Q3 results preview: Double-digit profit growth for Nifty firms

Corporate earnings for the October-December 2016 quarter are likely to be polarised as commodity producers will benefit from rising prices, while demonetisation will hurt consumption companies. 

The combined net profit of Nifty 50 companies is estimated to grow at the fastest pace in two years. However, the number of index companies expected to report a year-on-year (y-o-y) decline in revenue and net profit will also be the highest in six quarters.

Net profit growth will be largely due to a robust showing by commodity and energy producers, on the back of a global recovery in commodity prices in the quarter.