How Nifty constituents performed in Q4FY20?
We bid goodbye to FY2019-20 during the COVID-19 induced 21-day first nationwide lockdown which started on March 25, halting the economic wheel. Yet, we are aware that such a situation was not only in India, but experienced worldwide due to Coronavirus outbreak. It has caused businesses across the world to suspend their operations and has consequently, dampened the financial health of all such businesses.
Standing almost at the end of Q4FY20 earnings season, we have taken Nifty 50 companies belonging to various sectors, to analyse their performances during this period. Out of the 50 companies, nearly 28 companies have already declared their last quarter result of FY20. The overall net sale of these 28 companies has grown by 3.2 per cent from the same quarter of the previous year; however, it has dipped 7.5 per cent from the preceding quarter of the same year. Only eight companies out of 28 companies that have declared their Q4FY20 result have witnessed a fall in revenue.
Exhibit 1
| Company |
YoY Sales growth (in per cent) |
| Adani Ports and Special Economic Zone |
-5.2 |
| Bajaj Auto |
-8.5 |
| Hindustan Unilever |
-9.6 |
| JSW Steel |
-19.6 |
| Maruti Suzuki India |
-17.1 |
| Reliance Industrie |
-2.3 |
| Shree Cement |
-2.1 |
| Ultratech Cement |
-13.1 |
Source: Ace Equity
In terms of operational performance, combined EBITDA of these 28 companies rose 8.6 per cent on YoY basis; however, the same dipped 2 per cent on QoQ basis. Excluding Banks and NBFCs, the eight companies have witnessed fall in their EBITDA.
| Company |
YoY EBITDA growth (in per cent) |
| Adani Ports and Special Economic Zone |
-66.9 |
| Cipla |
-34.1 |
| Hindustan Unilever |
-12.3 |
| JSW Steel |
-33 |
| Maruti Suzuki India |
-31.7 |
| Tech Mahindra |
-31 |
| Ultratech Cement |
-3.9 |
| Wipro |
-4.3 |
Source: Ace Equity
In terms of bottom-line, all these 28 companies reported 21.1 per cent YoY and 28.7 per cent QoQ fall in their profit. This is because nearly 17 companies witnessed falls in profits. Axis Bank and Bharti Airtel were the only firms that reported a loss in the quarter.
However, there were companies which reported stellar performance across the board such as:
| Company |
YoY Sales growth (in per cent) |
YoY EBITDA growth (in per cent) |
YoY PAT growth (in per cent) |
| Bharti Infratel |
0.4 |
14 |
18 |
| Dr. Reddys Laboratories |
16 |
16 |
75 |
| HCL Technologies |
16 |
35 |
24 |
| Infosys |
8 |
10 |
6 |
| Nestle India |
11 |
5 |
14 |
| UPL |
31 |
47 |
162 |
Source: Ace Equity
Despite the fact that businesses were shut merely for a week in Q4FY20, many businesses have reported a weak set of numbers. After a lockdown scenario of the last two months, the economy has started reopening gradually since the start of June. During this period there is bound to be an impact on the income statements of many companies but those with strong balance sheets (debt-free, ample cash, etc.) are well-positioned to survive and even thrive in such crucial times.