Q3 Result: India Inc. may deliver moderate profit, negative surprises unlikely; here's what experts say

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Nuvama Wealth Management, Nifty earnings may grow 10 per cent year-on-year (YoY) in Q3FY24. The brokerage firm pointed out that the gap between the top line and profits is now narrowing and given the high base, earnings are likely to moderate further in Q4FY24. "The strong first half of the financial year 2024 (H1FY24) has ensured limited downside risks to FY24 earnings," Nuvama said.

"After a strong H1FY24 (nearly 18 per cent PAT growth), we forecast our coverage universe (ex-OMCs) profits to moderate to 10 per cent," Nuvama said. The brokerage firm believes the top line may remain muted in commodities, exporters, and consumption, but also soften (still above 10 per cent) in BFSI, industrials and autos. On a YoY basis, Nuvama expects PAT to be strong (more than 20 per cent) in industrials, autos and cement but weak (less than 10 per cent) in BFSI, FMCG, IT, chemicals, consumer services, etc.

"Overall, demand remains weak (consensus is forecasting an uptick in H2FY24) while margin tailwinds are fading. If sustained, it poses risks to FY25/26 consensus earnings estimates," Nuvama said. Also Read: Q3 result preview: IT firms expected to post muted revenue, subdued profit amid weak demand Kotak Institutional Equities expects the Q3FY24 net income of its universe to increase 22 per cent YoY overall, but 20 per cent YoY excluding oil marketing companies (OMCs).