Banks to lead earnings growth in Q4; Nifty50 firms' profit may grow by 23%

Earnings of Nifty50 firms may grow by 23.6% in March quarter despite 10-quarter low revenue growth

Brokerages are expecting a sharp uptick in corporate earnings during the January-March 2019 quarter on the basis of a turnaround in commercial banks such as State Bank of India and Axis Bank.

The combined net profit of Nifty 50 companies is expected to grow by 23.6 per cent year-on-year (YoY) during Q4 FY19 against 4.4 per cent growth in the corresponding period a year ago and 7.3 per cent growth in the December 2018 quarter.

The demand slowdown is, however, expected to take a toll on India Inc’s top line growth with brokerages expecting a 9.6 per cent YoY growth