CIL, AXIS, MARUTI, HDFC BANK: NIFTY COS WITH HIGHEST FY25 EPS UPGRADES POST Q4 RESULTS
Five companies namely HDFC Bank Ltd, Coal India Ltd, ICICI Bank Ltd, Maruti Suzuki India Ltd and Tata Consultancy Services Ltd (TCS) contributed 75 per cent to the incremental year-on-year (YoY) accretion in Nifty earnings so far, data compiled by Motilal Oswal Securities suggest. On the other hand, Tech Mahindra Ltd, Reliance Industries Ltd and Wipro Ltd contributed adversely to Nifty earnings, data showed.
A total of 28 Nifty companies, which have declared March quarter results, reported 13 per cent jump in earnings against expectations of 8 per cent YoY growth. Only five companies within the Nifty reported profits below Motilal's expectations, while 10 recorded a beat, and 13 registered in-line results so far.
Top FY25 upgrades included Coal India (15 per cent), Axis Bank (3.8 per cent), Maruti Suzuki India (2 per cent), Bajaj Auto (1.3 per cent), and HDFC Bank (1.2 per cent). Top FY25E downgrades included Bajaj Finance (down 7.8 per cent), HCL Tech (down 6.7 per cent), LTI Mindtree (down 6 per cent), Titan (down 5.7 per cent), and Infosys (down 5.7 per cent).
Among sectors, earnings growth for private banks has remained healthy, with Axis Bank and Kotak Mahindra Bank Ltd reporting better-than-expected earnings. However, HDFC Bank, Axis Bank, Kotak Bank, ICICI Bank IndusInd Bank registered a mixed margin performance.
In the case of automobiles, 4QFY24 results so far have been in line with Motilal's expectations. The growth has largely been driven by healthy volume growth across most of the segments, ex-CVs, better product mix, lower commodity costs, and operating leverage.
"We believe that margin pressures will persist in the upcoming quarters due to the expected recurrence of certain costs," it said.
In the IT sector, the Q4FY24 results for Tier-1 companies have remained weak so far due to lower-than-expected growth, weak demand, and the re-scope of contracts, as well as project cancellations.
"Discretionary spending show no signs of picking up, and the near-term outlook remains bleak. The guidance for FY25 came in lower than expected, even with muted expectations," the brokerage said.
In the oil & gas sector, the sector has reported mixed 4QFY24 results so far.
"RIL beat our estimates primarily due to a strong O2C performance, while IOCL fell short of our earnings estimates owing to a weaker-than-estimated refining margin," Motilal Oswal said.
Net-net, Reliance Industries, HDFC Bank, Coal India, Axis Bank, Kotak Mahindra Bank, Ultratech Cement, Bajaj Auto, Tech Mahindra, Nestle, and SBI Life Insurance exceeded Motilal's profit estimates. HCL Technologies, LTIMindtree, Titan, and HDFC Life Insurance missed its profit estimates for 4QFY24.
2024-05-07T02:20:23Z dg43tfdfdgfd
