Q1FY23 Results Winners & Losers

With several factors lending volatility to the equity markets and creating a downturn, it is time now to study the corporate results to check whether there are signs of a healthy uptrend for the coming quarter as well as get some insights on the sectors that have fared well. Armaan Madhani takes stock of Q1FY23 earnings, highlighting the hits and misses

The quarter ended June 30, 2022 witnessed a tempestuous and volatile operating environment in the equity markets on account of raging inflation levels, aggressive monetary policy tightening by central banks of major world economies, wild swings in crude oil prices, unprecedented rise in commodity prices, prolonged geopolitical tensions amidst Russia and Ukraine as well as price hikes by companies across the board to safeguard margins. Key monitorable trends that will impact the June quarter earnings comprise margin pressure, management commentary on inflation and future demand outlook. Let us decode the Q1FY23 earnings of early bird companies that have declared their results and discern the preview of companies expected to announce earnings in the coming weeks.

Sensex Constituents’ Performance

India’s largest IT services company, Tata Consultancy Services (TCS) kicked offthe earnings season on a sombre note by missing analyst estimates. Margins were seen under pressure due to elevated employee-related expenses while travelling expenses gravitated towards the pre-pandemic levels. TCS’s consolidated revenue for Q1FY23 stood at ₹52,758 crore, up by 16.2 per cent from ₹45,411 crore recorded in Q1FY22. Constant currency revenue growth stood at 15.5 per cent on a YoY basis. The company reported a 5.21 per cent rise in net profit in the June quarter relative to the same quarter last year.