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  5. Earnings overview of NIFTY50: 15 companies reported a decline in net profit on a YoY basis; NIFTY50 Revenue grew by 6.5%, while Net Profit soared by 5.4%

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Earnings overview of NIFTY50: 15 companies reported a decline in net profit on a YoY basis; NIFTY50 Revenue grew by 6.5%, while Net Profit soared by 5.4%

Upstox
By Upstox News Desk

3 min read | Updated on November 13, 2024, 18:08 IST

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SUMMARY

The Q2FY25 earnings for NIFTY50 companies revealed modest growth, with revenue increasing by 6.5% and net profit by 5.4% year-on-year basis. Among the 47 companies that reported results till now, 15 posted negative earnings growth. Sector performance varied, with telecom seeing high net profit growth while oil & gas saw a decline in both revenue and net profit.

Stock list

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Among the NIFTY50 universe, 15 companies reported a decline in net profit on a YoY basis; NIFTY50 Revenue grew by 6.5%, while Net Profit soared by 5.4%

The July-September quarter (Q2FY25) consolidated earnings of NIFTY50 companies largely fell below expectations, showing single-digit growth in both EBITDA and PAT, which points to a broad-based economic slowdown in India.

Weak earnings driven by low consumption and high operating costs

The overall weak Q2 earnings were due to the decrease in urban consumption and higher operating expenses, which further impacted the companies' margins. Government spending during the quarter was moderate, restricting the second quarter's performance. Urban demand also was subdued and reflected in the FMCG, retail, and automotive sectors, which saw a decline in volume. The chemicals and consumer durables sectors have also experienced a decrease in demand. NBFCs reported stress in their unsecured lending portfolios.

To date, 47 companies forming part of the NIFTY50 index have declared their Q2FY25 earnings. Out of them, 28 have posted positive profit growth, 15 posted negative profit growth while the rest remained flat.

Top revenue performers and decliners in Q2FY25

On an aggregate basis in Q2FY25, NIFTY50 companies (currently 47 announced their results—Eicher Motors, Hero Motocorp, and Grasim have yet to announce their results) showed modest growth in both the top line and bottom line. The index has posted 6.5% year-on-year revenue growth, and EBITDA has shown single-digit year-on-year growth of 9.6%. The operating profit of NIFTY50 stocks has logged 5.4% year-on-year growth.

For the quarter ending September 2024, among Nifty50 companies which showed most revenue growth were SBI Life Insurance Company (39.90%), Trent (39.40%), Bajaj Finserv (29.50%), Bajaj Finance (27.70%), and HDFC Life Insurance Company (23.10%). On the other hand, JSW Steel (-11.00%), Coal India (-6.40%), and Asian Paints (-5.30%) posted negative revenue growth in the same period.
Among the NIFTY50 constituents, the top 4 stocks that showcased triple-digit net profit growth, with an impressive performance were Adani Enterprises (664.50%), Bharti Airtel 168%, Tech Mahindra (153.10%) and Tata Steel (113.50%). On the flip side, Asian Paints (-42.40%), Bharat Petroleum Corporation (-72.10%), and JSW Steel (-84.10%) disappointed investors with negative profit growth.

Performance across the broader NSE stock universe

In the all-NSE stock universe, Q2FY25 revenue grew by 7.9%, EBITDA jumped by 8%, and net profit showed 3.2% growth on a yearly basis. The telecom equipment industry posted the highest net profit growth of 104% in the telecom sector, with revenue growth recorded at 58%. The oil and gas sector faced the most disappointing earnings, with net profit declining by over 40%.

Source: trendlyne.com, research360.in

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Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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