The fiscal fourth quarter earnings season is currently underway, with numerous large, mid, and small cap companies having already released their Q4 results. Major IT companies such as Tata Consultancy Services, Infosys, Wipro, and HCL Tech, as well as other prominent firms like Reliance Industries, Paytm, and SBI, have reported their Q4 performance.
Today, a range of companies including Titan Company, Larsen & Toubro, Biocon, Asian Paints, Britannia Industries, and Canara Bank are scheduled to release their Q4 results. An analysis report by Nuvama predicts that top-line growth for the fourth quarter will be 6% year-over-year (YoY) for their coverage universe, excluding oil marketing companies (OMCs), which is lower than the 8% YoY growth reported in Q3FY25.
The report notes that this will be the eighth consecutive quarter of sub-10% top-line growth. While the top line has been subdued in both FY24 and FY25, the factors contributing to this are different. In FY24, exports and low-end consumption weakened, whereas in FY25, BFSI, discretionary consumption, and capex slowed.
In terms of sector performance, Nuvama forecasts that the top line will be strong in certain sectors such as electronics manufacturing services (EMS), internet, non-banking financial companies (NBFCs), quick service restaurants (QSR), and consumer services, with growth exceeding 15% YoY. Moderate growth of 10-15% YoY is expected in sectors like durables, fast-moving consumer goods (FMCG), pharma, retail, industrials, and non-lending financials. However, sectors like IT, banks, metals, energy, paints, and cement are expected to report weak growth of less than 10% YoY.
As the earnings season continues, investors and analysts will be closely watching the performance of these companies to gauge the overall health of the economy and specific sectors. The Q4 results will provide valuable insights into the trends and growth prospects of various industries and companies, helping investors make informed decisions. With many companies still to report their Q4 numbers, the earnings season is expected to remain in focus in the coming days.