INSUBCONTINENT EXCLUSIVE:
Mumbai: The earnings downgrade cycle for companies continues even as the results were above estimates, said financial services firm CLSA,
cutting Nifty earnings estimates for the current financial year by 5 per cent.
CLSA expects the Nifty earnings to grow 16 per cent in the
as the results were above estimates, the ratio for earnings upgrades/downgrades was negative; 43 per cent of the 132 companies saw
downgrades to FY19 earnings, while 23 per cent have seen upgrades
oil PSUs earnings grew 11 per cent, below estimates
partly due to a low GST transition base, but the quarter had negative surprises from automobiles, cement and telecom companies.
Estimates
disappointed on margins with a combination of rising raw material prices and higher domestic competition driving earnings downgrades of 6-8
performance and average realisations were good during the quarter, said CLSA
ended June, but management commentary on demand in the key US market was a positive takeaway from the quarter, said CLSA.
The firm also
highlighted the positives in the housing recovery theme, which it has been bullish on for a long time, stating that presales growth for most
developers was well into double digit with management commentary indicating a broader recovery.
