Morgan Stanley-India Equity Strategy 3FQ24 Earnings – Final Cut Another G...-106563109

MFebruary16,202404:20PMGMTUpdateIndiaEquityStrategyAsiaPacificMorganStanleyIndiaCompanyPrivateLimited++91226118-2222+91226118-22243FQ24Earnings–FinalCut:RidhamDesai+91226118-1008AnotherGoodQuarterEquityStrategistEarningsgrowthtrendremainedintactin3FQ24asmarginsRidham.Desai@morganstanley.comexpandedforthe4thconsecutivequarter.RevenueandEarningsgrowthbeatouranalysts'expectationsalbeitthebreadthinSheelaRathiearningsbeatwasata5-yearlow.BroadMarketearningsoutperformedthenarrowmarket.EquityAnalystSheela.Rathi@morganstanley.comMorganStanleycoverage:ForF3Q24,companiesunderMorganStanley'scoveragereportedrevenue,EBITDA,PBTandnetprofitgrowthof5%,13%,25%and23%,NayantParekhrespectively,vs.ouranalysts'expectationsof2%,12%,18%and20%.EBITDAmarginexpandedforthe4thquarterrunning.Ex-Energy,revenueandnetprofitgrowthEquityStrategiststoodat9%and22%,respectively,in-linewithouranalysts'expectations.TheNayant.Parekh@morganstanley.comearningsbeatratiofellto5-yearlows,at42%,whilerelativestockoutperformancepost-earningsannouncementswasupQoQ,at46%(Exhibit14).Exhibit1:RevenueandEarningsGrowthTrendsMarginalbeatonearnings:Sensexreportedrevenuegrowthof8%YoY,in-linewithouranalysts'expectationswhileNiftyreportedrevenuegrowthof6%YoY,abeatofYoYRevenuegrowthQ3F23Q4F23Q1F24Q2F24Q3F24EQ3F242ppt.NetprofitgrowthforSensexandNiftystoodat15%and13%,beat...