Q3 commentaries: What Titan, Dish TV, PVR, 30 others say on cash ban impact, recovery

NEW DELHI: For India Inc, December quarter was marked by the government move to demonetise high-value currency notes.

But the quarterly earnings that have come in so far – 22 per cent YoY growth in adjusted profits for the BSE500 companies – suggests the market was factoring in the worst- case scenario.

Company managements, too, have sounded positive after the quarterly results and broadly their view has been that they are over with the pain of demonetisation.

However, analysts noted that even though the setback was short term, a decent visible recovery from there on will be difficult, which could disappoint Dalal Street investors going ahead.

Brokerage Edelweiss Securities in a note said the growth in Nifty’s earnings per share stood at 3 per cent in the first three quarters of FY17 against 8 per cent growth forecast for the full year.

“This implies we need 25 per cent earnings growth in Q4 of FY17. While the base is certainly favourable, we might see further earnings downgrade for Nifty50,” the brokerage said.

Brokerage BofA-ML said despite the management commentaries, the growth recovery in terms of absolute numbers is yet to be tested.

“This has created room for disappointment – given the sharp upturn in stock prices and expectations. We stay underweight on discretionary; and will continue to track retail sales trends. The momentum is strong, but our December-end 2017 Sensex target of 29,000 leaves little room on the upside,” the brokerage said.

The two-wheeler sector is expecting a recovery by March or April. Weakness in the real estate sector may hit cement demand in the short term, while FMCG makers do not expect recovery to kick in before two to three months.

Here’s a detailed study of what 33 company managements said after the third quarter results: