Dragged by the adverse impact from metals and oil and gas sectors, Nifty earnings are expected to remain flat in the September quarter, the results of which started coming in from Monday with TCS leading the way.
Sectors like auto, aviation, travel, chemicals, capital goods and financial services are expected to report strong EBIDTA growth while oil and gas will be major drags, according to brokerages.
“Overall, earnings on the domestic front are still holding up (partially aided by low base). However, demand dynamics are only worsening with global demand slowing (PMI in contraction), rates rising and prices cooling off. This is likely to weigh on earnings estimates,” domestic brokerage
Securities said.
Driven by cuts in metals and oil and gas earnings,
has reduced its FY23 Nifty EPS estimate by 3% to Rs 817.
Among Nifty companies, three of them –
, and – are expected to report over 100% growth in profit after tax (PAT).
For India’s largest car manufacturer Maruti Suzuki, Motilal expects a 297% YoY growth in its Q2 profit at Rs 1,900 crore. Besides the easing of supply-chain constraints, the auto major’s EBIT margin is expected to improve on a QoQ basis due to price hikes, forex benefits, and operating leverage.
Asian Paints is expected to report 106.6% YoY growth in its net profit to Rs 1,300 crore. Telecom operator Bharti Airtel’s Q2 PAT is likely to grow over 150% YoY to Rs 1,500 crore.
The brokerage expects Airtel to report 3% revenue growth sequentially, led by an increase in ARPU and subscriber addition.
NOCIL,
, , Oil India, , , , , , , and are a few other companies whose bottomlines are expected to at least double in the quarter.
Motilal expects Aditya Birla Fashion’s profit to grow 8 times YoY to Rs 47.2 crore while Godrej Properties’ PAT is seen zooming 4 times to Rs 143.5 crore.
RBL Bank’s net is seen jumping 560.8% YoY to Rs 203.5 crore. “Expect business growth to see an uptick. Margin likely to remain stable at 4.4%,” Motilal Oswal said.
LIC Housing Finance’s core PAT is seen increasing 165% YoY to Rs 925.5 crore. “We expect NII to grow at ~2.5%, and a strong 41% yoy growth over a low base,” Edelweiss said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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