Q1 Nifty Earnings Scorecard: Most Misses In Four Quarters

India Inc.’s first quarter earnings started with a bang, but has ended on a tepid note. Of the 50 Nifty companies, 30 have either missed or matched consensus estimate of analysts tracked by Bloomberg. Nineteen missed forecasts, the highest in at least four quarters.

The Big Picture

• Beat Estimates: 13
• In line: 18
• Miss Estimates: 19

Key Takeaways

• Most automakers reported in line or weak earnings.
• ACC Ltd., Ambuja Cements Ltd. and Ultratech Cement Ltd. posted strong second-quarter earnings.
• Larsen & Toubro Ltd., the only construction company in Nifty, missed the mark as new orders fell to the lowest in more than three years.
• From the consumer sector, Asian Paints missed forecasts, while Hindustan Unilever Ltd. and ITC Ltd. met street estimates.
• Most of the oil companies reported a strong quarterly performance, barring Bharat Petroleum Corporation Ltd.
• The sector with the highest weight on the index, banking and finance, had a mixed bag in the first quarter.
• While IndusInd Bank Ltd., Yes Bank Ltd. and Indiabulls Housing Finance Ltd. reported strong earnings; state-owned State Bank of India Ltd. and Bank of Baroda Ltd. disappointed.
• Among the private sector banks, Axis Bank Ltd. missed estimates.
• Wipro Ltd. and Tech Mahindra Ltd. reported strong earnings while Tata Consultancy Ltd. disappointed.
• Pharmaceutical companies missed estimates, with Cipla Ltd. being the only exception.

Most Misses In Four Quarters

The number of companies beating estimates fell over the previous three months, while the ones that missed or met forecasts rose.