As we head into the thick of the Q4 results season, let’s take a look at Trendlyne’s industry results dashboard to see which industries are up, and which are down. This edition of chart of the week looks at industries where major companies have released Q4FY23 results. We check the performance in terms of YoY growth in net profit and operating profit margin.
Industries with clear emerging trends include finance (including NBFCs), automobile & auto components, FMCG, IT consulting & software, banks and cement & cement products.
The automobile & auto components industry registered an average net profit growth of 49.1% YoY during Q4FY23. This was helped by a 72.9% and 42.4% YoY rise in net profit for Mahindra CIE Automotive and Maruti Suzuki respectively. MRF more than doubled its net profit during the quarter.
The industry’s operating profit margin improved by 150 bps in the same period on the back of reducing material costs. Major original equipment manufacturers (OEMs) intend to aggressively launch new products in India and make sizable investments. This is expected to intensify competition among the manufacturers, while the ever-improving affordable vehicles segment will boost sales.
The NBFC industry posted an average net profit growth of 61.8% YoY in Q4FY23, with a 9.3 percentage points improvement in operating profit margin. It was aided by a 30.5% YoY, 24.5% YoY and 67.2% YoY rise in net profits of Bajaj Finance, Cholamandalam Investment & Finance and Poonawalla Fincorp respectively. The industry’s average operating profit margin increased on the back of improvement in margins of Bajaj Finance, Mahindra & Mahindra Financial Services and Poonawalla Fincorp.
The FMCG industry witnessed an average net profit growth of 15.1% YoY in Q4FY23 while its operating profit margin declined marginally by 10 bps during the quarter. This net profit rise was aided by a rise in net profit of 12.9% YoY, 23.87% YoY and 47.1% YoY from Hindustan Unilever, Nestle India and Britannia Industries respectively. The rise in average net profit was on the back of reduction in commodity prices of Brent crude, soda ash, caustic soda and crude palm oil tea.
The cement & cement products industry, on the other hand, saw a 25.7% YoY decline in average net profit, while its average operating profit margin decreased by 210 bps YoY in Q4FY23. ACC and Ultratech Cement witnessed their net profits decline by 40.5% YoY and 36.4% YoY respectively during the quarter, causing the industry’s average operating profit to drop.
Meanwhile, ACC, Ambuja Cements and Dalmia Bharat saw a reduction in operating profit margin due to the surge in fuel prices YoY, leading to a fall in the industry average profit margin.
