BSE500 earnings downgraded by 3%; H2FY25 asking rate high: Nuvama
demand and fading margin tailwinds. Earnings were downgraded by 3% for FY25, reflecting broader market struggles.
The corporate earnings outlook for H2FY25 hinges on government spending and rural demand recovery, but sustaining growth will require stronger sectoral performance, Nuvama Research noted. A 2% cut in Nifty's FY25 EPS estimate to Rs 1,057 further underscored the challenges, the brokerage said.
India’s corporate earnings for Q2FY25 showed an 8% year-on-year profit after tax (PAT) growth for the BSE500, excluding oil marketing companies, down from 10% in Q1FY25, with major drags from Shree Cement, JSW Steel, and Bajaj Auto.
Cement companies, for the first time in decades (excluding COVID-19), saw their revenues contract, burdened by declining EBITDA per ton and subdued demand. Commodities, especially metals and energy, struggled with profitability challenges, including weak performances from JSW Steel and Reliance Industries. Auto companies such as Bajaj Auto saw pent-up demand fade, while global OEMs forecast subdued volumes for CY24.
Also read | Q2FY25 review: Weak quarter as Nifty delivers just 4% YoY earnings growth; RIL, BPCL among major drags
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