Q2 FY23 Results Review - BFSI Space Lifts Aggregate Earnings: ICICI Direct
Topline growth at the Nifty level (excluding financials) was at 1.1% QoQ.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Excluding financials, aggregate Nifty earnings posted a muted show in Q2 FY23. Topline growth at the Nifty level (ex-financials) was at 1.1% QoQ.
However, operating profit was down 6.7% QoQ amid pressure on margins, which for the quarter was at 14.6%, down 123 basis points QoQ. Gross margin decline was limited to 19 bps QoQ while employee costs and other expenses rose 28 bps and 76 bps, respectively.
Profit after tax, in Q2 FY23, was down 6.7% QoQ, primarily tracking a decline in margins, but was supported by higher other income as well as lower effective tax rate (27.4% in Q2 FY23 versus 29.5% in Q1 FY23).
On a YoY basis, topline, bottomline growth at the index level was at 30%, -12%, respectively.
Management commentary across businesses was positive on demand outlook (more so on domestic prospects) and with recent cool off in key commodity prices was hopeful of margin recovery in H2 FY23.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.