The majority of the Nifty 50 companies have declared their June quarter result and surprisingly they managed to surpass the analyst forecasts for the quarter.
June Quarter Results: An Overview
Till now, 33 Nifty companies have declared their June quarter results, and 20 of them surpassed the analyst expectations and they are trading on a positive note. While 4 companies stood exactly on analyst’s expectations and 9 of them have failed to hit it and they are trading on a negative note.
These numbers are in contrast with analysts as analysts were very gloomy about the coronavirus outbreak and its impact on the corporate earnings.
Commenting on this unpredicted outcome Gautam Duggad the head of research at Motilal Oswal Financial Services said: “In challenging times when demand is weak and uncertain, corporate India has employed the lever of cost reduction to alleviate the stress on bottom lines.”
“While June quarter earnings are better than expectations, the frequently localized lockdowns and rising Covid-19 cases can dent the revival,” he further added.
The following companies have surpassed the profit estimations and have performed more than the analyst expectations:
- Asian Paints
- Reliance Industries
- Bajaj Finserv
- Britannia and several others.
The following companies have failed the estimations and have posted lesser-than-estimated profit number by the analysts:
- Bharti Airtel
- Adani Ports
- Eicher and several others.
At the same time, analysts further said that the majority of the Nifty companies were able to control costs and delivered better-than-estimated profit numbers, however, this up-gradation in the earnings of the companies is likely to slow down and the companies may fail to post such numbers in the near term.
While commenting on the companies that posted lesser-than-estimated profit numbers, analysts said it is somewhat natural for such companies to report a quarterly loss during this ongoing crisis.