Emerging segments like electronics manufacturing services, consumer durables, hotels, and real estate are also forecasted to deliver robust YoY growth
The JM Financial coverage universe is poised to report a 5.8 per cent year-on-year (YoY) growth in profit after tax (PAT) for the third quarter of FY25, driven by robust performances in IT services and pharmaceuticals. The report stated, “This quarter will be impacted by furloughs; its impact will be similar to that last year. This is not encouraging given furloughs were deeper and longer last time around. Discretionary spend environment continues to be muted. It is restricted to a few pockets still. 3Q performance is, however, not a reflection of underlying demand. Client budgets, deal wins and uptick in short duration deals would be better gauges.”
It further added, “We expect cross currency headwinds in the quarter, USD’s strength against basket of currencies will lower USD print. We estimate cross currency impact between -1.3 per cent – 0.1 per cent for coverage companies.”
In 3QFY25, sectors like IT services (+9 per cent YoY), infrastructure (+21 per cent YoY), industrials (+11 per cent YoY), pharmaceuticals (+13 per cent YoY), and telecom (+40 per cent YoY) are expected to drive PAT growth. Emerging segments like electronics manufacturing services (EMS), consumer durables, hotels, and real estate are also forecasted to deliver robust YoY growth. However, traditional heavyweights such as oil & gas (-4 per cent YoY), utilities (-15 per cent YoY), metals & mining (-8 per cent YoY), and consumer staples (flat YoY) are likely to underperform.
Source: www.thehindubusinessline.com