Q2 earnings preview: No fireworks this time; OMCs, BFSI may lead from the front

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TCS reporting its current fiscal's July-September quarter (Q2FY24) earnings, Indian corporates will start disclosing their September quarter scorecards from Wednesday, October 11. Experts are not expecting a firework this time. They believe the numbers will be mostly stable.

Some sectors like IT may post softer numbers while some sectors such as OMCs, BFSI (banking, financial services and insurance), auto and pharma may post healthy numbers. "Nifty earnings are likely to be resilient this quarter led by the financials, autos, and oil and gas sector (OMCs). Cement too should contribute to Nifty earnings this quarter owing to a low base versus last year," Sonam Udasi, Senior Fund Manager at Tata Mutual Fund told Mint.

Also Read: Nifty earnings to be resilient this quarter; election outcomes major trigger for markets: Sonam Udasi of Tata MF Brokerage firm Motilal Oswal Financial Services expects Nifty earnings to grow 21 per cent year-on-year (YoY) in Q2FY24. The brokerage firm believes the profitability of oil marketing companies (OMCs) may surge to ₹26,200 crore in Q2FY24 from a loss of ₹2,700 crore in Q2FY23, fueled by strong marketing margins. Excluding OMCs, Motilal Oswal said Nifty earnings are likely to increase 15 per cent YoY for the quarter.

Sales and EBITDA of Nifty may improve 7 per cent and 19 per cent YoY, respectively. Excluding OMCs, EBITDA of Nifty is expected to grow 14 per cent YoY, Motilal Oswal said. (Exciting news! Mint is now on WhatsApp Channels.