L&T, Airtel, Tata Consumer, GAIL, IOC Q2 previews: What brokerage expect from these bluechips

A handful large-cap companies, including Nifty constituents, are set to announce their results for the quarter ended on September 30, 2023. The list includes names like Larsen & Toubro Ltd (L&T), Bharti Airtel Ltd, GAIL (India) Ltd, Indian Oil Corporation Ltd and Tata Consumer Products Ltd. Here's what various brokerage firms expects from these companies:

Bharti Airtel
Prabhudas Lilladher expects Bharti Airtel to report a 29 per cent YoY and 5 per cent QoQ fall in the adjusted net profit at Rs 1,534.8 crore in Q2FY24. It sales may be seen at Rs 38,517 crore, up 12 per cent YoY and 3 per cent QoQ. Ebitda is seen at Rs 20,028.8 crore, rising 14 per cent YoY and 2 per cent QoQ, with margins coming in at 52 per cent.

"We have factored in net subscriber addition of 3 million and ARPU of Rs 203 per month in Q2. Africa, enterprise and home services will show steady growth ahead, while DTH business will be muted," it said.

BNP Paribas expects double-digit YoY revenue growth in India mobile, which should partly offset currency depreciation in Nigeria. It sees revenue at Rs 34,526.8 crore with an Ebitda of 17,593.8 crore and Ebitda margins at 51 per cent for the quarter.

Larsen & Toubro Q2 results
Phillip Capital expects L&T's order inflows at more than Rs 85,000 crore, factoring in three orders which includes two orders from Aramco for setting up a gas processing plant and its main process units estimated at $ 2.9 billion, while the second contract to construct gas compression units is worth $1bn and mega order from the Mumbai Metropolitan Region Development Authority to design and construct an underground road tunnel.

Phillip Capital sees L&T's revenue at Rs 50,278.3 crore, up 18 per cent year-on-year (YoY) basis and 5 per cent quarter-on-quarter (QoQ) basis led by core/ non-core biz revenue growth. EBITDA is seen at Rs 5,284.3 crore, but EBITDA margins remain flat QoQ. PAT for L&T may rise 2,849.1 crore, jumping 28 per cent YoY and 14 per cent QoQ.

“We expect 24 per cent YoY improvement in core EPC revenues as we bake in improved construction activity across projects during the quarter. This implies 39 per cent YoY growth for 1HFY24 for relevant government projects of L&T versus 40 per cent YoY growth over 5MFY24 for the underlying aggregate capex for key customers,” said Kotak Institutional Equities.

"We expect core E&C business EBITDA margin at 8.5 per cent, up by 40 bps YoY. We expect the improvement in margin to be driven by lower commodity prices," it added.

Indian Oil Corporation Q2 results
Prabhudas Lilladher sees Indian Oils sales at Rs 2,34,780 crore, growing 13 per cent YoY and 19 per cent QoQ. Ebitda is likely to come in at 17,180, surging 243 per cent YoY but falling 23 per cent QoQ, with margins coming in at 7.3 per cent, with PAT at 9,640 crore, falling on both QoQ and YoY. "IOC is likely to report weak operating profit due to decline in marketing margins, We estimate a GRM of $12.4/bbl," it said.

GAIL Q2 results
Systematix Institutional Equities expects GAIL to report a revenue of Rs 35,140 crore, falling 9 per cent YoY but up 9 per cent QoQ. EBITDA coming in at Rs 2,617.5 crore, surging 48.3 per cent YoY, thanks to EBITDA margins expanding 286 bps to 7.4 per cent. Net profit came in at Rs 1,872.3 crore, 22 per cent YoY and 32.6 per cent QoQ.

Tata Consumer  Q2 results
StoxBox expects Tata Consumer Products to register a high single-digit revenue growth this quarter, with its salt business continuing on its robust growth trajectory and expected signs of recovery in tea volumes.  On the international business front, the low base of last year along with flow through of price hikes taken in the previous quarters is to yield higher revenue growth and margins.

"However, we continue to keep an eye on signs of demand recovery in its international business. On the operational front, the company stands to benefit from the fall in commodity prices of its key raw materials with its margins expected to expand by around 80 bps YoY. However, the company’s higher focus on its A&P expenses can lead to some moderation sequentially," it said.

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