India Inc reported better-than-expected profits in the June quarter, driven by strong performances in banking, metals, technology, and automakers, despite global and domestic headwinds, signalling resilience amid a challenging economic backdrop.
India Inc’s June-quarter earnings have come in stronger than expected, with banks, metals, technology and automakers helping offset weakness in oil marketing companies, according to a report from Motilal Oswal Financial Services. The brokerage said profits for the sample it tracked rose 2% year on year overall, even though elevated crude prices weighed on some sectors, and earnings excluding oil marketing companies increased 17%. It said the result pointed to underlying corporate resilience despite a difficult cost backdrop.
The broad tone was also upbeat in early-results data elsewhere. Business Standard reported that the first batch of 156 companies delivered net profit growth of 19.4% in the April-June quarter, the fastest pace in 11 quarters, with banks, Reliance Industries, IT services and metals leading the advance. Financial Express separately said a sample of 155 companies recorded 15% profit growth and 17.4% revenue growth, although rising input costs and a weaker global backdrop were beginning to curb momentum.
Sector performance has been uneven, but metals stood out. Motilal Oswal said banking and financial services earnings rose 20%, metals 53%, technology 11% and automobiles 7%, while oil marketing companies, cement, aviation and healthcare dragged on the aggregate. That strength was visible in company-level results too: Steel Authority of India reported a sharp increase in quarterly profit, with net profit more than doubling year on year, while IDFC First Bank posted a 153% jump in consolidated profit and Infosys reported a 12.3% rise in profit alongside 14% revenue growth.
The brokerage said large-cap earnings rose 6%, while mid-cap profits fell 31% because of losses in the oil marketing segment. Excluding those companies, mid-cap earnings were up 25%, and small caps posted the strongest growth at 32%, helped by financials and an easier comparison base. Motilal Oswal also said downgrades to earnings estimates are slowing, but warned that geopolitical risks, high energy prices and a heavy pipeline of initial public offerings and fundraisings could keep markets volatile.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
