During the October-December quarter of FY23, the Nifty 50 companies delivered a mixed performance, with some companies managing to outperform their expectations while others missed the mark.
According to Trendlyne, 34 companies in the Nifty50 index reported positive net profit growth, while 13 delivered negative profit growth, and three finished the third quarter with neutral profit growth. The aggregate revenue growth of 49 companies, which have announced their Q3 numbers so far, stands at 18.7% YoY, and the total operating profit of 49 firms grew by 12.4% YoY.
Overall, 11 companies in the Nifty50 Index reported more than 50% growth in their net profit in Q3FY23, with Tata Motors being at the top with a YoY growth of 295%, followed by Britannia Industries, Maruti Suzuki, Bharti Airtel, and DR Reddy's Laboratories with 152%, 130%, 92%, and 75.37%, respectively.
Other companies including, Coal India, Nestle India, Eicher Motors, SBI, IndusInd Bank, and Axis Bank also reported more than 50% growth in their net profit in Q3FY23.
The banking sector was the clear winner, with several banks reporting their highest-ever quarterly net profit in the December quarter. The public sector banks, in particular, extend their strong show, driven by lower provisions and higher net interest margins.
The country's largest lender, State Bank of India (SBI), recorded its highest-ever quarterly net profit during the reporting quarter at ₹14,205 crore, a jump of 68.46% YoY compared to a net profit of ₹8,432 crore for the same period last year.
Similarly, India's largest private lender, HDFC Bank, reported a 19.9% YoY jump in net profit to ₹12,698 crore on the back of low provisions and an expansion in net interest margins. The bank had posted a net profit of ₹10,605 crore in the preceding quarter.
In Q3 FY23, 12 PSBs posted robust profit growth of 65% YoY to ₹29,175 crore. Sequentially, the net profit rose by 13.58%. Similarly, private banks posted a 31.7% YoY rise in their net profit to ₹35,166 crore.
Indian IT biggies also delivered a strong performance in the December quarter and also offered clarity on the demand scenario, which is not as negative as previously anticipated.
Brokerage firm, Motilal Oswal said the IT firms reported in-line quarterly numbers despite the challenging macro environment and easing supply headwinds.
Tata Consultancy Services (TCS), the country's largest IT company, posted a strong performance, with its net profit rising 11% year-on-year to ₹10,883 crore. Since its Q3 earnings announcement on January 9, the stock has risen nearly 7% to Rs. 3,501 apiece.
In addition, the auto industry put out a good showing, with several companies reporting increases in sales. Maruti Suzuki reported a 130% jump in its net profit in the third quarter at ₹2,391 crore, beating analyst estimates.
The company's robust performance was driven by higher sales, a strong margin performance, a better product mix, and lower input costs. The auto major had reported a profit of ₹1,041.8 crore in the same quarter last year.
Reliance Industries, the country's largest company by market value, reported a 15% drop in its net profit to ₹15,792 crore in Q3FY23, in line with analysts' estimates.
The company margins were hit by the high finance cost in the reporting quarter, which soared by 36.4% to ₹5,201 crore, additionally other expenses were up by Rs.5,421 crore.
Telecom major Bharti Airtel reported great numbers for the December ending quarter. The telco posted a 92% year-on-year (YoY) rise in its consolidated net profit to ₹1,588 crore, aided by better realisation, strong 4G customer additions, and overall strong growth across businesses. Its net profit in the year-ago period stood at ₹830 crore.
On the other hand, FMCG major Britannia Industries delivered a 152% YoY increase in its consolidated net profit to ₹932 crore for the December quarter compared to ₹369 crore in the year-ago quarter. Sequentially, the net profit was up by 89%.
Following a strong performance in the third quarter of the current fiscal year, the company's shares reached an all-time high of ₹4,596 apiece on February 2.
On the flip side, major steel companies posted a sharp drop in their earnings, owing to higher energy costs and slowing demand. Steel major Tata Steel reported a consolidated net loss of ₹2,502 crore on the back of higher expenses. The company had posted a net profit of ₹9,598 crore in the year-ago period.
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