We’re a the halfway mark for Nifty company results – 25 of the 50 have announced earnings, and the status is that earnings are not growing fast at all (just 2.5% year on year, on aggregate).
What shines out on the positive side:
- Reliance Industries has been the best performer to date with a 39% growth in EPS
- Ultratech cement did very well too with +36%
- Maruti had a good quarter with +27% year on year.
- Powergrid had a brilliant +31%.
- Indusind and Yes Bank did very well though both saw some .in equity (so EPS growth was lower than earnings growth) Kotak too had 31% higher earnings, but we should ignore that because it has merged with ING Vysya bank so you should look only at EPS growth which is just 10%.
The worst were:
- Vedanta and Cairn were in horrible share losing more than 98% of profits in Dec 2014
- Airtel saw a 22% cut (largely Africa). However Idea had a flat quarter, so Indian business too would have hurt.
- NTPC saw earnings fall 19%.
- Zee entertainment saw a 11% cut in earnings.
- Hindustan Unilever lost 22% this quarter.
While 25 companies are still left, our view is that this has been a very ordinary quarter till date. The last two quarters were negative in earnings growth (aggregated) , so at the very least we should see earnings have a positive increase compared to last year’s December.
Some of the worst is yet to hit, with results from SBI and ONGC will have a significant impact on the aggregates. They aren’t expected to have very good results.
Happy trading – and note carefully how outliers are emerging purely through good earnings growth or the lack of them!
Disclaimer: Author and family own some of the stocks above. Company owns no shares. No 1% holding by our analysts.