Newsletter December, 2023

In India, Q2FY24 earnings season saw an overall in-line performance, with wide divergences across sectors and companies. Nifty posted strong 20% YoY earnings growth in 2QFY24. The key theme of the quarter was cost deflation in inputs, aiding companies in boosting profitability despite limited year-on- year revenue growth. This benefit from lower commodity costs is mostly exhausted, signalling that future earnings growth will rely on increased sales volumes.