ENA Sectors 2024-10-08 14:38:39 <p><span style="font-size:14px"><strong>New Delhi, Oct 8 (KNN) </strong>India Inc is poised to report a 10% year-on-year rise in net profits for the September quarter, analysts estimate.</span></p> <p><span style="font-size:14px">While the overall headline figures may seem muted due to expected losses in the oil marketing sector, several industries are likely to show robust performance.</span></p> <p><span style="font-size:14px">Oil marketing companies (OMCs) are predicted to suffer steep declines, significantly impacting the broader profit growth.</span></p> <p><span style="font-size:14px">However, key sectors such as automobiles, IT services, pharmaceuticals, and retail are expected to perform relatively better.</span></p> <p><span style="font-size:14px">For instance, the Nifty50 companies are projected to report a 3.7% year-on-year profit growth, with the BSE 30 showing a 5.3% rise.</span></p> <p><span style="font-size:14px">In the automobile industry, demand has been strong, driven by rising average selling prices and a richer product mix.</span></p> <p><span style="font-size:14px">Despite some price cuts, car manufacturers are benefiting from lower raw material costs, helping boost margins and revenue.</span></p> <p><span style="font-size:14px">However, commercial vehicle manufacturers have seen weaker demand, especially as discounts in the segment widen.</span></p> <p><span style="font-size:14px">IT services are anticipated to have a mixed performance, with strong results from companies serving the banking, financial services, and insurance (BFSI) sectors due to higher spending. On the other hand, firms with significant exposure to retail may face slower growth.</span></p> <p><span style="font-size:14px">Currency depreciation could boost margins for IT players, especially with the rupee weakening against both the dollar and the pound.</span></p> <p><span style="font-size:14px">Pharmaceutical companies are set to see positive growth, driven by stable prices for US generics and strong demand across other markets.</span></p> <p><span style="font-size:14px">In contrast, consumer staples manufacturers might show weaker results despite price hikes, with volumes remaining sluggish and some facing challenges from inventory corrections.</span></p> <p><span style="font-size:14px">The banking sector is expected to report subdued performance as credit growth slows, with margins shrinking due to re-pricing of deposits.</span></p> <p><span style="font-size:14px">Cement manufacturers are also likely to struggle, with muted demand and a drop in sequential realisations further dampening their earnings.</span></p> <p><span style="font-size:14px">Overall, while certain sectors like automobiles, IT, and pharmaceuticals are expected to report solid numbers, the challenges faced by the oil and banking sectors could limit the overall profit growth for India Inc in Q2.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 39526 https://knnindia.co.in/news/newsdetails/sectors/india-inc-set-to-report-10-profit-growth-in-q2-despite-oil-sector-challenges 2024-10-08 14:38:39 knnindia.co.in