The June quarter earnings season has now come to an end and according to brokerage house Phillip Capital, the earnings were in-line with expectations.
"Revenues were slightly above the expectations, for Nifty. Strong earnings growth (yoy) was seen in Retail, Automobiles, NBFCs, Cap Goods and Oil & Gas while substantial contraction was recorded in Infrastructure, Power, and Cement sectors," analysed the brokerage.
Since last quarter, the brokerage noted that consensus EPS downgrades were more prevalent than upgrades for FY23, FY24 and FY25. For FY23, FY24 and FY25 - 30, 28, and 26 companies were downgraded in Nifty, revealed Phillip Capital.
For FY23 and FY24, as per the brokerage, Metals & Mining, Pharma and IT saw more downgrades while Automobiles and Industrials were majorly upgraded.
"Of the 49 Nifty companies (ex-Tata motors), 19 beat and 26 in-line with Revenue estimates, while 18 and 24 stocks exceeded EBITDA and Earnings expectations, respectively; 4/18/19 companies missed expectation on Revenue/EBITDA/Earnings," said the brokerage.
For FY23 the brokerage significantly downgraded Tata Motors, BPCL, Shree Cement, and JSW Steel in the Nifty50 index, while higher upgrades were seen in ONGC, L&T, M&M and Coal India.
In Q1, Tata Motors reported a widening of consolidated net loss at ₹5,006.60 crore compared with ₹1,032.84 crore in March and ₹4,450.92 crore in the year-ago quarter. However, its consolidated revenue for the quarter rose 8.68 percent YoY to ₹71,227.76 crore from ₹65,535.38 crore in the year-ago quarter.
Meanwhile, BPCL posted a loss of ₹6,148 crore in the April-June quarter (Q1Y23). The loss came on the back of a freeze on retail prices of petrol and diesel despite the rise in crude oil prices. The firm had reported a profit of ₹3,214 crore in the same quarter last year.
Shree Cement's profit also fell 55.62 percent YoY to ₹279.50 crore for the June quarter compared with ₹629.90 crore in the same quarter last year. Whereas, JSW Steel also reported an 85.8 percent decline in its consolidated net profit to ₹838 crore for the April-June quarter (Q1FY23). The company had clocked ₹5,904 crore net profit in the year-ago quarter (Q1FY22).
Among stocks that were upgraded, India's top oil and gas producer ONGC reported a tripling of net profit in the June quarter as it earned record prices before the government slapped a tax on windfall profits arising from a global rally in energy rates. Its standalone net profit at ₹15,205.85 crore in Q1, compared to ₹4,334.75 crore, or ₹3.45 a share, in the same period a year back.
L&T, on the other hand, reported a 45 percent YoY rise in consolidated net profit at ₹1,702.07 crore for the June quarter compared with ₹1,174.44 crore in the corresponding quarter last year. M&M also saw a rise of 67 percent in net profit at ₹1,430 crore compared with ₹857 crore in the corresponding quarter last year.
Meanwhile, Coal India said its consolidated net profit shot up 178 percent to ₹8,834 crore for the first quarter of 2022-23 fiscal on the back of higher sales. The miner posted a net profit of ₹3,174 crore in the same quarter last year.
Further, in NSE, the brokerage upgraded Indian Bank, Allcargo Logistics, JSPL, SAIL and NMDC to buy, while it downgraded Wipro, KEC, Voltas, Sanghi and Teamlease to neutral.
Reviewing the earnings, Phillip Capital noted that Nifty's Revenue and PAT stood in line with estimates, at 37 percent and 20 percent.
"For Nifty, ex-financials, Revenue and PAT grew by 39 percent and 15 percent, respectively versus expectations of 37 percent and 15 percent. The earnings beat was seen in Pharma, Metals & Mining and Retail; Missed for Telecom, Automobiles, Oil & Gas and Infrastructure," it said.
Revenue and EBITDA beat was seen on an average for 42 percent of the companies in Nifty50 while 36 percent of the companies in Midcap100. While earnings miss was seen on an average for 40 percent of the companies and earnings in-line was seen on an average 53 percent of the companies in Nifty50, it added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
