Axis Bank Q3 results today. Earnings call timing; 50% profit growth, NIM estimates & more

Axis Bank is all set to announce its December quarter results today. The company will host an earnings call with analysts and investors at 18:30 pm (IST) post results, wherein the senior management of the private lender will discuss financial results with participants. If one goes by analysts, a 48-57 per cent growth in profit is all likely, thanks to healthy growth and contained provisions. Net interest income (NII) growth may come in 25 per cent or above, analysts said, adding that net interest margin (NIM) may stay stable or expand marginally.   

Slippages may stay flattish sequentially while recoveries could moderate a tad, said Emkay Global which sees net profit for Axis Bank at Rs 5,357.60 crore for the December quarter, up 48.20 per cent YoY. It sees NII for the quarter at Rs 10,796 crore, up 24.80 per cent YoY. NIM is seen at 4 per cent, the same as September quarter but higher than 3.5 per cent in the same quarter last year. 

Emkay Global sees profit soaring 55.3 per cent YoY to Rs 5,610 crore and NII climbing 28.70 per cent YoY to Rs 11,130 crore. The brokerage expects expect credit costs and slippages to remain stable; it sees margin expanding and feels traction in deposits and moderation in cost ratios will be closely monitored.

Nuvama sees provisions more than doubling to Rs 1,400 crore on a sequential basis. It would be 4.9 per cent higher over year-ago's Rs 1,330 crore provision, Nuvama said. Slippages are seen coming in at 2.05 per cent of lagged loans against 2.6 per cent YoY. NIM is seen at 4.22 per cent while profit and NII growth is expected at 57 per cent and 31.7 per cent, respectively. 

Sharekhan expects Axis Bank to log a 50 per cent YoY surge in net profit at Rs 5,422 crore compared with Rs 3,614 crore in the corresponding quarter last year. NII is seen jumping 25.5 per cent YoY to Rs 10,858 crore from Rs 8,653 crore in the same quarter last year. Pre-provision operating profit is seen climbing 32.5 per cent YoY to Rs 8,166 crore from Rs 6,162 crore YoY.

Sharekhan said advances for the bank may grow 16 per cent YoY, led by retail and SME. NIMs are seen expanding sequentially. Key monitorables would be the progress of the Citi portfolio and improvement in operating profit growth further led by some improvement in cost ratios, it said.

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