Q4 FY23 Results Preview - Commentaries On FY24 Demand And Margins Remain Critical: Axis Securities

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..Axis Securities Report.Q4 FY23 earnings season was marked by weaker macro, rising interest rates, banking challenges in the U.S. and European markets, and moderation in discretionary demand. On the positive side, earning season was led by the sequential margin expansion on account of moderation in commodity prices and the uptick in credit growth. The export-oriented themes, however, are likely to laggard. We believe the broad-based earnings momentum, which remained robust for multiple quarters, is likely to pause for a brief time in Q4 FY23. Based on our and consensus estimates, we forecast Nifty to deliver Revenue/Ebitda/profit after tax growth of 11%/14%/12% respectively. Moreover, excluding oil and gas and metals, Nifty revenue/Ebitda/profit after tax is expected to grow by 18%/24%/25% respectively. On the sectorial front, the financial and automobile sectors are likely to post the highest incremental earnings while a contraction is expected in the metals sector. The Indian economy exhibited remarkable resilience in Q4 FY23 and the Reserve Bank of India governor also highlighted a visible uptick in most of the high-frequency indicators over the last quarter. High-frequency indicators such as GST collection, power consumption, and E-way bills are pointing upwards on a sequential basis, indicating robust demand even after the festival season. Rural demand is also recovering and may see a further pick-up in the upcoming month on account of better Rabi crops. Discretionary demand, though, remained weak during the quarter. Keeping this in perspective, we believe the majority of the companies will likely report revenue growth in line with the expectation. However, some pressure is likely to be visible on commodity producers and the exportoriented sectors..Click on the attachment to read the full report:.Q4 FY23 Results Preview - Margin Bottomed To Watch For Growth: IDBI Capital.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.

Q4 FY23 Results Preview - Commentaries On FY24 Demand And Margins Remain Critical: Axis Securities

Q4 FY23 earnings season was marked by weaker macro, rising interest rates, banking challenges in the U.S. and European markets.

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