Bumper start to FY24 earnings! Nifty50 Q1 consolidated PAT likely to grow by over 20% YoY

economictimes.indiatimes.com:

Nifty50 Q1 consolidated PAT is forecasted to grow by more than 20% YoY. This is a transformed perspective compared to the subdued presumption the market had a couple of quarters ago. The domestic market was presumed to face the dark side of the global recession, imprinting a slowdown in the domestic economy.

However, contrary to expectations, the economy showcased a revamped state of affairs in Q4FY23. The GDP growth and corporate results upheld much above the negative bias of the world, driven by stable domestic demand and consistent external orders. And this sanguine trend is expected to continue in Q1.

Key high-frequency data from April to June has been robust like PMI, GST collection, Credit growth, and auto sales. Corporate earnings are forecast to be strong, and a large part of the revamp is due to an expansion in the operating margin as key raw material prices have heavily corrected YoY. As of today, key international commodity prices, from crude to steel, are down in a range of 20% to 40% from last year’s peak.

This has drastically reduced the cost of manufacturing. Regarding demand, it is stable due to external orders led by China plus strategy and firm local demand led by government & private expenditure. And the expansion in margins is expected to persist in the near future, as the recent decrease in raw material prices will continue to benefit corporates with a lag.