Q3 earnings preview: Nifty profit growth pegged at 10%, best in 5 quarters

Combined net profit of 50 index firms estimated at Rs 1.14 trillion, led by commodity producers

After a good July-September quarter (second quarter, or Q2) that saw profit growth return to positive territory, brokerages now expect double-digit growth in the combined net profit of Nifty50 companies in the October-December 2020 period (third quarter, or Q3) of 2020-21 (FY21).

This growth is led by a big jump in the net profit of commodity producers in sectors such as metals and mining, crude oil, refining, and cement, among others.

The index companies are expected to report a combined net profit of Rs 1.14 trillion for Q3, up 10 per cent from Rs 1.04 trillion a year ago. If