Healthy top line and tepid bot­tom line seen for Nifty firms

Financial Chronicle - - MONEY - FC BUREAU

The 50 Nifty com­pa­nies are likely to re­port a healthy sales growth of 18 per cent yearon-year, with banks driv­ing and en­ergy and auto com­pa­nies drag­ging the over­all per­for­mance in the Septem­ber quar­ter.

Ac­cord­ing to Elara Se­cu­ri­ties es­ti­mates, the bottomline growth of the Nifty com­pa­nies would be muted at 6.3 per cent YoY, pri­mar­ily on ex­pected con­trac­tion in auto, en­ergy and tele­com sec­tors. This, de­spite banks post­ing a healthy earn­ings ex­pan­sion of 69 per cent.

Ex­clud­ing com­mod­ity, profit af­ter tax could see 13.8 per cent growth YoY for com­pa­nies con­sti­tut­ing the Nifty-50 In­dex. Mar­gin is ex­pected to be healthy, with an Ebitda mar­gin (ex-financials) of 15.6 per cent YoY and PAT mar­gin of 11.5 per cent YoY for the com­pa­nies in the Septem­ber-De­cem­ber 2018 quar­ter, says the Elara pre­view of Q3 re­sults.

“Dis­sect­ing Nifty EPS across quar­ters we find that a steep 55 per cent YoY growth is war­ranted in Q4FY19 to achieve our tar­get FY19 EPS of 536, in­creas­ing the risk of earn-

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