Q1 Results Season Snapshot-----> Who Won, Who Struggled — And Where Is Management Most Confident?

@The headline is simple: Demand is holding up, but margins are the real story. Revenue growth has remained surprisingly strong, but higher input costs and crude-related inflation have prevented that growth from translating equally into profits across sectors. A Mint analysis of 393 companies that had reported results found aggregate income growth of 18% YoY, while a broader 138-company dataset showed 103 companies reporting positive YoY PAT growth. ------->SECTORS THAT STOOD OUT 1. Banking & Financials — One of the Strongest Areas Financial companies have emerged as one of the biggest supports to Q1 earnings so far. Healthy credit demand, improving asset quality and relatively stable funding conditions have supported profitability across several lenders. $SHRIRAMFIN !ABCAPITAL !LTFIN !ICICIBANK 2. Auto — Demand Story Remains Strong Auto continues to be one of the better demand-led sectors. Two-wheelers, passenger vehicles and commercial vehicles have benefited from relatively healthy volumes. !M&M !MARUTI !BAJAJ AUTO !TVSMOTOR 3. Defence & Capital-Intensive Manufacturing Defence continues to show strong order-book and execution-driven earnings. !BDL !HAL !MAZDOCK !SOLARIND ------>SECTORS UNDER PRESSURE 1. Cement Cement companies faced margin pressure from higher costs despite reasonable demand. !ULTRACEMCO !DALBHARAT !AMBUJACEM 2. IT — Still Waiting for a Clear Earnings Reacceleration IT remains one of the more complicated sectors. The Q1 preview had already identified IT as a potential laggard because of margin and demand concerns. !TCS !INFY !HCLTECH !MPHASIS @@@MANAGEMENT CONFIDENCE WATCHLIST This is arguably more important than simply looking at PAT growth. Because one quarter tells you what happened. Management guidance tells you what could happen next. !MANAPPURAM !GODREJCP !IDFCFIRSTB !BDL Current watchlist: Godrej Consumer | HDFC Bank | ICICI Bank | IDFC First Bank | M&M | Hindalco | Oil India | Bharat Dynamics | BEL | Adani Enterprises