InvestorQ : How do you see the Q1 results till now for the financials and oil stocks?
NISHA Nayak made post

How do you see the Q1 results till now for the financials and oil stocks?

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Priyanka N answered.
4 months ago
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Let me focus on the banking and financial companies first. Most of the large banks, other than SBI are already out. There was clear asset quality stress, starting with HDFC Bank. Most banks and NBFCs have seen some pressure on numbers from lag effect of COVID 2.0. On the top line, the other income component has been offsetting the fall in retail, treasury and corporate banking revenues. Sequential numbers are under pressure across the board.

For oil, the quarter has been relatedly better. What benefited the oil companies, especially the downstream names, were two factors. Crude prices were at a higher yoy which resulted in better price realizations gross refining margins for refiners. Crude at $75/bbl also ensured that the inventory translation also happened at a favourable rate. Extraction company numbers are also more or less in sync showing good growth on yoy basis.

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