During the January-March quarter of FY23, the Nifty50 companies delivered a healthy performance, with some even exceeding analysts' estimates. Among the standout sectors was banking with its impressive performance, driven by the rise in net interest income, significant growth in advances, expansion in net interest margins, and fall in provisions.
Q4 earnings review: 15 Nifty50 companies posted net profit growth of over 40%; here's the full list
According to Trendlyne, 36 companies in the Nifty50 index reported positive net profit growth. Among these, 15 companies have reported more than 40% jump in their net profit.
In addition, the auto companies showcased robust performance during the quarter, led by a surge in domestic sales, a decline in commodity prices, easing supply chain issues, and a rise in replacement demand.
The FMCG sector also experienced a notable uptick in performance, with companies benefiting from a significant drop in raw material costs and a surge in demand. Additionally, a decline in crude oil prices provided a boost to oil marketing companies (OMCs), enabling them to deliver excellent numbers during the quarter.
According to Trendlyne, 36 companies in the Nifty50 index reported positive net profit growth. Among these, 15 companies have reported more than a 40% jump in their net profit.
Another solid quarter
Private sector lender IndusInd Bank reported a stellar set of numbers for the March quarter, with its net profit surging 46% YoY to ₹2,043 crore, crossing the ₹2,000 mark for the first time ever.
For overall FY23, the net profit of the lender expanded by 60% to ₹7,390 crore from ₹4,611 crore recorded in FY22.
Likewise, the country's largest lender, State Bank of India (SBI), recorded its highest-ever quarterly net profit during the reporting quarter at ₹16,695 crore, a jump of 83% YoY, ending FY23 with a total net profit of ₹50,232 crore, an increase of 58.60% over FY22's net profit of ₹31,676 crore.
Powered by strong sales
Tata Motors delivered an impressive performance in Q4, posting a consolidated net profit of ₹5,408 crore, a significant improvement compared to a net loss of ₹1,032.84 crore in Q4 FY22.
The company's wholly-owned subsidiary, Jaguar Land Rover (JLR), reported a YoY volume growth of 24% to 94.7k in Q4. The company's Q4 EV volumes (including exports) reached a record high of 16.0k units, representing a YoY increase of 70%.
The country's largest automaker, Maruti Suzuki, posted a 42% YoY jump in its consolidated net profit to ₹2,671 crore for the fourth quarter of FY23.
In the January-March period, the sales in the domestic market stood at 4,50,208 units, up 7.1% against Q4 FY22, while the sales in the export market stood at 64,719 units compared to 68,454 units in the March quarter of FY22.
Two-wheeler major Eicher Motors achieved a net profit of ₹906 crore for Q4FY23, a growth of 49% YoY. The sales volume of Royal Enfield, the flagship motorcycle brand of the company, increased by 18% YoY to 2,14,685 units in March quarter.
Fall in RM prices boosts profit margin
Britannia Industries, one of the country’s leading food product companies, reported a 47.61% rise in net profit to ₹558 crore in Q4 FY23. The cost of raw materials consumed came in lower at ₹2,215.9 crore in Q4 FY23 as compared to ₹2,364.7 crore in Q3 FY23.
The Wadia group company registered a net profit of ₹378 crore in the corresponding quarter of last year.
Significant decline in input prices, such as palm oil, laminates, and corrugated boxes, which fell by 14%, 9%, and 16% YoY, respectively, helped. Additionally, the company's cost efficiency measures have resulted in a strong performance in the March quarter.
For the financial year 2022-2023, the company's profit after tax grew by 28.6% YoY to Rs. 1,951 crore.
Driven by low crude oil prices
BPCL, the state-owned oil marketing company, posted a 168% YoY and 293% QoQ surge in its Q4FY23 consolidated net profit to ₹6,870 crore. In the earlier quarters of FY23, BPCL had faced challenges due to holding petrol and diesel prices despite the rising crude prices, resulting in significant net losses.
However, in the recent quarter, the company benefited from the decline in crude prices, which helped in lowering operating expenses to ₹1,06,958 crore, indicating a quarter-on-quarter decrease of 6.93%.
Fueled by surge in 4G customer base
Bharti Airtel, one of India’s leading telecommunications services providers, witnessed a robust surge in its consolidated net profit to ₹3,005.6 crore, finishing FY23 with a total net profit of ₹8,346 crore, up 96.14% over FY22's net profit of ₹4,255 crore.
The average revenue per user came in at ₹193, driven by the addition of higher numbers of 4G and postpaid subscribers.
During the March quarter, the 4G customer base jumped to 22.41 crore from 20.84 crore in the same quarter of last year. In the preceding December quarter, the company added 6.2 million to its 4G customer base.
Strong sales across key markets lift net profit
Dr. Reddy's Laboratories witnessed a remarkable growth in its consolidated profit after tax (PAT), recording a multifold increase of 996% to reach ₹959.2 crore. This substantial rise can be attributed to a low base effect from the same quarter of the previous year, where the PAT stood at ₹87.5 crore.
Cipla, another prominent pharmaceutical company, experienced a 45% surge in its consolidated net profit for Q4, amounting to ₹526 crore, driven by robust sales in both the domestic market and the US.
Meanwhile, other companies including Asian Paints, Adani Enterprises, Apollo Hospitals Enterprise and Titan Company also witnessed a surge in their net profit between 40 and 140% during the March quarter.
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