look news india
Mumbai: In the last quarter of financial year 2024, the profit growth of Nifty 50 companies is seen to be at the lowest level in five quarters. It is also estimated by various brokerage houses that the companies' revenue growth will be seen in low single digits like the last two quarters.
The combined net profit of Nifty 50 companies grew by 3.10 per cent year-on-year in Q4FY24, which appears to be the slowest growth in the last five quarters.
The companies' combined net profit is estimated at Rs 1.87 trillion in Q4FY2024, compared to Rs 1.82 trillion in Q4FY2023.
This is the third time in the last five quarters that the combined net profit of the companies has exceeded Rs 1.80 trillion, a brokerage house report said.
Net combined sales of the companies are expected to grow 5.40 per cent year-on-year to Rs 14.31 trillion in the quarter ended March from Rs 13.59 trillion in Q4FY23.
Another brokerage firm said the slowdown in profit growth was mainly due to the end of the low raw material price situation and slow pace of revenue growth.
On the other hand, according to another report, earnings growth of listed commercial banks is likely to remain flat in the March quarter as a result of higher credit growth and healthy asset quality.
In the fourth quarter of FY 2024, bank profit is expected to grow by 9.60 percent year-on-year and net interest income by 8.70 percent.
Credit growth in banks is strong and deposit growth is rising. The asset quality in banks is also expected to continue to improve with the pace of new NPA arising slowing down.
