BSE 500 earnings snapshot: Which sectors are driving India Inc.’s growth?

The December 2024 earnings season for India Inc. highlights strong momentum across multiple sectors. Data available from ACE Equity shows that the combined profit after tax (PAT) of BSE 500 stocks witnessed a significant surge in December 2024 (Q3FY25), reaching Rs 4.09 lakh crore.

This marks a 15% quarter-on-quarter (QoQ) growth compared to Rs 3.57 lakh crore in Q2FY25 (September 2024) and an 18% year-on-year (YoY) growth from Rs 3.47 lakh crore in December 2023. The earnings trend showcases robust sectoral performance, with some industries experiencing extraordinary growth, while others exhibiting subdued or negative trends.

Top Performing Sectors

Telecom: The telecom sector, which has eight listed stocks in the BSE 500 index, posted exceptional PAT growth, surging by 229% QoQ to Rs 18,839 crore in the quarter ended December 2024 and a staggering 419% YoY from Rs 3,628 crore in December 2023.

Infrastructure: This sector includes 13 companies in the BSE 500. With a combined PAT of Rs 11,625 crore, these 13 stocks recorded an impressive 108% QoQ profit growth and 136% YoY growth. Increased government spending and private investments in infrastructure likely contributed to this remarkable performance.

Construction Materials: This sector comprises 16 stocks in the BSE 500 index, of which 12 are cement manufacturers. It posted the highest QoQ PAT growth of 309% to Rs 6,292 crore, indicating strong demand and pricing power. The YoY PAT growth stood at 20%.

Insurance: The insurance sector, with nine stocks, experienced a robust 44% QoQ growth, reaching Rs 14,793 crore in Q3FY25, along with a 25% YoY increase.

Chemicals: There are 39 chemical stocks in the BSE 500. With a combined PAT of Rs 8,104 crore in Q3FY25, the chemicals sector saw a 23% QoQ growth and a 78% YoY increase.

Automobile & Ancillaries: The 42 stocks in this sector recorded a 16% QoQ PAT growth, reaching Rs 25,849 crore. However, YoY PAT growth was moderate at 2%.

Moderate and Declining Sectors

Banking: The banking sector, comprising 29 stocks, recorded a PAT of Rs 98,411 crore in Q3FY25. Despite achieving a 21% YoY PAT growth, the sector experienced a 3% QoQ decline in earnings.

Healthcare: The healthcare sector includes 45 stocks. It posted an 18% YoY PAT growth, reaching Rs 15,628 crore, but saw a 3% QoQ decline.

IT: The IT sector, with 32 companies, saw its PAT decline by 1% QoQ to Rs 33,464 crore. However, it still managed a 12% YoY increase, reflecting a stable demand environment but potential cost pressures.

FMCG: The FMCG sector, which includes 29 stocks, recorded a marginal 1% QoQ decline to Rs 13,363 crore in Q3FY25 but achieved a 5% YoY PAT growth, indicating stable demand conditions.

Mining: The mining sector, comprising four stocks, recorded a combined PAT of Rs 10,417 crore. This sector experienced a 41% QoQ growth but a 10% YoY decline.