Indian corporate earnings recorded healthy growth, with many beating street estimates in the quarter ended March 2023, according to Nomura and Jefferies.
The aggregate March quarter earnings of 127 companies analysed by Nomura rose 8% year-on-year and were 4% above the Bloomberg consensus estimates, Nomura said. Net earnings grew 13.3% year-on-year after adjusting for extraordinaries and were 11.8% ahead of the estimates, it said.
The companies Jefferies covered during the March quarter, excluding metals and oil and gas, reported 25% year-on-year earnings growth, the brokerage said.
Domestic companies, excluding oil and gas, metals, and exporters, posted 30% year-on-year growth in earnings, according to Jefferies. Revenue and Ebitda in the analysed universe grew by 16% and 18% year-on-year, respectively.
“Domestic companies’ earnings rose … margins rose year-on-year, and revenue growth remained at mid-teen,” Jefferies said.
Aggregate Ebitda grew at a slower pace at 5.7% year-on-year but still managed to beat consensus estimates by 2.7%, according to Nomura. The brokerage reported Ebitda growth lagging revenue growth at 11.5% for this group of companies, as Ebitda margin declined annually across most commodity-consuming sectors, except autos and real estate.