Motilal Oswal - MOSL: INDIA STRATEGY | 4QFY17 Earnings Review-Aggregate performance masks underlying weak operating dynamics

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Motilal Oswal

Gautam Duggad

MOSL: INDIA STRATEGY | 4QFY17 Earnings Review-Aggregate performance masks underlying weak operating dynamics

â€‹INDIA STRATEGY | 4QFY17 Earnings Review: Aggregate performance masks underlying weak operating dynamics

Ten key takeaways from 4QFY17 and FY17 earnings season

4QFY17 earnings season concluded with aggregate MOSL Universe headline numbers meeting our expectations and Nifty earnings beating expectations by 6%.

Nifty has rounded off FY17 with 8% earnings growth, while the broader MOSL Universe posted 15% earnings growth.

However, looking beyond the numbers, the underlying operating performance still doesnâ€™t exhibit broad-based strength. 42% of our Universe reported profit decline v/s 34% in 3QFY17.

The 4QFY17 beat at Nifty PAT level is accounted for by just four companies - Tata Motors, Tata Steel, L&T and Reliance.

Cyclicals drove the quarterly performance, aided by low base. Defensives posted another quarter of earnings decline, dragged by Technology and Healthcare. Contribution of Defensives to our Universe PAT shrank further.

For our broader Universe, PSU Banks, Metals and Oil & Gas accounted for 110% of the YoY delta in MOSL Universe PAT.

Impact of demonetization is waning in B2C sectors, with QoQ revenue growth rebounding for FMCG and Auto.

Housing Finance â€“ a multi-year growth opportunity â€“ posted another quarter of strong performance, with profit growth for individual companies ranging from 18% to 30%.

06/06/2017 72 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Gautam Duggad

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MOSL: INDIA STRATEGY | 4QFY17 Earnings Review-Aggregate performance masks underlying weak operating dynamics

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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