Q3 FY23 Results Review - Resilient, Margin Expansion Lead To Healthy Double Digit Growth: ICICI Direct

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.Margin recovery was the key highlight for Q3 FY23. Nifty operating margins (excluding financials) rose 230 basis points QoQ to 17%, primarily led by savings realised from lower raw material costs as gross margin expanded 230 bps QoQ. This is post a low of 14.7% margin recorded in the last quarter i.e. Q2 FY23. On an aggregate basis (ex-financials), the Nifty topline for Q3 FY23 was largely flat QoQ at Rs 13.4 lakh crore with Ebitda up 16% QoQ at Rs 2.3 lakh crore and profit after tax by 16.6% QoQ at Rs 1.1 lakh crore. On a YoY basis, Nifty topline was up 16.9% YoY while profit after tax was down 3.9% YoY primarily tracking muted profitability in the commodity space viz. metals and oil and gas domain. Management commentary across businesses was positive on demand outlook, especially on domestic front amid progressive Union budget FY24E wherein government proposes to spend Rs 10 lakh crore (up 33% YoY) as capex with tangible multiplier effect that could potentially drive broad based economic growth domestically. Encouragingly, growth capex was bundled with path of fiscal consolidation.Including financials (BFSI), at the Nifty level, the trend was similar with 1.6% QoQ growth in topline and 13.8% QoQ growth in profit after tax. On YoY basis however it outperformed the ex-financials subset due to healthy double digit credit growth and further improved asset quality in banking space..Click on the attachment to read the full report:.Q3 FY23 Results Review - Modest Quarter; Dragged By Global Cyclicals: Motilal Oswal.DISCLAIMERThis 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.

Q3 FY23 Results Review - Resilient, Margin Expansion Lead To Healthy Double Digit Growth: ICICI Direct

Margin recovery was the key highlight for Q3 FY23.

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