The much-anticipated fiscal fourth-quarter earnings season is officially underway, with numerous prominent companies stepping into the spotlight to unveil their financial results. Major players in the IT sector, such as Tata Consultancy Services (TCS), Infosys, and Wipro, have already shared their Q4 performance this month. Additionally, key financial institutions like HDFC Bank and Yes Bank, along with renowned consumer brands including HUL and Nestle India, are among those that have presented their figures, setting the stage for an eventful earnings season.

Upcoming Earnings Announcements

Today marks another significant day for Q4 results as a diverse array of companies is prepared to disclose their financial performance. Notable names on the list include:

• Maruti Suzuki India
• Shriram Finance
• Motilal Oswal Financial Services
• Tata Technologies
• RBL Bank
• Hindustan Zinc

These organizations are expected to shed light on their financial health, contributing to the overall narrative of this earnings season.

Market Insights and Predictions

According to Kotak Institutional Equities, the anticipated net income for the KIE universe in Q4FY25 is expected to see a modest increase of 0.7% year-on-year. However, several sectors are projected to report disappointing earnings. Key areas of concern include:

• Banks: Suffering from net interest margin (NIM) compression.
• Commodity Chemicals: Facing sluggish demand and negative operating leverage.
• Construction Materials: Experiencing weak realizations compared to last year.
• Consumer Staples: Dealing with diminishing urban demand and margin pressure.
• Oil, Gas, and Consumable Fuels: Affected by poor refining and marketing margins.

Conversely, sectors such as diversified financials, healthcare services, metals & mining, and telecommunication services are projected to showcase robust year-on-year growth.

Highlights from Major Companies

Axis Bank’s Q4 Performance

Axis Bank recently released its Q4FY25 results, aligning closely with market expectations. An analysis by Motilal Oswal Financial Services highlighted improvements in asset quality, with a notable reduction in slippages. Key figures from their report include:

• Deposits: Increased by 7% quarter-on-quarter.
• Advances: Grew by 3% quarter-on-quarter.
• C/D Ratio: Improved to 88.7%.

Despite some stability in the credit card portfolio, the bank is adopting stricter loan classification practices, which may influence future slippages. Additionally, the recent rate cuts are anticipated to keep margins in check.

HUL’s Q4 Results

On a similar note, HUL reported its Q4 results, which were largely in line with expectations, showcasing a volume growth of 1.5% year-on-year. The company’s pricing strategies reflected a modest increase of 2.7% year-on-year, despite facing high raw material costs. Some key takeaways include:

• E-commerce Contribution: Now accounts for 8.5% of sales, driven largely by quick commerce.
• Out-of-Home Business: Continues to exhibit strong double-digit growth.
• New Ventures: Launched KITKAT Professional Spread in the cocoa-based spreads category.

While challenges such as declining exports of Maggi in North America and issues with coffee exports remain, HUL is actively expanding into new markets.

Stay Tuned for More Updates

As the fiscal fourth-quarter earnings season progresses, we will continue to provide live updates and insights into the results of various companies. Make sure to stay connected for the latest news and developments in this dynamic financial landscape.