Q4 results preview: Top-line, profit of India Inc. may moderate, say experts; domestic cyclical to lead

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here Motilal Oswal Financial Services expects Nifty earnings to grow 6 per cent year-on-year (YoY). Margin tailwinds are likely to narrow due to a high base. EBITDA margin (ex-Financials) could remain flat for the Nifty at 19.8 per cent (up 10 bps).

"Earnings growth is anticipated to be driven, once again, by domestic cyclicals, such as auto and BFSI, which are expected to post 20 per cent and 15 per cent YoY growth, respectively. Conversely, earnings growth is expected to be weighed down by global cyclical, such as oil and gas and metals, which are anticipated to decline 6 per cent and 12 per cent YoY, respectively," said Motilal Oswal. The brokerage firm believes healthcare (+33 per cent) and cement (+32 per cent) may report robust YoY earnings growth.

Consumers (+7 per cent), capital goods (+5 per cent), and technology (+4 per cent) may report moderate YoY growth. "Our FY24 Nifty EPS (earnings per share) remains stable at ₹980, while the FY25 EPS has witnessed a cut of 1 per cent to ₹1,132. We expect the Nifty EPS to grow 21 per cent and 16 per cent in FY24 and FY25, respectively," said Motilal Oswal.

Kotak Institutional Equities expects Q4FY24 net profits of the BSE-30 index to increase 5 per cent YoY and 8 per cent QoQ and for the Nifty 50 Index to increase 4 per cent YoY and 7 per cent QoQ. "We estimate EPS of the BSE-30 index at ₹3,121 for FY24 and ₹3,551 for FY25 and of the Nifty-50 index at ₹989 for FY24 and ₹1,088 for FY25," said Kotak. Also Read: Q4 results: Largecaps may give some surprises in FY25 Experts believe the banking sector may report mixed numbers amid net interest margin (NIM) pressure, and steady loan growth but softer deposit growth and cost pressures.