Healthy top line and tepid bottom line seen for Nifty firms
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-