“Our FY2022E and FY2023E net profits of the Nifty-50 Index are higher by 0.4% and 0.8%, compared to the start of the 1QFY22 results season,” said analysts from Kotak Institutional Equities.
True, the fiscal first quarter was challenging for Indian companies as the second covid wave’s restrictions made business conditions tough. Analysts pointed out that the pace of earnings upgrades has slowed down.
“The FY22 earnings for 49% of the 117 companies (analysed) were upgraded while 42% saw downgrades. The pace of upgrades is the slowest in the past four quarters, but we note that as the earnings season progressed, analysts were more biased towards upgrades—likely as companies presented a bullish July/ September quarter commentary,” said analysts from Jefferies India Pvt. Ltd in a report on 17 August.
A striking feature of the…