Nifty Q3 Scorecard: Profit Rises 19%, One Sector Stands Out

Cumulative profit rose by 19% for Nifty 50 companies (ex-financials), which have released their results so far for the third quarter of fiscal 2024.

Top line for the companies grew by 5.46%, as compared with the year ago period, while bottom line growth surpassed this, signalling an increase in profitability.

Of the 41 companies which have released their quarterly results so far, 14 reported results in line with analysts' estimates, 14 delivered results below estimates, and 13 beat estimates.

Most companies in the financial services sector reported results in line with estimates, with five of the 10 companies in the index meeting analysts' expectations, including Axis Bank Ltd., IndusInd Bank Ltd. and Kotak Mahindra Bank Ltd.

Four companies' results missed estimates, including Bajaj Finance Ltd., State Bank of India, and SBI Life Insurance Co.

ICICI Bank Ltd. was the only constituent in the sector which beat analysts' estimates in its bottom line.

All companies in the automobile and auto components sector delivered a positive surprise in their earnings.

Tata Motors Ltd.'s profit doubled year-on-year. The Tata Group company, along with Bajaj Auto Ltd. and Maruti Suzuki India Ltd., beat earnings estimates by analysts polled by Bloomberg.

More companies in the information technology and fast-moving consumer goods sector failed to meet analysts' expectations, than those which either met estimates or beat them.

Among IT companies, three of six companies in the Nifty 50 missed estimates, including Infosys Ltd., Tech Mahindra Ltd., and Wipro Ltd.

Three of five FMCG companies missed estimates, including Hindustan Unilever Ltd., Nestle India Ltd., and Tata Consumer Products Ltd.

UPL Ltd., the only chemical sector constituent of the NSE benchmark index, was also the only one to report a loss so far.

Of the 31 non-financial companies, 24 reported a rise in their earnings, while seven reported a decline during the quarter.