Nifty Q3 Scorecard: Profit Rises 15.8% As More Companies Beat Estimates

Cumulative profit grew 15.87% for Nifty 50 companies as compared with the year-ago period, as fewer companies met analysts' consensus estimates during the third quarter of fiscal 2024.

Among the constituents of NSE's benchmark index Nifty 50, only 18 reported results in line with consensus estimates as reported by Bloomberg, as compared with 23 in the second quarter of the fiscal.

Companies with primary activities involved in the automobile and auto components sector, as classified by the NSE, recorded the most number of beat against the street's estimates, with four of six in the index surpassing expectations for their bottom-line.

Notably, Tata Motors Ltd. more than doubled its profit for the period, as compared with the year-ago period, while Maruti Suzuki India Ltd., Bajaj Auto Ltd. and Eicher Motors Ltd. also beat analysts' consensus estimates.

Those in the financial services sector reported the most number of in-line results, as five out of 10 met profit estimates, while four reported a 'miss'. Bajaj Finance Ltd., State Bank of India, and SBI Life Insurance Co. were among those which failed to meet analysts' expectations.

Three of five companies in the fast-moving consumer goods sector missed estimates, namely Hindustan Unilever Ltd., Nestle India Ltd., and Tata Consumer Products Ltd.

Operating profit for the companies included in the benchmark index (ex-financials) fell over 30% year-on-year, while net profit for the same companies grew by 14.1%.

The top line for ex-financial companies rose by 5% as compared with the same period last year.

• The biggest jump in profit for the period was reported by JSW Steel Ltd., which reported a fivefold increase in its bottom line, driven by a 550 bps expansion in its operating margin.

• UPL Ltd. was the only constituent which reported a loss for the period along with the biggest decline in its top line as global headwinds persisted in the chemicals space.

• Adani Enterprises Ltd. over doubled its operating profit and bottom line for the period on the back of higher operating margin.

• Grasim Industries Ltd. beat analysts' estimates despite an over 41% slump in its profit. Continued weakness in global caustic soda prices coupled with oversupplied domestic market impacted chemicals segment, the company said.

• SBI Life Insurance missed estimates despite the highest increase in its top line among the index constituents at a 45.7% rise YoY, closely followed by 44.5% YoY increase for Adani Ports & SEZ Ltd.