New Delhi [India], January 7 : The Nifty 50 companies, excluding financial, telecom, cement, and commodity sectors, are expected to show subdued growth in their financial performance for the third quarter of FY25, according to a report by Antique Stock.
The report highlighted that Revenue, EBITDA, and profit after tax (PAT) for these companies are anticipated to grow at 10 per cent, 8 per cent, and 6 per cent year-on-year (YoY), respectively.
The report stated, "Nifty 50 companies (excluding financial, telecom, cement & commodity) are expected to report revenue/EBITDA/PAT growth of 10 pc/8 pc/6 pc YoY in 3QFY25."
However, despite these growth figures, overall margins are expected to remain flat at 20.4 per cent, indicating pressure on profitability.
Among the various sectors, the report added that significant operating profit growth is expected in agrochemicals, public sector banks (PSU banks), oil marketing companies (OMCs), consumer durables, industrials, and retail.
"Banks should register an earnings growth of 16 per cent YoY, primarily driven by PSU banks, while private peers may report a low single-digit profit growth due to a further decline in margins" said the report
These sectors are likely to drive growth due to improving operational efficiencies and favourable market conditions. In contrast, cement, paint, infrastructure, private banks, and FMCG sectors are projected to underperform.
It said, "Among sectors, we expect strong operating profit growth in agrochemical, PSU banks, oil marketing companies (OMC), consumer durables, industrial, retail; while cement, paint, infrastructure, private banks, FMCG are likely to be laggards."
The IT sector is expected to post modest sequential growth in constant currency terms, ranging from -0.5 per cent to 0.5 per cent, supported by seasonal product demand. Margins in the IT sector are likely to expand slightly.
However, the FMCG sector is facing muted demand with low single-digit volume growth. In the paint segment, profitability may be hit due to increased promotional activities.
The OMCs (oil marketing companies) are expected to deliver a strong quarter due to near-record high petrol and diesel marketing margins, recovery in gross refining margins (GRMs), and improved diesel volumes. However, the sector may face some impact from provisioning for LPG under-recovery.
The cement companies are likely to face challenges, with earnings expected to decline sharply. EBITDA per ton is anticipated to drop by Rs 290, driven by an 8 per cent YoY decline in realisations.
Overall, while some sectors are showing resilience and growth, others face challenges, reflecting a mixed financial outlook for Q3FY25.