Nifty’s Q4 Earnings Scorecard: The Biggest Surprise In A Year
India’s 50 largest companies reported the biggest earnings surprise in at least a year.
Among the NSE Nifty 50 companies, 18 beat consensus forecast of analysts surveyed by Bloomberg. That’s the best performance since the three months to March 2017. Nineteen companies reported earnings in line with estimates, while 13 disappointed the Street.
All the metal and cement companies surpassed analysts estimates, while most automakers, oil and gas firms and drugmakers missed forecasts. Here’s a snapshot:
Segment Wise Key Takeaways
- UPL Ltd., the only farm-focused company in the 50-stock index, met analysts estimates.
- The agro-chemicals maker is cautious about guidance for 2018-19 due to challenging market conditions.
- Maruti Suzuki India Ltd. earnings were below expectations for the first time in six quarters.
- Tata Motors Ltd. was below-par because of the sluggish demand for its Jaguar Land Rover luxury vehicles.
- Eicher Motors Ltd. missed estimates as well.
- Hero MotoCorp Ltd.’s numbers were in line with expectations.
- Bajaj Auto Ltd.’s operational performance was better than expected, driven by a favourable mix and price hike.
- Mahindra & Mahindra Ltd. benefitted from lower costs.
Banking and Financial Services
- State Bank of India and Yes Bank Ltd. surpassed forecasts while Axis Bank Ltd. and ICICI Bank Ltd. disappointed the Street.
- Robust growth and a healthy outlook helped Bajaj Finance Ltd. and Bajaj Finserv Ltd.
- Kotak Mahindra Bank Ltd., HDFC Bank Ltd., IndusInd Bank Ltd., HDFC Ltd. and Indiabulls Housing Finance Ltd.’s numbers were in line with estimates.
- Higher volume growth and cost cuts helped UltraTech Cement Ltd., the country’s largest cement maker, report a better-than-expected operational performance.
- Larsen & Toubro Ltd.’s operating income surpassed estimates and the construction giant forecast a strong growth in 2018-19.
- Hindustan Unilever Ltd.’s surpassed analysts estimates as rural consumption continues to improve. Titan Company Ltd. also surprised analysts.
- ITC Ltd. and Asian Paints Ltd. met expectations.
- The country's largest IT firm Tata Consultancy Services Ltd. exceeded forecasts after six quarters of subdued performance.
- Tech Mahindra Ltd. surpassed expectations on a deferred tax gain.
- Infosys Ltd. and HCL Technologies Ltd. matched estimates.
- Wipro Ltd. disappointed the street due to a write-off for an insolvent client.
- Zee Entertainment Enterprises Ltd., the only media company in Nifty 50 Index, reported numbers in line with estimates.
Metal And Mining
- Higher commodity prices and volumes helped all metal companies.
- Coal India Ltd. reported better-than-expected numbers in the March quarter.
Oil & Gas
- Bharat Petroleum Corporation Ltd. surpassed estimates after three subdued quarters.
- Indian Oil Corporation Ltd. and Hindustan Petroleum Corporation Ltd. reported earnings that met estimates.
- Reliance Industries Ltd., GAIL India Ltd. and Oil and Natural Gas Natural Corporation missed forecasts.
- Sun Pharmaceutical Industries Ltd. led with a strong outlook even as drugmakers expect pricing pressure to continue in the U.S.
- Lupin Ltd. reported numbers that were in line estimates, while Cipla Ltd. and Dr. Reddy's Laboratories Ltd. were below-par.
Ports and Shipping
- Adani Ports and Special Economic Zone Ltd. met estimates; robust volume growth and SEZ income surprised analysts.
- NTPC Ltd.’s earnings were as expected, while Power Grid Corporation Of India Ltd.’s numbers were below analyst expectations.
- Bharti Airtel Ltd. reported a strong growth in Africa business and better-than-expected revenue per user in India. Its tower unit Bharti Infratel Ltd. was impacted by consolidation in telecom sector, reducing tenancies.
Grasim Industries Ltd., recently added to the 50-index gauge, reported earnings in line with estimates despite a one-time provision.