Q4 results review: Banks, autos drive earnings; Nifty 50 delivers strong beat with 12% YoY net profit growth
Tata Motors, and Coal India, contributed 72% of the incremental YoY accretion in earnings. Ex-Metals and Oil & Gas, Nifty’s earnings grew 16% YoY.Read Election Results 2024 Live Updates hereNifty earnings per share (EPS) for FY24 increased 2.6% to ₹1,005 from ₹980 earlier, largely fueled by notable upgrades in ONGC, Coal India, and SBI. EPS for FY25E and FY26E also experienced upward revisions of 0.8% each to ₹1,142 and ₹1,327, according to brokerage firm Motilal Oswal.
It now expects Nifty EPS to rise 14% and 16% YoY in FY25 and FY26. “India is currently experiencing a mini-Goldilocks moment due to solid macroeconomic conditions, healthy corporate earnings, peaking interest rates, moderate inflation print, and ongoing policy momentum. The Q4FY24 corporate earnings have exceeded our expectations, with the BFSI and Automobile sectors driving the overall performance.
The Healthcare and Capital Goods sectors reported healthy earnings growth, providing further fillip to the overall earnings," Motilal Oswal said in a report.The margin tailwinds in the quarter ended March 2024 have ebbed from a high base, necessitating a recovery in revenue growth to boost earnings going forward. Nifty is trading at a 12-month forward P/E of 19.2x, at a 6% discount to its own long-period average (LPA). Also Read: Why is Indian stock market falling today? — explainedBanks: The banking sector reported a healthy performance in the March quarter, fueled by robust business growth and controlled provisions.
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