- Capex guidance cut by Rs 4,700 crore to Rs 11,000 crore.
- JSW Steel Profit Beats Estimates On One-Time Tax Gain