India's corporate earnings and revenue are expected to rebound in the quarter ended September as consumer confidence and spending improved after the curbs to contain a deadlier second wave of the Covid-19 pandemic eased.
The Bloomberg consensus earnings estimates for 200 of the BSE500 companies indicate a sequential jump of more than 18% in aggregate net profit at Rs 1.22 lakh crore in the July-September FY22 period. Their cumulative sales revenue is expected to rise 1.3% over the preceding three months to Rs 15.98 lakh crore.
India Inc. had witnessed a sequential decline of 8.9% and 13.2% in its top and bottom line, respectively, in the quarter ended June. Emergence from the local lockdowns revived demand in Asia's third-largest economy.
Analysts have upgraded adjusted earnings per share estimates for 111 of the 152 companies in the BSE500 Index in the last three months, and downgraded 41, Bloomberg data showed. 81 saw an EPS upgrade of more than 5%.
Rising commodity prices are likely to weigh on India Inc.'s margins. The Bloomberg Commodity Index that covers prices of oil, natural gas, copper, zinc, and other commodities has gained more than 6% in the three months through September. It's, however, lower than the 12.7% increase in the April-June period.
BloombergQuint compiled a list of companies that are likely to see the highest revenue and adjusted EPS growth sequentially in the July-September period.
Selection Criteria
BSE500 companies.
Tracked by at least four analysts.
10 companies with best sequential growth in revenue.
10 companies with best sequential growth in adjusted EPS.
Here's what analysts forecast for the companies likely to post the best revenue and EPS growth in the second quarter.
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