by strong profitability at overseas arm Taro and favourable currency equation, according to the Motilal Oswal report. Cipla reported higher than expected EBITDA, driven by better sales mix in its export business and favourable currency. Ranbaxy witnessed higher than expected core profitability led by higher Lipitor sales and partly due to favourable currency.
In the technology space, TCS surprised positively with volume growth of 5 per cent quarter-on-quarter while Infosys’ margin decline of 170bps QoQ despite no impact from wage hikes. In Telecom, all three listed operators –Bharti, Idea and Reliance Communications –beat estimates by 2.5-3 per cent at EBITDA level led by better-than-expected cost control. Mobile revenue, though, was below estimates due to pressure on traffic growth.
Keeping with the trend, the current results season does leave us in a better position in terms of the outlook for the coming quarters, both in terms of financial outlook and stock performance. In the auto sector, Maruti Suzuki has indicated better demand due to festive season and new Alto launch, with the order book for diesel vehicles remaining strong. Tata Motors guided better second half 2012-13 while L&T has maintained its guidance in its second quarter guidance. Among consumer goods players, HUL indicated a moderation in discretionary categories volume growth. Pricing component to continue to fade while ad-spends will be kept competitive to deal with any rise in competitive intensity on the back of input cost deflation. Among tech firms, Infosys retained its 2012-13 US Dollar revenue growth guidance of 5 per cent. Wipro guided for 1.2 per cent-3.2 per cent quarter-on-quarter US$ revenue growth in the second quarter of 2012-13. TCS and Cognizant expect furloughs (temporary unpaid leave) to impact growth in the third quarter of the fiscal. Among telecom firms, Bharti’s capex guidance unchanged at $3-3.2 billion (as against 2011-12 capex of $2.8b).
So at a time when the economy is certainly slowing and the pressure on the fisc is mounting, for investor at large, the latest quarterly results come augur hope. In the final analysis, going by the latest quarter’s results, small-cap companies seem to have