Overview
The December 2024 earnings season for India Inc. has showcased remarkable growth across multiple sectors. According to ACE Equity data, the combined profit after tax (PAT) of BSE 500 stocks surged by 15% quarter-on-quarter (QoQ) in Q3 FY25, reaching Rs 4.09 lakh crore. This also marks an 18% year-on-year (YoY) increase from Rs 3.47 lakh crore in December 2023, reflecting strong sectoral momentum and economic resilience.
Leading Growth Sectors
Several sectors contributed significantly to the overall earnings surge, with industries such as telecom, infrastructure, and construction materials registering exceptional gains.
- Telecom: The telecom sector, comprising eight listed stocks in the BSE 500 index, witnessed an outstanding 229% QoQ PAT growth, reaching Rs 18,839 crore. The YoY growth was even more impressive at 419%, rising from Rs 3,628 crore in December 2023.
- Infrastructure: With 13 companies in the index, the infrastructure sector posted a PAT of Rs 11,625 crore, reflecting a 108% QoQ increase and a 136% YoY rise. Government initiatives and private investment have fueled this rapid expansion.
- Construction Materials: Consisting of 16 stocks, including 12 cement manufacturers, this sector posted the highest QoQ PAT growth at 309%, reaching Rs 6,292 crore. The YoY growth stood at 20%, indicating strong demand and pricing power.
- Insurance: The insurance sector, represented by nine stocks, achieved a 44% QoQ PAT increase, reaching Rs 14,793 crore, alongside a 25% YoY rise.
- Chemicals: With 39 stocks in the BSE 500, the chemicals sector recorded a combined PAT of Rs 8,104 crore, reflecting a 23% QoQ and 78% YoY growth.
- Automobile & Ancillaries: This sector, with 42 listed companies, posted a 16% QoQ PAT growth, reaching Rs 25,849 crore. However, YoY PAT growth remained modest at 2%.
Sectors with Moderate or Declining Growth
While some industries thrived, others experienced either moderate growth or a decline in profits.
- Banking: The banking sector, which includes 29 stocks, posted a PAT of Rs 98,411 crore. Despite a 21% YoY increase, it saw a 3% QoQ decline.
- Healthcare: This sector, with 45 stocks, recorded an 18% YoY PAT growth to Rs 15,628 crore but experienced a 3% QoQ decline.
- IT: The IT sector, comprising 32 companies, faced a slight 1% QoQ PAT decline to Rs 33,464 crore. However, it recorded a 12% YoY growth, indicating stable demand but rising cost pressures.
- FMCG: Including 29 stocks, the FMCG sector reported a minor 1% QoQ PAT decline to Rs 13,363 crore while YoY growth stood at 5%.
- Mining: With four listed stocks, the mining sector posted a combined PAT of Rs 10,417 crore. Despite a strong 41% QoQ rise, it saw a 10% YoY decline, reflecting sectoral fluctuations.
Conclusion
The December 2024 earnings season underscores India Inc.’s growth trajectory, with specific sectors outperforming expectations while others grapple with challenges. Telecom, infrastructure, and construction materials have led the charge, while banking, healthcare, and IT faced short-term setbacks. As India Inc. moves forward, sectoral trends will continue to shape the financial landscape.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult financial professionals before making investment decisions.
