Q3 results previews: PB Fintech, Mahindra & Mahindra, BHEL, Info Edge

PB Fintech may deliver 44 per cent growth in insurance premium and 59 per cent YoY growth in loan disbursals, said JM Financial, as it expects revenue for Paisabazaar to grow at 71  YoY and Policybazaar 59 per cent.

BHEL may log Rs 170.80 crore loss against a profit of Rs 14.20 crore in the year-ago quarter. Revenue is seen rising 11.1 per cent YoY to Rs 5,706 crore compared with Rs 5,135.80 crore.

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A host of companies including Mahindra & Mahindra (M&M), PB Fintech, BHEL and Info Edge will announce their December quarter results today. M&M and Info Edge are seen reporting strong profit growth, but BHEL is seen reporting losses for the quarter. Info Edge may log narrowing of losses in the December quarter, analysts said.

M&M Q3 results preview

M&M is expected to log 26 per cent YoY surge in standalone profit at Rs 1,705 crore compared with Rs 1,353 crore in the year-ago quarter, said brokerage Prabhudas Lilladher. Sales are seen rising 42.5 per cent to Rs 21,712.90 crore. Margin is seen at 12.7 per cent. "We expect 4 per cent increase in revenue largely led by 3 per cent increase in volumes and change in product mix. Ebitda margins to improve led by easing RM costs and higher share of SUVs in the mix. PAT growth YoY to be lesser than Ebitda growth, considering lower other income (down 50 per cent) and higher depreciation (up 20 per cent)," it said.

Emkay Global sees profit for M&M at Rs 2,011 crore, up 48.6 per cent. The brokerage sees revenue rising 40.4 per cent YoY to Rs 21,407 crore. This brokerage sees margin at 13.7 per cent.

BHEL Q3 results preview

Nomura India said it estimates a recovery in BHEL's gross margins on sequential basis, leading to lower Ebitda loss estimate. Commentary on thermal power ordering is the key watchable for the stock, it said. 

Kotak Institutional Equities sees BHEL's Q3 loss at Rs 170.80 crore against a profit of Rs 14.20 crore in the year-ago quarter. Revenue is seen rising 11.1 per cent YoY to Rs 5,706 crore compared with Rs 5,135.80 crore.

"We expect 11 per ent YoY improvement in revenues and note that normalisation of execution has already happened in 1HFY23. We expect EBITDA to remain negative on weak executable backlog and stiff raw material prices. We expect employee cost to remain elevated. Other expenses in previous quarters had the benefit of provision write-back and we expect other expenses also to move up in 3QFY23," Kotak said.

Info Edge Q3 results preview

JM Financial expects Info Edge's standalone business billings’ trends to normalise here-on and forecast 13 per cent YoY growth in December quarter against 30-70 per cent YoY growth reported in the

previous six quarters. This is mainly due to expectation of sharp deceleration in the Recruitment (Naukri) business billings’ growth to 15 per cent YoY against 40-75 per cent YoY over Q1FY22-Q2FY23, it said.

"In 99acres business, we expect 17.5 per cent YoY billings’ growth due to continued strong underlying demand in the real estate sector for new and resale homes, in addition to rental properties. However, Jeevansathi billings are likely to dip on a YoY basis due to recent strategy changes. Robust built up of deferred revenue till Q2 across key verticals should ensure strong sequential standalone business revenue growth of 36 per cent YoY in 3Q, with EBITDA margin improving 580 bps YoY to 34.8 per cent due to growing revenue share of high-margin Naukri business," it said.

It sees profit at Rs 173.60 crore, up 46.4 per cent.

PB Fintech Q3 results preview

JM Financial expects PB Fintech to deliver 44 per cent growth in insurance premium and 59 per cent YoY growth in loan disbursals while it expects  while it expects the revenue for Paisabazaar to grow at 71  YoY and Policybazaar to grow at 59 per cent due to base effect and continued rise in insurance and credit penetration.

"We expect Policybazaar core online business premium to grow marginally while the offline business premium could be flat due to a stronger focus on profitability over growth. This should drive adj. EBITDA margin improvement of 130 bps over 2QFY23 to reach minus 7.7 per cent. We anticipate core Policybazaar vertical to show improvement in contribution margin driven by better conversions through omni-channel customer support," it said.

The brokerage sees losses for PB Fintech narrowing to Rs 150 crore.

 

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