Q1 Earnings Review: These 5 Nifty50 stocks posted 40-92% fall in net profit

Hindalco: Aditya Birla Group flagship Hindalco Industries posted a 40.4% decline in its consolidated net profit to ₹2,454 crore for the first quarter ended June 2023 as against ₹4,119 crore in the year-ago period. On a sequential basis, the profit remained flat at 1.7% from ₹2,411 crore earned during the March quarter. Meanwhile, the consolidated revenue for the company fell 8.3% YoY to ₹53,382 crore, as against ₹58,229 crore a year ago, down 5% from ₹56,209 crore recorded in the previous quarter. The company said the decline in revenue was on account of unfavorable macros and subdued volumes. EBITDA slumped 32% to ₹5,714 crore and operating profit margin contracted a whopping 375 basis points to 10.78%. The stock has gained 6% in the last 1 year but lost 3% in 2023 YTD. Of 21 analysts polled by MintGenie, 9 have ‘strong buy’ and 11 have ‘buy’ recommendations for the stock. However, 1 has a ‘hold’ call.

Divi's Labs: The pharma firm missed estimates to post a 49% YoY decline in its consolidated net profit at ₹356 crore for the quarter ended June 2023. Revenue from operations during the first quarter also fell 21% to ₹1,778 crore in Q1FY24, compared with ₹2,255 crore in the same quarter of last year. EBITDA also fell 40.6% to ₹504 crore and EBITDA margin or operating profit margin also fell 930 basis points to 28.3% in the reported quarter compared with 37.6% in the same quarter last year. The stock has gained 2% in the last 1 year and around 7% in 2023 YTD. Of 21 experts who participated in a MintGenie poll, 3 have ‘strong buy’ and 1 has ‘buy’ recommendation for the stock. However, 5 have ‘hold’, 10 have ‘sell’ and the rest have ‘strong sell’ calls.

Grasim: The firm reported a 56.1% YoY fall in its standalone net profit for the June quarter (Q1FY24) to ₹355.27 crore versus ₹808.56 crore in the year-ago period. Meanwhile, its standalone revenue from operations also declined 14% on year to ₹6,237.55 crore during the quarter ended June from ₹7,253.04 crore in Q1FY23. EBITDA on the standalone basis slumped 42% YoY to ₹789 crore and the operating margin dropped to 10.8 percent in the quarter under review, from 18.2 percent in the year-ago period. The stock was up 8% in the last 1 year and 5 percent in 2023 YTD. Of 9 experts who participated in a MintGenie poll, 4 have ‘strong buy’ and 3 have ‘buy’ recommendations for the stock. However, 1 has a ‘hold’ and 1 has a ‘sell’ call on the stock.

UPL: Agrochemicals major UPL disappointed Street with its consolidated net profit nosediving 81% YoY to ₹166 crore in the quarter ending June 2023. Consolidated revenue from operations also plunged over 17% YoY to ₹8,963 crore in Q1FY24. Meanwhile, its EBITDA declined 32% YoY to ₹1,593 crore and its EBITDA margin shrunk 387 basis points on-year to 17.8%. The global agrochemical industry has been going through a challenging phase over the last two quarters, as distributors prioritised destocking and focused on tactical purchases amid high channel inventories, said UPL. The stock has shed 20% in the last 1 year and over 16% in 2023 YTD. Of 24 experts who participated in a MintGenie poll, 10 have ‘strong buy’ and 7 have ‘buy’ recommendations for the stock. However, 6 have ‘hold’ and 1 has a ‘sell’ call on the stock.

Tata Steel: The steel major posted a 92% YoY fall in its consolidated net profit for the June quarter to ₹633.95 crore versus ₹7,764.96 crore in the year-ago period. Consolidated revenue also dropped 6.21% Yoy to ₹59,489.66 crore in Q1FY24 as against ₹63,430.07 crore in Q1FY23, dragged by lower volumes, which were partially offset by higher realisations across geographies. Meanwhile, the expenses of the steel giant soared to ₹58,553.25 crore in the first quarter of FY24 against ₹51,912.17 crore a year ago. EBITDA for Q1FY24 stood at ₹6,122 crore and EBITDA margin was stable at 10%. The stock has added 14% in the last 1 year and over 9% in 2023 YTD. Of 27 experts who participated in a MintGenie poll, 11 have ‘strong buy’ and 11 have ‘buy’ recommendations for the stock. However, 4 have ‘hold’ and 1 has ‘sell’ call on the stock.