The growth momentum is likely to continue from the previous quarter when net profit and net sales had increased by 14.5 per cent and 10.5 per cent, respectively. It expects 12 per cent earnings growth for the Nifty 50 companies.The operating margin of the sample is also likely to remain above 20 per cent for the second quarter in a row. "We expect double-digit growth in net income of automobiles, cement, consumer products, energy, industrials, metals & mining and NBFCs sectors. In comparison with the last year's December quarter, cement prices have moved up by just over 5 per cent to Rs326 per 50-kg bag. The companies will see dual benefit: one, from seasonally strong quarter; and second, from firm prices thus leading to higher profitability.The December quarter was an action-packed quarter for pharma with USFDA giving the highest ever approvals (246) in a single quarter.

Source: Economic Times January 08, 2018 03:00 UTC