Q3 Earnings Review: Nifty Companies Missed Estimates Because Of This…
A man gestures as taxis line up at a gas station. (Photographer: Dhiraj Singh/Bloomberg)

Q3 Earnings Review: Nifty Companies Missed Estimates Because Of This…

The Nifty 50 companies missed the average estimate for the quarter ended December, dragged by the loss of Tata Motors Ltd.—the biggest in India’s corporate history.

The combined earnings per share of the benchmark index constituents missed the consensus estimate by 19 percent, according to BloombergQuint’s calculations. That’s when 41 of the 50 companies have either met or beat estimates—the highest in at least six quarters. Of this, 20 companies beat estimates, and 21 reported numbers in line with expectations.

The companies reported a combined earnings per share of Rs 97 for the three months ended December. That compares with the Rs 119 estimated as on Jan. 9 when the earnings season kicked off with IndusInd Bank Ltd. reporting its numbers.

While almost all automakers missed estimates, corporate-facing banks and oil and gas firms aided overall earnings in the reporting quarter.

Here’s how the sectors have fared this quarter:

Q3 Earnings Review: Nifty Companies Missed Estimates Because Of This…


  • UPL Ltd. reported strong double-digit growth in all geographies, barring India.
  • It closed the Arysta LifeScience acquisition.


  • All automakers missed estimates in the third quarter.
  • Raw material costs and weak demand impacted financials.
  • Muted outlook by managements.
  • Tata Motors Ltd. loss weighed on Nifty EPS.


  • UltraTech Cement Ltd. met estimates, but the management’s outlook was weak.
  • Subdued pricing impacted earnings.
  • Realisations and utilisations were lower-than-estimated in the third quarter.


Consumer Stocks

  • Volume growth surprised, but margin pressure remained.
  • Continued to see resilient top line and volume growth.
  • Commodity input prices dragged gross margin.
  • Titan Company Ltd. beat estimates, led by the jewellery segment.

Oil & Gas

Financial Institutions

  • Infrastructure Leasing & Financial Services Ltd. concerns continued to weigh on private sector banks.
  • Corporate banks outperformed retail-focused lenders.
  • State Bank of India beat estimates on account of better asset quality and lower slippages.
  • Margins remained stable for banks.
  • Cautious stance on lending by housing finance companies.

Information Technology

  • Tech Mahindra Ltd. outperformed peers on the back of strong deal wins.
  • All other IT companies reported numbers in line, but margin remained weak.



  • U.S. sales improved but outlook remained cautious.
  • Domestic markets continued to drag.
  • Sun Pharmaceutical Industries Ltd. beat estimates on the back of one-time adjustments related to deferred tax.


  • Average revenue per user of mobile operators grew for the first time in last 10 quarters.
  • Bharti Infratel Ltd. beat estimates on the back of cost cuts and higher rentals.
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