- Wealth PMS (50L+)
In what seems to be quite a terrible performance, The 30 Sensex company results, for FY15, show what a disaster these results are. On a consolidated basis, the aggregate profits are lower by 12% compared to last year. Even if you remove the two big losers (non-cash items took a big toll on TataSteel and Sterlite/Vedanta results), we are still at a profit growth of just 0.3%.
This is for the full year. Airtel did really well, and Sun Pharma also had great annual results (though their issues with the Ranbaxy acquisition are ahead of them, and were visible partially in the last quarter). Dr. Reddy’s, though, had a flat year, and Cipla went to -15%.
Banks provided a +20% on profits, even though some restructuring issues remain at ICICI Bank and SBI.
Auto was a mixed bag. Maruti was fabulous at +33% but Tata Motors had crappy Q4 results which gave it a flat year. M&M has had a lousy year with -33%. In 2 wheelers, Bajaj Auto was -10%, but Hero Motocorp balanced it out with +10%.
The IT majors have had a rough ride too. TCS hasn’t been able to grow profits at all (though there was a potential one-time bonus), Infy and Wipro were at +10%.
Oil and Gas suffered as prices crashed worldwide.
Metals were the worst performers. Tata Steel had a huge loss even though there were non-cash items. Hindalco dropped profits 60%. Vedanta (which isn’t metals, really, but ore) saw a massive loss on the Cairn acquisition.
Overall, lousy results. There are surprises like BHEL and NTPC on the under, even though we all knew this quarter wasn’t going to be great. At this point, however, it’s incredibly difficult to align with the 20+ P/E the market is willing to pay for these earnings; and the drop doesn’t seem to be the end.