in a study of 31 Nifty50 companies said profit for the index constituents rose 12 per cent YoY against expectations of 24 per cent YoY, single-handedly driven by BFSI. Excluding BFSI, profits would have declined 1 per cent YoY against estimates of 16 per cent YoY growth.
“Heavyweights, such as
and , which posted weaker-than expected performance, dragged the Nifty50 earnings,” it said, adding that Nifty50 profits, excluding and Tata Motors, rose 9 per cent YoY against the expectations of 6 per cent growth.
Overall, Nifty EPS estimate for FY23 has been cut by 1.3 per cent to Rs 855, largely due to Reliance Industries and Tata Motors.
FY24E EPS was also reduced by 1 per cent to Rs 997 from Rs 1,006 earlier, as upgrades in
, , , were offset by downgrades in Reliance Industries and Tata Motors.
Among sectors, it was a mixed bag for IT companies. Amid heightened concerns over a weakening macro environment, management of most of the companies are not seeing any impact on the pipeline, it said, adding that a majority of the companies delivered good deal wins and highlighted a strong pipeline.
In the case of banks, said Motilal Oswal, growth momentum has remained strong over Q1FY23 propelled by healthy trends in the corporate portfolio, while growth in retail, business banking, and the SME segments continued to shine.
In the oil and gas space, the lower-than-estimated standalone O2C performance of Reliance led to the 10 per cent miss in Ebitda and PAT.
“Severe volatility in feedstock prices and high inflation concerns instigated the slowdown in global intermediates and polyester markets,” Motilal said.
In the consumer segment, sales growth during the quarter was largely fueled by price hikes, as volumes for staple companies continued to remain weak, ranging from low- to mid-single-digit growth.
For automobile makers, the topline was largely above or in-line, Motilal said.
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