Nifty topline may dip up to 25% YoY; banks, telecom, agrochem silver lining

In IT services, one can expect a sequential revenue decline of 5-10 per cent due to demand compression from direct hit verticals and supply-side factors.

While there is near unanimity in expectations about the first quarter of the fiscal year 2020-21 (Q1FY21) results being a washout for most sectors, there could be some sectors / companies that may still not disappoint as others. The little available macro data points to this.

We expect a strong Covid-19 prompted overhang on Q1FY21 earnings. On a year-on-year (YoY) basis, Nifty topline can fall 20-25 per cent, operating profit could be down nearly 10 per cent and net profit, or profit after tax (PAT), down by about 25 – 28 per cent. Sectors optically doing well and recording YoY growth