More than 85 percent of the Nifty50 constituents and about 60 percent of the companies from the BSE500 universe have declared their earnings for the quarter ended September 2022 so far. It's been a bag of mixed fortunes for India Inc as companies with strong domestic plays have outperformed those that were impacted by adverse global macros.
At the same time, a rising interest rate scenario augurs well for banks, which posted handsome growth while pent-up demand coupled with strong festival season demand propelled the performance of auto companies.
In fact, the earnings growth for the current quarter was led by banks and autos while the traditional growth engine, IT services sector, delivered mid-single-digit growth. However, global factors dented sentiments for sectors like metals and oil and gas which, along with cement and consumer durables, were the biggest drags on the earnings on the BSE500.
According to a report from brokerage Motilal Oswal Financial Services, as on November 1, 32 of the Nifty50 companies had reported their earnings and their profits have dipped 2 percent year-on-year (YoY), led by global cyclicals. “Excluding the global cyclicals, profits would have grown 25 percent YoY while, excluding the banking, finance services and insurance (BFSI) companies, Nifty profits would have decreased 14 percent YoY,” the report said.