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Early-bird corporate earnings show rising pain points, downgrades to spike

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MUMBAI: Early trends show that the Q4 earnings performance of most Indian companies has missed analysts' expectations, with indications that upcoming quarters may see more downgrades.

Some of the pain ahead was visible in Q4 results as higher provisions and lower sales dragged profits. Revenues of 26 Nifty companies grew 1.9%, while Ebitda (earnings before interest, taxes, depreciation and amortisation) rose an average 8.6%.

Net profits, however, fell 13.8% year-on-year in aggregate, according to analysts at Motilal Oswal Financial Services. Q4 revenues were expected to grow about 2.3%, Ebitda and net profit about 7.6% and 8.9%.

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