The fiscal third-quarter earnings season continues with significant announcements from IT services companies, major conglomerates, and now banking heavyweights. While the spotlight initially focused on IT services like TCS, Infosys, HCL Tech, Tech Mahindra, and Wipro, attention has now shifted to the banking sector.
Banking Sector Outlook
This week, key players like HDFC Bank and ICICI Bank are set to release their Q3 FY25 results. According to Elara Capital, the banking sector earnings are anticipated to display weaker trends with:
- Softer loan growth due to modest system-level loan and deposit growth.
- NIM pressure resulting from rising funding costs and interest income reversals.
- Higher slippages in unsecured loans, microfinance (MFI), and Kisan Credit Card (KCC) loans, attributed to seasonal factors.
- Subdued recovery trends, leading to potential increases in net slippages.
Broader Market Projections
JM Financial predicts modest performance for the Nifty50, with PAT growth projected at 5.8% YoY, while ex-BFSI growth is weaker at 2.1% YoY.
Key Earnings Announcements Scheduled for This Week
January 20 (Monday):
- Zomato
- Oberoi Realty
- One 97 Communications (Paytm)
- L&T Finance
- Karur Vysya Bank
- Jammu and Kashmir Bank
- Indian Railway Finance Corporation
- Indian Overseas Bank
- IDBI Bank
- Central Bank of India
- APL Apollo Tubes
- ICICI Securities
January 21 (Tuesday):
- UCO Bank
- KEI Industries
- Tata Technologies
- PNB Housing Finance
- Indiamart Intermesh
- India Cements
- South Indian Bank
- Servotech Renewable Power System
- Aditya Birla Real Estate
- Dalmia Bharat
- Cyient DLM
- Eureka Industries
Industry Trends
While India Inc.’s Q3FY25 performance remains to be fully revealed, this week’s results will provide further clarity on sector-specific dynamics, including the banking, real estate, IT, and renewable energy sectors.
