
The 1QFY09 results clearly indicate the pressure on margins and challenges in execution. Going forward, corporate India will face the headwinds of slowing demand environment. Stock to bottoms-up stock selection.
Autos: 1QFY09 EBITDA margins declined across the board due to rising raw material cost pressures.
Banks / Finance: Axis bank was a surprise Positive while ICICI Bank is the Worst Hit for now.
Capital Goods: Strong order book growth and improvement in EBITDA margins for BHEL. L&T also registered robust growth in order book. ABB was a negative.
Media: Zee results were strong led by 37% YoY growth in ad revenues and 28% in subscription.
Oil & Gas: ONGC's results came below estimates, however, due to higher than expected exploration expenses; [Stay away from Oil Marketing companies]
Real Estate: Topline growth was weaker than expected for most companies as impact of slowdown led to reduction in new projects launched; Margins were down across the board.
Telecom: Bharti's operating performance was 4% ahead of estimates led by lower than expected ARPU decline of 2%QoQ and higher than expected 5%QoQ increase in MoU. RCom was a negative Surprise and faced downgrade.