Q2 Results outlook: After TCS, Infosys and HCL Tech, here is what to expect from India Inc's scorecard

livemint.com:

Q2 Results Outlook: In the struggle of a global economic slowdown, India is witnessing a stroke of fortune. Post initial hurdles, the outlook for FY24 is poised for a gradual, yet promising, transformation. FY23 wrapped up on a subdued note, with subpar earnings growth and soaring valuations.

Initially, it did have a mirror effect on the future forecast of FY24. However, when the domestic economy remained resilient to global challenges and the inflation started to peak out, it eventually led to an upswing in India's corporate earnings. After the below-par quarterly results of the latter half of FY23, it was projected that Q1FY24 would yield an improvement in profitability, facilitated by a reduction in commodity input prices.

However, skepticism was lingering in the market regarding the sustainability of the positive forecast, given the persisting global headwinds and significant FII sell-off. Surprisingly, the Q1 actual results not only surpassed the forecast but also delivered an impressive 10% outperformance, with an actual Nifty PAT growth of 30%. The most incremental growth providers were Finance, Auto and Oil & Gas sector.

The weakest were Metals and FMCG due to high inflation, while rest of the other sectors were mixed with a positive bias. And the delight is that the optimism is expected to continue in Q2. The Nifty50 consolidated PAT is estimated to grow again by a whopping 21% YoY, a similar number forecast in Q1FY24.