Mumbai: After poor performance in the first two quarters of the current financial year, the performance of Indian companies is likely to remain poor in the third quarter also. Companies will see single digit growth in revenue and earnings in the December quarter.
Factors like sluggish demand, rupee instability and high inflation are impacting the performance of companies.
According to estimates made by various brokerage firms, the combined net profit of Nifty 50 companies will see an annual growth of 7.90 per cent in the December quarter. Which will be the highest in the three quarters of the current financial year. The growth rate in the second quarter of the current financial year was 1.80 percent, while the third quarter of the financial year 2024 saw a decline of 15.40 percent in the consolidated net profit.
The combined net sales of Nifty50 companies will grow at 5.10 per cent year-on-year, slightly higher than the 4.50 per cent seen in the second quarter. A research report said that in the third quarter of the last financial year this growth was 5.40 percent.
The company’s revenue in the December quarter will see single-digit growth for the seventh consecutive quarter.
Taking into account the results of 48 out of 50 companies, the research firm estimated a net profit of Rs 1.97 trillion, up from Rs 1.88 trillion in the second quarter and Rs 1.83 trillion in the third quarter of the last fiscal.
The net sales figure in the second quarter of the current financial year was Rs 15.55 trillion, which is expected to be Rs 14.51 trillion in the third quarter. It has been told in the report that in the third quarter of the last financial year this figure was Rs 13.81 lakh crore.
According to the report prepared on the basis of expectations of brokerage firms, banking, finance and insurance companies will perform well on the earnings and revenue front as compared to other sectors.
