Portfolio Health Check: Impact of Q3 FY2024 Earnings

It’s only a fortnight into 2024, but the companies are disrupting the market with their Q3 FY2024 results. With the Israel War, the shipping fiasco, and the global recession tensions, Q3 FY2024 was sandwiched with geopolitical and economic concerns. But still, the Indian market stood strong, achieving historical milestones in the past quarter. But what about your investments in the Q3 earnings landscape? Buckle up because we are about to navigate the highs, lows, and unexpected loops of the Q3 earnings. So, what we’re waiting for? Let’s dive in!

1. Avenue Supermarts (DMart), the retail powerhouse, displayed resilience amidst economic fluctuations. The company posted a net profit of ₹690.61 crore, demonstrating a 17% increase on a YoY basis. Looking at the nine months ended in December, the consolidated net profit of FY24 rose by 3% to ₹1,972 crore, and the revenue grew by 18% to ₹38,062 crore. As of the end of December, D’Mart had 341 stores and added five new stores in Q3. DMart’s business model is resilient and adaptable to the changing business environment, as the management focuses on operational efficiency, cost optimisation, and customer loyalty.
2. HDFC Asset Management Company is a trailblazer creating massive waves in the financial sector. The company’s sales have increased by 19.97% YoY to ₹671.32 crore. As a result of the topline, the profits (PAT) also grew by 32% on a YoY basis, at ₹487.92 crore. Feeds and commission expenses fell 33%, but employee benefit expenses jumped 14% YoY. HDFC AMC anticipates capitalising on the projected ₹100 trillion growth in India’s mutual fund industry by 2025, driven by rising financial literacy and disposable income. 
3. Wipro isn’t just an IT giant; it’s the architect of digital transformations. But in Q3 FY2024, Wipro revealed a decline in the net profits of 12% YoY basis, amounting to ₹2,694 crore as profits. Moreover, there was a 4.4% decline in the total revenue, totalling ₹22,205 crore. The board declared an interim dividend of ₹1 per share with a record date of January 24, 2024. The company has iterated its plan to invest $1 billion in building its Fullstride Cloud service and plans to continue to invest in other high-growth areas. 
4. Infosys, the Bengaluru-based technology forerunner, reported a meagre increase in the top line. With a YoY revenue growth of 1.31%, the company has a revenue of ₹38,821 crore. However, the net profits saw a massive fall of 7.29 YoY% due to an increase in wage cost, pulling down the profits to ₹6,106 crore. The company winning a $3.2 billion deal brings a positive surprise despite cancelling the $1.5 billion deal from the past quarter. The management’s optimistic outlook on investment in AI and strategic initiatives to digitalise the public infrastructure globally reaffirms Infosys as a cornerstone in the tech world.
5. Just Dial is dialling into the future with its Q3 numbers, which is a revelation. It’s not just about growth anymore; it’s about the numbers now, and the profits are rolling in continuously. In Q3 FY 2024, the revenue of the local search engine grew by 19.7% to  ₹265 crore on a YoY basis. EBITDA soared to ₹60.4 crore, a whopping 122.8% increase compared to Q3 FY 2023. Thanks to robust sales and savvy cost management, including tight rein on employee expenses and other costs. Just Dial eyes growth with India’s expected one billion smartphones and 920 million unique mobile users by 2025. This positions Just Dial for significant growth in the evolving digital landscape.

These stocks are creating massive ripples in the markets, with some highs and some lows. But the earnings season is not over yet; you can still invest in your desired stocks and capitalise on the earnings. Open your demat account with Angel One today and join the earnings call.

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.