Motilal Oswal: Q1 FY21 Interim Earnings Review - Healthcare And Technology Beat Earnings Estimates

Motilal Oswal Report

For the 33 Nifty companies, sales/Ebitda/profit before tax/profit after tax declined 27.7%/1.1%/22.2%/18% (versus estimate decline of 27.3%/5.9%/31.0%/26.1% YoY).

Of the 33 Nifty companies that declared their results, on the PAT front, 17 have surpassed, 8 have missed, and 8 have met our expectations.

For the Motilal Oswal Financial Services Ltd. (MOFSL) Universe, sales/Ebitda/profit before tax/profit after tax declined 27.5%/6.1%/27.2%/24.5% YoY (versus estimate decline of 27.1%/12%/35.5%/31.6% YoY).

The earnings upgrade/downgrade ratio for FY21 so far is skewed in favor of upgrades. 46 MOFSL Universe companies have reported upgrades of more than 3% (of which 36 companies have seen upgrades of more than 10%), while 22 have posted downgrades of more than 3%.

Among the Nifty constituents, UltraTech Cement Ltd., Britannia Industries Ltd., Asian Paints Ltd., Hindustan Unilever Ltd., State Bank Of India, Bajaj Finance Ltd., Dr. Reddy’s Laboratories Ltd., Sun Pharmaceuticals Ltd., HCL Technologies Ltd., Infosys Ltd., Tech Mahindra Ltd. and Wipro Ltd.have exceeded our profit estimates.

On the flip side, Larsen and Toubro Ltd., ITC Ltd., IndusInd Bank Ltd., Kotak Mahindra Bank Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd., and UPL Ltd. have missed expectations.

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