Friday is set to be quite a busy one for Dalal Street, as more than 3,000 companies are scheduled to release their earnings.
Among index majors, Coal India, Eicher Motors, Hindalco Industries, Mahindra & Mahindra, and Oil and Natural Gas Corp are set to release their quarterly numbers.
Besides, Life Insurance Corp, SAIL, Biocon, Ipca Labs, Sun TV Network, Fortis Healthcare, Tata Chemicals, Glenmark Pharmaceuticals, Hindustan Copper, RCF, Edelweiss Financial, Shilpa Medicare, Everest Industries, are a few other popular names on the list.
Here’s summarising the expectations on earnings:
Coal India
Consolidated net profit of the coal major is likely to have dropped on a year-on-year (YoY) basis in the September quarter, largely due to lower realisations through e-auctions. However, revenue is seen rising on the back of higher sales volume.
The world’s largest coal producer saw a 13% YoY rise in dispatches to 780 million tonne in the last quarter, but they dropped 7% sequentially due to seasonality factors.
Axis Securities expects revenue to increase by 10% YoY due to higher off-take of coal, but partially offset by lower realisations. It believes that Coal India’s production target of 780 million tonne for FY24 is achievable given the growth in the last quarter.
The management’s guidance on production for the second half of FY24 will be important indicators to look out for, according to analysts.
Adjusted operating margin is likely to decline YoY on account of higher input cost inflation and higher employee expenses.
Hindalco Industries
The company is likely to see a drop in revenue on a YoY basis in the September quarter due to lower aluminium prices and shipments by arm Novelis Inc. Sequentially though, the topline may increase.
Operational performance is seen improving on the back of lower input costs.
Kotak Equities expects revenue to drop by 1% YoY, but rise about 4% sequentially.
Axis Securities expects EBITDA to increase YoY due to lower input energy and coal prices at Indian operations, partially offset by lower EBITDA/tonne at Novelis.
The brokerage expects Novelis’ EBITDA/tonne to gradually improve in the September quarter, assuming higher shipments with the destocking in the key segment easing off.
Eicher Motors
Brokerage PhillipCapital expects the company to report strong 16% YoY growth in revenue, led by volume growth of 10% and realisation growth of 5%. The lower-priced Hunter 350 gained volumes.
Operating margin is likely to expand 249 bps YoY on higher operating leverage and lower raw material costs.
Royal Enfield’s revenue is expected to grow by 18% YoY, led by higher domestic sales partially offset by lower exports.
M&M
M&M’s domestic automotive segment volumes grew 18% YoY in Q2, with passenger vehicles leading the way. Kotak Equities expects a 19% YoY increase in revenues, led by over 20% increase in automotive segment revenue and 18% growth in volumes. Revenue in the tractor segment may be moderate mainly due to a 4% YoY decline in volumes.
Given the company’s focus on high-end product sales, the availability of semiconductors holds the key to uninterrupted supply, analysts said.
ONGC
The state-owned major is seen reporting a double-digit drop in the profit for the quarter, amid a fall in revenue due to lower crude oil prices.
Nuvama Equities estimates a 19% YoY drop in profit, and a 6% decline in revenue. Operating profit, however, is seen rising by 5%.
It expects EBITDA to rise on higher gas realizations and modest production, partially offset by relatively weak crude realization YoY. APM gas prices are up 7% YoY (flat QoQ).
Benchmark crude (Brent) prices have fallen 13% YoY in the quarter, It expects production to remain modest across Crude oil and gas verticals
LIC
While there are no estimates available for the life insurer, gross premium growth and trajectory will be tracked by analysts. Monthly data shared by Life Insurance Council showed that LIC’s premium income dropped by 1.7% on year in October to Rs 15,647 crore. Its market share in monthly new business premium declined for the second consecutive month to 58.3%.
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