Nifty 50 companies likely to log strong double-digit growth in Q2
Revenue and net profit of Nifty 50 companies are projected to grow by nearly 20% year-on-year. Analysts note that performance is driven by sectors like automobiles, banking, and oil. Operating margins, however, might contract slightly due to input cost pressures and inflation. Key sectors show varied conditions, balancing strong demand against potential challenges. Overall, medium to long-term…
Nifty 50 companies are projected to experience robust double-digit growth in the second quarter, according to financial estimates. Revenue and net profit growth are anticipated to be 19.9% and 22.3%, respectively, driven by sectors such as automobiles, banking and finance, metals, and oil and gas. These figures are bolstered by lower revenue and profit growth from the previous quarter.
Zeeze Azeez, Joint CEO of Anand Rathi Wealth, and Gautam Duggad, MD and Head of Sales at Motilal Oswal Financial Services, both express optimism about the broader earnings outlook, citing improving domestic demand, strong credit growth, government spending, and private capital expenditure recovery. However, the operating margin is expected to slightly decrease to 21.9% from the previous year, due to inflationary pressures from input costs, wage inflation, and higher crude prices.
Despite short-term challenges, analysts remain confident in the medium-to-long term growth trajectory, emphasizing the potential of growth-oriented businesses that are scaling up and strengthening their competitive positioning.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
