Consistent Growth: Net Profits Rise for 60 Companies Over Four Consecutive Quarters

ICICI Bank Leads: Secures Top Spot with Rs 11,052.60 Crore Net Profit in Q3FY24

In Q3FY24, over 60 firms have sustained net profit growth for four consecutive quarters, spanning various sectors like finance, railways, and IT.

Notable companies like Zomato, Titagarh Rail, and ICICI Bank are receiving bullish ratings from market analysts, indicating optimism for their future performance and stock value appreciation.

In the December quarter, a remarkable phenomenon was observed as over 60 companies sustained their prosperity, marking their fourth consecutive quarter of net profit growth. Notable entities from diverse sectors including finance, oil and gas, railways, IT, pharmaceuticals, cement, food delivery, and textiles have prominently emerged in this distinguished list. Market watchers express bullish sentiments on a couple of these companies, indicating optimism for their future performance.

ICICI Bank leads the pack with a net profit of Rs 11,052.60 crore in Q3FY24, surpassing its previous quarters’ earnings. The private sector lender reported a profit of Rs 10,896.13 crore in the preceding quarter (ended September 2023) and Rs 8,792 crore in the corresponding quarter (ended December 2022). Julius Baer Equity Research expresses bullish sentiment towards ICICI Bank, revising its target price to Rs 1,240 from Rs 1,180 earlier. According to Julius Baer Equity Research, the bank’s strong digital assets and superior execution position it well to maintain growth, asset quality, and profitability metrics in the future.

Several notable companies, including Bajaj Finance, Union Bank, IndusInd Bank, and others, have reported a consecutive rise in net profit for the fourth quarter, indicating sustained financial growth and performance.

Five-Star Business Finance’s operational performance in Q3FY24 was robust and surpassed consensus estimates, according to Systematix Institutional Equities. The brokerage highlighted the company’s unique market position, best-in-class Return on Assets (RoA), and superior asset quality across cycles as factors contributing to its sustained premium valuation multiple compared to peers. Five-Star Business Finance reported nearly 44% year-on-year growth in net profit, reaching Rs 216.76 crore for the quarter ended December 2023.

Over the previous four quarters, LTIMindtree has demonstrated consistent growth, aligning with L&T Technology Services and KPIT Technologies. LTIMindtree reported profits of Rs 1,168.90 crore in Q3FY24, Rs 1,161.80 crore in Q2FY24, Rs 1,151.70 crore in Q1FY24, Rs 1,113.70 crore in Q4FY23, and Rs 1,000.50 crore in Q3FY23.

Additionally, companies such as Lupin, IIFL Finance, JK Cement, Birlasoft, PCBL, Zomato, Spandana Sphoorty Financial, Fusion Micro Finance, Himadri Speciality Chemical, Elecon Engineering Company, Computer Age Management Services, Action Construction Equipment, CMS Info Systems, and Ramkrishna Forgings have reported impressive bottom-line growth for the fourth consecutive quarter.

The significant turnaround of Zomato from a loss of Rs 347 crore in Q3FY23 to a profit of Rs 138 crore in Q3FY24 highlights the resilience within the food delivery industry. This remarkable performance reflects Zomato’s ability to adapt and thrive in challenging market conditions. In the sequential quarters, Zomato posted a profit of Rs 36 crore in September 2023 and Rs 2 crore in June quarter. Notably, for the article, companies with a net profit exceeding Rs 10 crore in the December quarter are considered.

Following Zomato’s Q3 results, brokerage JM Financial maintained a ‘Buy’ rating on the company, stating, “Zomato reported a very strong quarter in Q3, as most headline numbers were either in line or ahead of estimates, amidst tough macros.” JM Financial set a target price of Rs 200 for Zomato. On February 9, shares of Zomato traded 1.18% higher at Rs 145.70 in the morning trade.

These companies, including HBL Power Systems, Home First Finance, and others, have experienced a consistent rise in their net profit for the fourth consecutive quarter. This signifies sustained financial growth and performance across various sectors.

Systematix Institutional Equities holds a positive outlook on Titagarh Railsystems, setting a target price of Rs 1,258 (up from Rs 1,202 earlier). The company’s strong manufacturing capacity of 8,400 wagons per year, along with a 30,000 mt steel foundry and significant market share in total tenders from FY20-23, contribute to its growth potential. Additionally, its presence in India and France, partnerships with multinational corporations, and planned capacity enhancements are expected to capture robust sector demand. Titagarh Railsystems has consistently demonstrated impressive margin and return ratios, with forecasted strong EBITDA and PAT CAGR during FY23-FY26E. Systematix Institutional Equities values the stock at 30x and anticipates further growth, resulting in an upward revision of the target price.

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