Mid-cap companies have outperformed the large-cap companies in profitability growth rate in the fourth quarter of the financial year 2024-25. According to a report by Elara Capital, while the large-cap companies posted 4 percent year-on-year growth in Q4 profits, the mid-cap companies posted an 18 percent YoY growth in profits for the same period.
In Q4 FY25, large-cap companies have posted Rs 1601 billion PAT. The YoY profit has grown by Rs 63 billion against the base of Rs 1538 billion in Q4 FY24. On the other hand, the mid-cap companies’ profit increased by Rs 77 billion against the base of Rs 436 billion.
Elara Securities on Nifty earnings
Till now, 33 out of 50 Nifty companies have declared their financial results for Q4. The aggregate revenue of Nifty companies is Rs 10,577 billion in Q4. The revenue has increased by 7.8 percent YoY in this quarter. However, PAT for these companies has increased only by 4.3 percent YoY for FY 25 and 8.4 percent for Q4, which shows an uneven performance of various sectors.
While a few sectors of Nifty 50 have posted high PAT, others’ profits have gone down significantly. Metals and cement sectors posted the highest YoY PAT growth of 314 percent and 83 percent, respectively, in Q4. IT and FMCG suffered big in the quarter, with just 0.6 percent and 3 percent YoY PAT growth.
Gagging earnings performance in auto sector
The auto sector, a significant component of Nifty 50, posted a steep decline in its profits in Q4. On the back of just 4.3 percent YoY revenue growth in the quarter, the profit fell by 5.3 percent YoY in Q4.
How did banks fare in Q4?
Banks posted an 8.2 percent YoY growth in PAT in Q4; however, for the complete FY25, the YoY profits were up by just 0.6 percent.
Midcap IT and Auto gain
In contrast to the Nifty 50, the IT and auto sector of Nifty Midcap 150 has posted a much better profit growth in Q4. 73 out of 150 Nifty Midcap 150 companies have released their results till now.
Against the 0.6 PAT growth of the IT sector of Nifty 50, the same sector of Nifty Midcap 150 has posted a good 18.9 percent YoY PAT growth in Q4. Similarly, the auto sector of the NiftyMidcap 150 has posted a YoY PAT growth of 22 percent in Q4.
Other sectors of NIFTY Midcap 150, which posted a better PAT growth than NIFTY 50, are healthcare and utilities. These sectors have posted a 91 percent and 22.4 percent YoY PAT growth in the Q4 of FY25.