Top five firms that beat the Street in fourth quarter: Here's how brokerages view them

NEW DELHI: India Inc reported numbers largely in line with Street estimates for the quarter ended March 2014. We take a look at the performance of five top companies that saw profits well above Street estimates:

Company Name	Report Profit for Q4FY14	Expectations
Idea Cellular	Rs 589.80 crores	Rs 525 crore
Indian Overseas Bank	Rs 268 crores	N.A
Wipro	Rs 2230 crores	Rs 2080 crores
TVS Motor Company	Rs 82 crores	Rs 79 crores
Federal Bank	Rs 277 crores	Rs 220 crores

1) Idea Cellular: Profit rose 90% YoY to Rs 589.80 crores

Although Idea reported Q4FY14 earnings were ahead of estimates both on revenue and EBITDA fronts but internals surprised negatively with a 3.5 per cent decline in voice ARPM and a 15 per cent decline in ARMB.

Idea Cellular almost doubled its consolidated net profit for the quarter ended March 2013. The Aditya Birla Group Company said consolidated net profit rose to Rs589.8 crore from Rs308.2 crore a year earlier. Analysts had expected net profit growth at around Rs 525 crore, riding on a near 15% rise in consolidated revenue.

Although, analysts remain confident of Idea’s fundamentals but post results some of them have lowered their estimates for Idea to account for the weaker FY15-FY16.

“We continue to view the spectrum renewal (900 Mhz) in FY15/16 as a risk to Idea’s cash flows. Our FY15/16 earnings are revised by 23%/9% for higher interest costs and depreciation charges,” Barclays said in a report.

Brokerage Name	Rating	Target Price
ICICI Securities	Reduce	Rs 141
Barclays	Equal Weight	Rs 154
Elara Securities	Accumulate	Rs 150
Kim Eng	BUY	Rs 203
Religare Research	SELL	Rs 120

2) Indian Overseas Bank: Profit rose over 300% to Rs 268.33 crores

State-run Indian Overseas Bank reported over four-fold jump in net profit at Rs 268.33 crore for the last quarter of FY2013-14 compared to the year-ago period. The Chennai-based bank had reported a profit of Rs 58.87 crore for the same period last year.
Post results, the stock has rallied a little over 12 per cent in a matter of two trading sessions, while since February the stock is up over 30 per cent.

3) Wipro Ltd: Profit rose over 10% QoQ to Rs 2230 crore

Wipro, India's third largest IT exporter reported a net profit of Rs 2,230 crores for the quarter ended March 2013, up 10.5 per cent against a net profit of Rs 2014.7 crores in the in previous quarter. ET Now poll expected PAT to be at Rs 2080 core.
According to analysts, in the immediate short-term Wipro may face some bit of selling pressure post results and investors can look at partially booking profits. Wipro expects the revenues from IT Services to range with in $1,715-1,755 Mn, implying a sequential growth between -0.3% and 2.0%.

As a result, while the company’s Q4 FY2014 results remain upbeat, its guidance remains disappointing. However, the long-term uptrend still remains intact and patient investors should hold onto their long positions as the stock may touch levels above Rs 600 in short-to-medium term.

Brokerage Name	Rating	Target Price
Nomura	Neutral	Rs 600
Prabhudas Lilladher	BUY	Rs 680
Sharekhan	BUY	Rs 650
Religare Research	Hold	Rs 600

4) UPL Ltd: Adjusted net profit rose by 40% YoY to Rs 82 crores

Driven by a strong operating performance adjusted net profit grew strongly by 40.8 per cent YoY (19.4% QoQ) to Rs 82 crores, marginally higher than expectations of Rs 79 crores.

TVS Motor reported a net profit of Rs 52.1 crore for the quarter ended Jan-March against a net loss of Rs 32.7 crore in the corresponding quarter last fiscal.

During the quarter, the company made a provision of Rs 33cr towards its wholly owned subsidiary, TVS Motor Company (Europe) B.V. Accounting for the provisions, reported net profit stood at Rs 52 crores.
According to analysts, the company has been performing well with pick-up in exports and better margins. They are bullish and are advising investors to buy the stock from long term perspective.

Brokerage Name	Rating	Target Price
Elara Capital	Accumulate	Rs 100
IDFC Ltd	Outperformer	Rs 121
IIFL	BUY	Rs 105
Sharekhan	BUY	Rs 123
LKP	BUY	Rs 111

5) Federal Bank: Net profit rose 25% YoY to Rs 277.29 crores

The net profit has jumped 25 per cent to Rs 277.29 crore as compared to ET Now poll of Rs 220 crores. The operating profit increased 15 per cent to Rs 420.04 crore. The total income went up by 13.30 per cent over the last quarter in the previous year to Rs 2017.11 crore.

Brokerage Name	Rating	Target Price
Sharekhan	BUY	Rs 110
Motilal Oswal	BUY	Rs 118