Q4 Results: How India Inc Fared In Fourth Quarter

The number of Nifty companies that either met or beat estimates fell to the lowest in seven quarters in the January-March period as a consumption slowdown, liquidity crunch and higher provisions by banks dragged earnings.

Earnings of 32 of the 50 companies were either in line or above forecasts in the three months ended March, the fewest since the first quarter of 2017-18, according to Bloomberg data. 18 companies failed to meet expectations, the highest in at least two years.

The combined earnings per share of the Nifty 50 constituents stood at Rs 140.50 for the March quarter. That was slightly lower than the consensus estimate by half-a-percent.

Here’s how the sectors have fared this quarter:

Auto

• Sales failed to pick up since festival season last year, higher discounts and production cuts to correct inventory dented fourth-quarter earnings.
• Brokerages remain cautious on sales in the ongoing financial year.

Consumer Stocks

• Consumption slowdown impacted sales, but earnings met estimates due to cost cuts.
• Managements remain cautious in the near term.

Oil And Gas

Financial Services

Information Technology

Metals

Pharmaceuticals

Telecom

Power

• NTPC Ltd. missed estimates due to lower plant load factor.
• Coal supply has increased but transmission losses continue to plague most of the Indian states.
• The sector continues to have stressed power assets, which could be unlocked due to Insolvency and Bankruptcy Code and Central Electricity Regulatory Commission norms.

Others