Debt Mutual Fund Strategy
Classification - Restricted
Q2FY23 earnings season started on mixed note... Topline growth remained steady but margin impact has led to weak profitability
Net sales
EBITDA
YoY growth in %
Q2FY23
Q1FY23
Q2FY22
Q2FY23
Q1FY23
Q2FY22
Q2FY23
Rep PAT
Q1FY23
Q2FY22
Cyclicals
Auto & Auto Anc
38.9
37.6
11.9
100.3
65.3
(29.5)
51.7
33.7
(3.3)
BFSI
17.3
12.7
6.4
44.3
41.1
(6.4)
46.8
58.6
15.3
Capital Goods
17.2
65.1
32.8
(5.9)
106.4
17.3
(4.1)
127.3
17.3
Cement & Products
12.8
21.9
10.2
(53.0)
(22.6)
1.6
(71.8)
(27.3)
7.0
Metal & Mining
25.8
34.9
50.9
(42.3)
(16.1)
73.2
(69.9)
(27.5)
186.7
Oil & Gas
46.2
73.7
55.8
(7.4)
24.9
27.7
(32.1)
2.9
29.1
Power
36.8
45.4
16.8
19.5
15.3
4.7
6.1
31.5
Realty
(10.9)
65.4
16.1
(10.1)
74.1
50.2
17.4
133.5
Others
(13.8)
8.0
55.6
(16.9)
8.2
71.4
(8.0)
11.3
7.4
95.7
74.6
Growth & Defensive or Non-Cyclical
Chem & Fertilizers
38.6
32.9
14.8
75.7
63.5
20.3
122.7
78.8
68.6
FMCG & Retail
20.4
37.7
18.8
16.6
35.5
12.3
25.7
36.0
10.3
11.1
4.8
14.8
22.6
5.9
10.3
6.3
52.1
15.8
19.8
19.3
19.2
9.7
4.2
16.5
7.4
1.9
18.8
Telecom
12.2
2.8
79.2
(16.7)
(25.8)
135.4
(29.5)
(40.9)
77.4
Ecomm
31.9
23.7
11.8
(30.8)
(34.3)
(0.1)
(16.8)
(46.9)
17.8
Nifty 200 Index
Grand Total
29.1
38.8
26.9
13.1
21.1
Ex BFSI
33.2
47.8
35.8
(4.5)
9.3
11.6
25.2
1.7
(16.7)
17.5
27.6
2.7
33.4
Source: Capitaline
Healthcare
IT
■ Q2FY23 results have seen stable topline growth, but
margins pressure in many sectors has been seen impacting
the profit growth.
Earnings expectations could see too could also see
marginal downgrades post the result season. Key alpha
sectors seem to be Banking, Auto, Infra, while Pharma
seems to be emerging out of its slumber.
■ So far 84 companies in Nifty 200 index have reported their
quarterly earnings as of 30 October 2022, and the net sales
for these companies grew by 29.1% YoY, EBITDA grew by
13.1% YoY and PAT grew by 1.7% YoY in Q2FY23.
■ On the margin front, key user industries like Cement, IT,
Power and Metals & Mining witnessed moderation due to
sharp rise in raw material and wage costs during the
quarter.
Data as of 30 October 2022
◉
Going forward, strong corporate balance sheets, high household savings and government's focus on infrastructure development and job creation is likely to
drive capex demand and thereby push incremental consumption demand as well in medium term, which would be positive for corporate earnings.
17
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