In addition, a pickup in consumption, especially rural demand, will also boost earnings. While the pressure on operating performance of manufacturing firms was expected, and many companies did report a sequential decline in operating profits due to rising input costs, analysts said volume growth remained strong and cost pressures may start easing by the second half as commodity prices have softened. We believe the September quarter will be a key quarter to watch out for in terms of earnings trajectory," Jain said.ĭeepak Jasani, head of retail research at HDFC Securities, said, “As inflationary pressures are easing, there is hope of better performance in H2FY23, provided we do not have any other negative trigger by then."
MANPOWER ENGINEERING UPGRADE
“We believe that earnings upgrade has started happening in bits and pieces. Other than IT services, there is incrementally no growth pressure, he said. The earnings downgrade cycle is clearly behind us, said Manish Jain, fund manager, Coffee Can PMS, Ambit Asset Management. Meanwhile, some mid-cap stocks and the engineering sector have seen upgrades, factoring in softer commodity prices.Īmong Nifty 50 companies, five have seen FY24 earnings estimates being upgraded, 21 have seen earnings estimates being maintained, and only four have seen downgrades, said Amnish Aggarwal, head of research, Prabhudas Lilladher Pvt. However, the IT sector has seen a downgrade due to moderation in new deal wins and a rise in manpower and travel costs. The first quarter has seen more upgrades than downgrades, said Mitul Shah, head of research at Reliance Securities.
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