8 mins read . 25 May 2023
Normally, the annual results for March can be filed by the end of May, while quarterly numbers have to generally filed within 45 days. There is a little over a week to go for the full set of results for Indian companies to be out. As of date, out of the 4,200 listed companies on the BSE, over 1,600 companies have announced their results. However, if you combine the Nifty 50 and the Nifty Next 50, more than 95% of the companies have announced numbers. If you look at in terms of market cap of the BSE and NSE overall, nearly 80% of the market is already covered, so in value terms the results should be representative.
It is always best to begin with the macro picture. Here are some of the macro highlights for the March 2023 quarter.
In any quarter, there are bound to be some sectors that underperform and there were a number of sectors underperforming in the current quarter also. Here are some sectors that did not live up to expectations, or were hit by structural issues.
Essentially, it was the export trade driven sector that saw pressure on profits and also on the top line.
There were a number of stars in the quarter across financials, capital goods and FMCG related stocks. Here is a quick summary. That was the good news for the quarter.
Apart from these four heavyweight sectors, there were also other sectors that did very well. For instance, the contact intensive sectors like aviation and hotels did very well. However, this was on the back of a very low base, so the growth does look magnified. There was revenge consumption in most of these contact-intensive sectors.
Overall, the hits were more than the misses in Q4FY23, and in terms of market cap weight, it was only the IT sector that has done below par in the fourth quarter. But, the real summary of the quarter is in the gross profit and the net profit performance. While the growth is visible on a yoy basis, the real growth is seen on a sequential basis. That is what has made this quarter better; and a source of optimism too. Overall, it has been a positive quarter for Indian corporates, notwithstanding the headwinds. Input costs have come down, rural sales have picked up, the capex cycle is looking up and interest costs and solvency risks are topping out. That is surely a good position to be in.
Content Source: Money Control and BSE Filings
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