These two stocks from NIFTY50 gave consistent growth in PAT for four quarters; check details

The Q2FY25 earnings season concluded with most companies reporting dismal numbers. Overall, earnings were weak, with topline growth slowing down and high operational expenses denting margins.

Reacting to the weak earnings session, the markets, too, tanked over 10% on broader indices and nearly 10% on key benchmark indices NIFTY50 and SENSEX.

However, there were outliers, too.

Despite the weak earnings season, few stocks have consistently shown bottom-line growth, as their profit after tax has grown continuously in the last four quarters. In the NIFTY50 pack, ICICI Bank and Shriram Finance witnessed consistent growth in profit after tax in the past four quarters.

Let's take a look at them in a little detail.

ICICI Bank

The country’s second-largest private-sector bank saw strong growth in the quarter ended September 2024. The bank reported ₹20,000 crore of net interest income for the quarter, 10% higher than the previous year's similar quarter. Consequently, the net interest margins for the quarter also remained strong at 4.2%, a little lower than 4.5%, reported in the corresponding quarter of the previous fiscal.

As regards the bottom line, profit after tax for the quarter jumped 14.5% YoY to ₹11,746 crore, compared to ₹10,200 crore logged in the year-ago period.

The bank also witnessed consistent growth in profit after tax in the preceding quarters.

Overall, the bank witnessed strong growth across major parameters like deposits and advances growth. The total deposits for the bank grew by 14.7% YoY to ₹14,977 crore.

Similarly, the advances too grew by 15% YoY to ₹12,722 crore as compared to ₹11,105 crore in the September 2023 quarter.

On the asset quality front, the bank's GNPAs and NNPA improved to 1.97% and 0.42% for Q2FY25, respectively, compared to 2.23% and 0.43% in Q2FY24.

Considering the overall strong performance, the share price of ICICI Bank gave strong returns of 25% on a YTD basis and 35% on an annual basis.

Shriram Finance

In the recent quarterly results, the company reported a 16.3% YOY jump in net interest income to ₹5,606 crore, compared to ₹4,818 crore registered in Q2FY24.

Similarly, the profit after tax for the quarter also stood strong at ₹2,071 crore, higher by 18% YoY as compared to ₹1,750 crore in the corresponding quarter last year.

The strong growth was in tandem with the previous three quarters when the company witnessed consistent growth in profit after tax.

The strong profit growth was largely driven by equally strong growth in the company's assets under management, which grew by 20% YoY to ₹243,000 crore as against ₹202,640 crore in Q2FY24.

Remarkably, both stocks have shown strong performance in their share price in 2024 in tandem with the growth in earnings. Amid dismal earnings across the board, these two stocks posted a solid performance and showed resilience in the distressful environment.