HDFC, SBI, Bajaj Auto shine as Q4 results meet estimates: Here's a list of key winners and losers
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Dramatic upswings and downturns marked the corporate earnings season on Dalal Street as India Inc exited the financial year 2022-23. According to Morgan Stanley, within its coverage in the Indian market, 54 per cent of the companies outperformed its earnings expectations. The global financial services major also highlighted that the post-announcement stock outperformance climbed to a six-quarter high of 43 per cent owing to the Q4 results season.
Here's how the companies under the brokerage's coverage fared in terms of revenue, earnings before interest, taxes depreciation and ammortisation (EBITDA), profit before tax (PBT) and net profit:
| Metric | Reported growth | Growth estimated by Morgan Stanley analysts |
| Revenue | 14% | 13% |
| EBITDA | 17% | 19% |
| PBT | 21% | 21% |
| Net profit | 24% | 19% |
Morgan Stanley said growth in net profit for Sensex and Nifty companies came in at 21 per cent and 18 per cent in the March quarter, beating the estimates laid out by its analysts by 10 percentage points and four percentage points respectively. "EBITDA margins expanded for the first time in eight quarters (by 51 basis points on a year-on-year basis)," it said.
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However, the EBITDA margins of the companies under Morgan Stanley's coverage remained negative, barring the energy sector. Out of these companies, the "net profit stood at 22 per cent, beating our analysts' expectations" by seven percentage points.
A diverse set of companies defied expectations with robust performances, while others fell short of market predictions, according to the brokerage. The spotlight, however, is on those companies that significantly contributed to Nifty’s earnings growth, while others lagged behind.
Major positive surprise: Tata Consumer, Axis Bank, Bajaj Auto, Asian Paints, HDFC, SBI, M&M, JSW Steel and Tata Steel
According to Morgan Stanley, the nine companies brought a "major surprise" in the Nifty universe, emerging the stellar performers of the quarter. Their strategic effectiveness and resilience underscored an optimistic financial environment in India, despite global economic uncertainties.
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Major negative surprise: Grasim, UPL, Britannia, Cipla, Apollo Hospitals and Divi's Labs
The six companies brought a "major negative surprise", underscoring the challenges in the current market environment, according to Morgan Stanley.
Notably, SBI, Tata Motors, BPCL, Reliance Industries and Axis Bank were among the biggest contributors to the Nifty earnings growth, asserting their market dominance. Conversely, Hindalco, Coal India, Grasim and UltraTech Cement were among the biggest drags.
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