Q4 Results Review: 5 cos including HDFC Bank, TCS contribute 75% to Nifty earnings growth; see top upgrades, downgrades

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These five companies contributed 75 percent to the incremental YoY accretion in earnings. Conversely, Tech Mahindra, Reliance Industries, and Wipro contributed adversely to Nifty earnings, it stated. As of May 4, 2024, 28 Nifty stocks posted notable growth across key financial metrics, surpassing initial estimates.

These companies reported a year-over-year (YoY) increase in sales, EBITDA, profit before tax (PBT), and profit after tax (PAT) of 10%, 15%, 11%, and 13%, respectively. These figures were against expectations of 13%, 9%, 10%, and 8%, indicating strong performance within these companies. Furthermore, MOSL pointed out that only five companies within the Nifty reported profits below expectations, while 10 recorded a beat, and 13 registered in-line results so far.

Among the Nifty constituents, companies including Reliance Industries, HDFC Bank, Coal India, Axis Bank, Kotak Mahindra Bank, Ultratech Cement, Bajaj Auto, Tech Mahindra, Nestle, and SBI Life Insurance exceeded profit estimates. Conversely, HCL Technologies, LTIMindtree, Titan, and HDFC Life Insurance missed profit estimates for Q4FY24. Nifty EPS stable: MOSL's Nifty EPS estimates for FY25/FY26 have been stable so far at ₹1,133/ ₹1,315 (vs ₹1,132/ ₹1,317).

The brokerage noted that the earnings growth was fueled by the domestic cyclicals, such as BFSI and Auto, as expected. BFSI clocked a 22 percent YoY growth, while Auto reported a growth of 38 percent YoY (in line with an estimate of +38 percent), driven by Maruti Suzuki and Bajaj Auto. In contrast, the aggregate performance has been dragged down by the O&G sector, which posted a 20 percent earnings decline (IOCL’s profit plunged 52 percent YoY).