HDFC Securities: India Equity Strategy - Quarterly Flipbook: Q1 - Margins Save The Day

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Report.Q1 FY21 was indeed an exceptional quarter, given the impact of Covid-19 induced lockdown, which tested the resilience and agility of business models.As we are nearing the end of reporting season, it has turned out to be a satisfactory one versus the heightened fears and muted expectations.Key highlights of the quarter:1. Margins beat estimates across multiple sectors such as information technology, cement, pharma, staples due to (a) sharp cost-cutting initiatives leading to lower selling, general and administrative expenses (advertising and promotion, travel expenses, etc.) and (b) improved pricing power in the wake of lower competition;2. Positive management commentaries on June/July exit run-rate of revenues as unlocking led to sharp demand rebound in multiple sectors, viz., staples, paints, select autos, cement, insurance, IT, metals, energy;3. Continued market share gains for the larger companies versus smaller players and those from the unorganised sector during Q1;4. Improving moratorium trends for lenders;5. Sharp uptick in capital markets activity leading to strong performance for brokers and exchanges while asset management companies results were subdued..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: India Equity Strategy - Quarterly Flipbook: Q1 - Margins Save The Day

HDFC Securities: India Equity Strategy -Quarterly Flipbook: Q1 - Margins Save The Day

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