Nifty Q2 Scorecard: 'Misses' Overtake Even As 'Beats' Rise

The cumulative profit of Nifty 50 constituents rose 8.3% year-on-year but fell 3.3% sequentially. During the period, cumulative revenues of Nifty 50 rose 3.3% from a year ago, while operating profit of the non-financial constituents showed little change.

Most companies in the benchmark index reported results below street estimates, while 17 performed within expectations.

The number of companies that beat estimates rose to 15, while those that met them fell to the lowest in at least the past five quarters.

Companies in the automobiles and auto components space led the disappointment, with three out of six reporting results below their consensus estimates.

Of the 11 companies in the financial services sector, three reported bottom-line figures below estimates, namely IndusInd Bank Ltd., HDFC Life Insurance Co., and SBI Life Insurance Co.

Quarterly profit for Adani Enterprises Ltd. jumped nearly sixfold, the most out of any index constituent, while operating profit rose 55%.

Among companies whose results are compared against the year-ago figures, Hindalco Industries Ltd. led the second largest increase in profits by 78%, led by a significant uptick in revenue from the aluminium downstream and upstream segments at 20% and 15%, respectively.

Despite a 42.5% uptick in profits against the year-ago period, Trent Ltd. failed to meet the street's estimates.

Noel Tata, the company's chairman, highlighted weak consumer demand and seasonality as headwinds for retail businesses.

Companies in the construction materials space—UltraTech Cement Ltd. and Grasim Industries Ltd.—reported a significant decline in profitability, notably from a decline in domestic grey cement sales realisations, which fell 8.4% year-on-year.

Mahindra & Mahindra Ltd. was the only index constituents from the auto sector which surpassed estimates with a 13% rise in profits, led by healthy volumes, and an increase in market share across the SUV, LCV, tractor, as well as the electric three-wheeler segments.

Bajaj Auto Ltd. performed as much as 10% below their estimated bottom-line figures led by a one time impairment in profitability.

This was due to increase in provision for deferred tax on account of withdrawal of indexation benefit on long-term capital gains on investments in debt mutual funds.

Bharat Electronics Ltd., which was added to the index during the latest semi-annual rejig, and the only constituent belonging to the capital goods space, reported a strong profit during the quarter, surpassing estimates.

Bottom-line for the company grew 38.4% against the year-ago period, beating estimates on account of better-than-expected margins, as highlighted by multiple brokerages such as Jefferies and Motilal Oswal.

Asian Paints Ltd. reported a 43.6% decline in profits for the quarter, due to a decline in volumes, which fell for the first time in 12 years (ex-Covid) despite price cuts.

The paint-maker also lost market share to other incumbents such as Akzo, Indigo and Berger, as highlighted by ICICI Securities.

Titan Co. faced a 23% decline in profits, attributable to a temporary hit to margins due to specific challenges during the quarter, as highlighted by the management in the earnings conference call.

This included a one-time customs duty loss, a lower mix of studded jewellery and reduced demand for large-carat solitaire diamonds due to international supply pressures.