Many Nifty 50 companies beat analyst expectations

Mumbai: Majority of the companies of the 50-share Nifty index that have declared their June quarter results have managed to surpass analyst expectations for the period.

Out of the 33 Nifty companies that have declared their June quarter results, 20 have surpassed profit estimates. Results of four companies have met analysts’ estimates while nine have missed it. The results show analysts were far more pessimistic about the impact of the lockdowns on corporate earnings.

While SBI, Asian Paints, UltraTech Cement, L&T, Reliance Industries, Bajaj Finserv, Britannia, among others, have posted better-than-estimated profit number, Bharti Airtel, Maruti, ONGC, Adani Ports, Cipla and Eicher are among the few who have missed it. Though majority of the companies were able to control costs to deliver higher margins, the earnings upgrades are unlikely in the near term, said analysts.

“In challenging times, when demand is weak and uncertain, corporate India has employed the lever of cost reduction to alleviate the stress on bottomlines,” said Gautam Duggad, head of research at Motilal Oswal Financial Services. “While June quarter earnings are better than expectations, the frequent localised lockdowns and rising Covid-19 cases can dent the revival.”