Thoroughbred racehorses run down the track after crossing the finish line during a morning race before the 143rd running of the Kentucky Derby at Churchill Downs in Louisville, Kentucky, U.S.

Q4 Nifty Earnings: The Scorecard So Far

A majority of companies that have so far announced quarterly results either beat or met estimates.

Of the 20 companies from the NSE Nifty 50 Index, 10 reported numbers in line with forecasts while five beat consensus estimates, according to BloombergQuint’s analysis. Five missed the estimates, the highest in at least four quarters in the first half of the earnings season.

Among the five that surpassed analyst targets are Tata Consultancy Services Ltd. and Bharti Airtel Ltd. The 20 firms that have reported earnings have a combined 57 percent weight in the benchmark index.

The Big Picture

  • Beat Estimates: 5
  • In Line With Estimates: 10
  • Missed Estimates: 5

Close To The Halfway Mark

Key Takeaways

Agriculture

  • UPL met estimates after two weak quarters.
  • FY19 guidance is cautiously optimistic on challenging market conditions.

Automakers

  • Maruti Suzuki reported weak earnings for the first time since first quarter of FY17.
  • The Ebitda was impacted by one-offs in employee costs and other expenses.
  • Hero MotoCorp. reported matched estimates for a fifth straight quarter.

Cement Producers

  • Ultratech Cement reported fifth strong quarter in last six on higher volume growth combined with cost efficiencies.

Oil Marketing Companies

  • Reliance Industries missed street estimates weighed down by weak refining business and lower-than-expected Reliance Jio numbers.

Financial Services

  • Yes Bank reported strong financials; growth momentum accelerates while asset quality sees sharp improvement.
  • Axis Bank reported first quarterly loss since listing as new RBI guidelines on bad loans weighs heavily on asset quality and earnings.

IT

  • TCS reported solid earnings after six quarters of average performance. Also, strong management commentary with performance led to a rally in shares.
  • HCL Tech meets estimates but provides weak outlook on organic growth.
  • Wipro earnings impacted by the provisions made for bankruptcy of a telecom client.

Metals

  • Higher volumes and commodity prices leads to Vedanta missing estimates.

Ports and Shipping

  • Adani Ports meets estimates after two strong quarters; robust volume growth and SEZ income surprise.

Telecom

  • Bharti Airtel sees strong Africa business and better than expected average revenue per user in India business.
  • Bharti Infratel impacted by consolidation in telecom service provider space that led to tenancy exits.
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