 "Sensex firms' profit likely to fall: BofA-ML")
Mirroring the previous three quarters, capital markets are likely to see tepid earnings for the July-September quarter, with an expected 3.7 per cent fall in aggregate profit of the 30 Sensex companies, a report by Bank of America Merill Lynch (BofA-ML) says.
Of the 30 companies, 12 are expected to show a contraction in profits. Moreover, aggregate revenue of Sensex companies is likely to contract 9.1 per cent during second quarter of the fiscal, compared with the year-ago period. This would be the fourth straight quarter decline in sales, the report said.
"Excluding financials, aggregate profit is expected to fall by 3.7 per cent... aggregate sales for Sensex companies is expected to contract for the fourth consecutive quarter at (-) 9.1 per cent year, a first ever occurrence," BofA said."The worrying aspect of the earnings is that even excluding commodities, sales growth is expected to remain muted at 3.5 per cent," it added.
Among Sensex companies, banks like HDFC Bank, SBI, Axis Bank are expected to lead the earnings growth. Besides, industrials (Larson & Tourbo) and Information Technology (TCS), Tata Steel would also reflect positive earnings.
Of the 30 companies, 12 are expected to show a contraction in profits. Moreover, aggregate revenue of Sensex companies is likely to contract 9.1 per cent during second quarter of the fiscal, compared with the year-ago period. This would be the fourth straight quarter decline in sales, the report said.
"Excluding financials, aggregate profit is expected to fall by 3.7 per cent... aggregate sales for Sensex companies is expected to contract for the fourth consecutive quarter at (-) 9.1 per cent year, a first ever occurrence," BofA said."The worrying aspect of the earnings is that even excluding commodities, sales growth is expected to remain muted at 3.5 per cent," it added.
Among Sensex companies, banks like HDFC Bank, SBI, Axis Bank are expected to lead the earnings growth. Besides, industrials (Larson & Tourbo) and Information Technology (TCS), Tata Steel would also reflect positive earnings.