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Published: July 5, 2024
Updated: July 5, 2024

India Inc's Q1FY25 Earnings Outlook

The Indian stock market is currently trading at record-high levels, and investor attention is now focused on India Inc's June quarter (Q1FY25) earnings. However, expectations are muted, with a likely decline in Nifty 50's net profit on a sequential basis.

Nifty 50's Net Profit to Decline Sequentially:

Analysts predict a quarter-on-quarter (QoQ) decline in Nifty 50's net profit, despite a flat year-on-year (YoY) growth. This anticipated decline is a concern for the market, given its current inflated valuations.

Sector-Wise Performance:

While oil marketing companies (OMCs) are expected to report subdued earnings, other sectors like automobiles, banks, and pharmaceuticals may post decent YoY growth in net income. The IT services sector is likely to benefit from seasonal strength and stable margins, while capital goods and pharmaceuticals are expected to show strong execution and traction across markets.

Moderate Earnings Growth:

India Inc's earnings growth is expected to be moderate, with some sectors reporting decent growth while others experience declines. The overall earnings growth is predicted to be around 2% YoY in Q1FY25.

India Inc's Q1FY25 earnings are expected to be subdued, with Nifty 50's net profit declining sequentially. While some sectors may report decent earnings growth, others may experience declines. The market will be closely watching the earnings numbers to determine if they justify current valuations.