As the earnings season for the fiscal fourth quarter gains momentum, major players like Tata Consultancy Services (TCS), Infosys, and Wipro have already shared their Q4 results. This week promises to be particularly thrilling, with over 80 companies set to unveil their financials for Q4FY25. Notable names on the roster include HCL Technologies, Tech Mahindra, Maruti Suzuki India, and Hindustan Unilever, among others. Investors and analysts alike are keenly awaiting insights from these reports to gauge market trends.

Earnings Anticipation for Major Companies

The upcoming week is packed with significant earnings announcements that could shape market sentiment:

• April 22

  • HCL Technologies: Expected to show a slight revenue decline of 0.7% on a constant currency basis, driven by seasonal dips in the products sector. The services segment may grow by 0.9%, with a net new deal total projected at $2.2 billion.
  • Tata Communications: Forecasts indicate a revenue growth of 2.6% QoQ, with key focus areas including the digital business trajectory and updates on non-core subsidiaries.

• April 23

  • LTIMindtree: Anticipated revenue growth may be affected by weaknesses in the hi-tech and BFSI sectors, with total contract value (TCV) of deals expected around $1.4 billion.

• April 24

  • Mphasis: Predicted revenue growth of 3.2% QoQ, aided by the conclusion of furloughs and new deal ramp-ups.
  • Nestle India: Analysts expect a 5.4% YoY revenue increase, driven by strong performance in domestic markets despite challenges from elevated commodity prices.
  • Axis Bank: Revenue projections suggest an 8% YoY growth in loans, with concerns about slippages in the retail segment.
  • Hindustan Unilever: Revenue growth is anticipated to be modest at 2% YoY, with flat volume growth expected.
  • Tech Mahindra: Forecasted to see a decline of 0.7% in constant currency revenue, with deal wins in the range of $600-800 million.

• April 25

  • Maruti Suzuki India: Expected revenue growth will be supported by volume increases and higher realizations, though margins may contract slightly due to rising expenses.
• April 26
  • IDFC First Bank: Projected NII growth of 2.5% QoQ, but overall profit after tax (PAT) may dip due to higher provisions and lower NII.

Market Sentiment and Industry Trends

According to insights from Nuvama, the earnings challenges observed throughout the first nine months of FY25 are likely to persist into Q4. Key observations include:

• Top-line growth (excluding oil marketing companies) is expected to remain sluggish at around 6% YoY, marking the eighth consecutive quarter of subdued growth.
• Margins are under pressure, resulting in a mere 1% profit growth forecast.
• Specific sectors such as cement, FMCG, and autos may face profit weaknesses, while sectors like metals, chemicals, and pharma are projected to perform strongly.

Final Thoughts

With so many influential companies set to report their Q4FY25 results this week, market participants are poised for a whirlwind of insights that could impact investment strategies. As the financial landscape shifts, staying informed on these earnings announcements will be crucial for navigating the evolving market dynamics.