Sensex cos to report robust growth in Q4 earnings: Analysts

The country's 30-blue chip companies are likely to post a robust growth in their earnings for the quarter ended March, as increased consumption and domestic demand have helped them increase their revenues.
    
"The fourth quarter fiscal year 2009-10 earnings performance of India Inc. Is all set to go past the Q3 performance, to post even better growth in all parameters," brokerage firm ICICIdirect.Com said in a report.
    
Marketmen expects that the much needed stimulus to the economy played a key role in restoring consumption demand and business and consumer confidence. Looking at the quarterly trends, the shifting engines of growth are becoming more evident.
    
Improved economic activity would see companies from the metals, automobiles and oil & gas sectors reporting better- than-expected numbers, while power, telecom, banking, IT and FMCG companies will act as a drag.
    
"The earnings momentum, which has gathered pace, would accelerate as we move into fiscal year 2011 earnings," Angel Broking added.
    
IT bellwether Infosys will kickstart the fourth quarter earnings season by announcing its results on April 13.
    
"The sequential improvement would be modest, while year-on-year, the performance is likely to be robust, aided by an improvement in overall economic activity," ICICIdirect.Com said.
    
Brokerages feel corporate India is reaping the results of the stimulus packages rolled out by the government, which helped domestic demand improved.
    
"We expect Sensex companies to post earnings growth of 34.5 per cent for Q4, FY'10," Emkay's Research-Institutional Equities Head Ajay Parmar said.
     
Among the Sensex pack, the index heavyweight, Reliance Industries (RIL), is expected to post robust performance, registering 32 per cent yoy and 27 per cent quarter-on-quarter growth on the net profit front, Angel Broking expects.
    
"For 4Q, FY 2010, while we have estimated net sales of the Sensex companies to increase by around 35.6 per cent yoy, we have estimated net profit to register yoy growth of around 26.4 per cent y-o-y," Angel Broking said.