Brokerages expect V-shaped recovery in corporate earnings in second qtr

Nifty50 firms' combined net profit likely to jump 24%, against 50% contraction in Q1

Led by a big positive swing in Bharti Airtel’s net profits, brokerages expect V-shaped recovery in the combined earnings of Nifty50 companies in the July-September quarter (second quarter, or Q2) of 2020-21 (FY21).
 
According to brokerage estimates, Nifty50 companies’ combined net profit is expected to jump 24 per cent year-on-year (YoY) in Q2FY21, reversing the trend of an earnings contraction of the previous two quarters. In comparison, index firms’ combined net profit has nearly halved YoY in Q2FY21 and fourth quarter of 2019-20, while it was down 9.5 per cent YoY in Q2 of 2018-19 (FY19).
 
The index