It’s been a volatile year for Indian stocks, as most sectors are hit by a slowing economy and a severe dent in consumption.
The street is disappointed with L&T Technology Services. The company has cut the revenue guidance for the second time and it’s the second consecutive quarter that this has happened. Now the revenue guidance stands at around 10 percent and even if the performance of Q2 is considered, the revenue growth is muted even though the margins are a bit better.
Similar is the story of Zensar, wherein the revenue growth came in much lower than expected. In fact, the revenue growth has been slowing down and the constant currency growth, which was over 4 percent last year, has slowed down and in this quarter it is just 0.3 percent. The management clarified that the quarterly revenue performance was the reason for the miss.
DCB Bank is also coming under pressure on account of a weak quarter. The loan growth has touched a 14-quarter low and the gross NPA has come in at the highest level in the last 18 quarters. The management did say that they had taken a cost discount, but nonetheless the stock is coming under pressure.
Oberoi Realty is also facing the heat because not only the Q2 numbers were not very enthusing, but the volumes have also been down 29 percent and bookings have been down 43 percent. On the flip side the debt has gone up and that has created a bit of a nervousness in the market.
There are some earnings as well. Piramal Enterprises has reported a revenue rise of around 15 percent and the profit also jumped 15 percent. The performance of the pharma business was rather strong with a revenue growth of 17 percent but it was the financial business that did not perform that well because the loan growth remained muted there.
AU Small Finance is another stock that continues to perform well. The growth rate has moderated a tad bit but continues to be strong. The management do not foresee any MSME challenge, which is a bit of a positive.
Another solid performer is Avanti Feeds, where the revenue is up 40 percent and the profit is up by 130 percent.