Nifty 50 firms post strong Q2 results, led by cyclicals

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Nifty 50 firms post strong Q2 results, led by cyclicals
Credit: © Reuters.

A total of 29 Nifty 50 companies have reported their Q2FY24 earnings, showcasing a robust 35% increase in consolidated net profit and over 9% rise in gross sales year-over-year (YoY). The data, compiled by ICICI Securities (NS: ICCI ), indicates no significant negative surprises this earnings season, with cyclicals driving profit growth.

Reliance Industries (NS: RELI ) (NSE:RIL) posted a 27.37% rise in consolidated net profit and a 1.2% YoY increase in gross sales. Systematix Institutional Equities upgraded RIL to 'Buy' following the Q2 results, citing an 11% correction since Q1FY24 result and potential upside triggers such as tariff hike post-election and revival in petrochemical margins.

Infosys (NSE:NS: INFY ), Tata Consultancy Services (NSE:NS: TCS ), and HCL Technologies (NS: HCLT ) (NSE:HCLTECH) reported YoY growth in net profit for the quarter ended September 30. Kotak Institutional Equities predicts a margin expansion of 60-110 basis points over FY2024-26E for these IT companies.

Maruti Suzuki (NS: MRTI ) (NSE:MARUTI), UltraTech Cement (NS: ULTC ) (NSE:ULTRACEMCO), and Asian Paints (NS: ASPN ) (NSE:ASIANPAINT) reported over 50% YoY growth in their respective bottom lines during the reviewed quarter. SMIFS Ltd set a target price of ₹12,432 for Maruti Suzuki after Q2 results, emphasizing Maruti's commitment to launching new models including six EVs by FY31 and its strategy to gain market share.

HDFC Bank (NS: HDBK ) (NSE:HDFCBANK) posted a net profit of ₹16,811 crore in Q2 against ₹11,125 crore (INR100 crore = approx. USD12 million) last year following its merger with HDFC on July 1, 2023. Despite the merger, BP (NYSE: BP ) Wealth stated the numbers were not comparable on an apple-to-apple basis.

Nestle (NS: NEST ) India (NSE:NESTLEIND) and ITC (NSE:ITC) reported net profit growth of 37.3% and 6%, respectively, YoY. IIFL Securities lauded Nestle India's well-executed distribution strategy and higher pricing growth that is expected to rise in the coming quarters. The company set a target price of ₹25,000 for Nestle India. KRChoksey Shares and Securities praised ITC's strong performance in key segments and gross revenue distribution, setting a target price of ₹533 for the company.

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