An employee walks past a signage for the CNX Nifty Index displayed on the National Stock Exchange of India building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Q1 Earnings Review: SBI Dampens Nifty 50’s Best Earnings Season In Three Quarters

If not for a loss by India’s largest lender State Bank of India, Nifty 50 companies would have met the average estimate in the quarter ended June.

The combined earnings per share of the benchmark index constituents missed the consensus by 7 percent, according to BloombergQuint’s calculations. That’s when three-fourths of the 50 companies either surpassed or met forecasts—the highest in at least three quarters.

At the beginning of the quarter on April 1, the estimate was Rs 134.8. Analysts lowered it to Rs 122.8 as on July 10, when the earnings season kicked off with Tata Consultancy Services Ltd. and IndusInd Bank Ltd. reporting their numbers.

In comparison, the Nifty 50 reported an EPS of Rs 114 for the quarter. Excluding SBI’s loss, the remaining 49 companies reported Rs 120.2.

Q1 Earnings Review: SBI Dampens Nifty 50’s Best Earnings Season In Three Quarters

Overall, 38 companies either surpassed or met forecasts, the highest since the quarter ended September last year. 13 beat estimates, 25 reported numbers in line and 12 missed the estimates.

Q1 Earnings Review: SBI Dampens Nifty 50’s Best Earnings Season In Three Quarters

Here are some of the companies that have changed trends this quarter

Q1 Earnings Review: SBI Dampens Nifty 50’s Best Earnings Season In Three Quarters
Q1 Earnings Review: SBI Dampens Nifty 50’s Best Earnings Season In Three Quarters

Key Trends

Automobiles

  • Only Mahindra & Mahindra’s earnings have met estimates.
  • Tata Motors have reported less-than-expected earnings for the third straight quarter; two-wheelers segment disappoints.

Construction

  • After three quarters of reporting better-than-expected earnings, L&T’s numbers were in line with estimates in the June quarter.

Cement

  • UltraTech underperforms peers ACC and Ambuja (not on the Nifty now) in operational terms.

Consumer Goods

  • ITC and Hindustan Unilever met estimates; ITC surges on strong cigarette volumes.
  • Asian Paints’ April-June earnings beat estimates after at least seven muted quarters.
  • Titan’s earnings for the three months ended June beat estimates for the second straight quarter.

Oil & Gas

  • Reliance Industries Ltd. scores both on the petrochemicals business and well as telecom upstart Reliance Jio Infocomm Ltd.
  • Oil & Natural Gas Corp missed estimates, while other oil marketing companies reported earnings in line with forecast.

Financials

Information Technology

Pharmaceuticals

Telecom

  • Muted quarter for telecom providers on the back of a tariff war triggered by Mukesh Ambani-led Reliance Jio.