SBI, ITC, GAIL and Tata Elxsi shares in focus ahead of Q4 results. Here are earnings estimates

Dozens of companies will report their March quarter results today including Nifty constituents ITC and State Bank of India (SBI), GAIL and Tata Elxsi. Among these companies, SBI is expected to report the strongest year-on-year (YoY) profit growth of up to 70 per cent but GAIL's profit may more than halve, analysts estimated. Tata Elxsi is seen reporting over 20 per cent growth in bottom line; ITC may log double digit growth in Q4 profit, analysts said.

SBI Q4 results preview

State Bank of India (SBI) is likely to clock a profit growth of 40-70 per cent for the March quarter on year-on-year(YoY)  basis on healthy fee income and a sharp fall in provisions in a seasonally strong quarter for the PSU bank. Net interest income (NII) is seen rising 20-30 per cent while net interest margin (NIM) is expected to expand with MCLR (marginal cost of funds) repricing, analysts said who see credit cost for the state run bank staying below 1 per cent. Loan growth may come in lower than other large banks, analysts warned. All eyes would be on opex, traction in deposits, and increase in deposit costs.

ITC Q4 results preview

Analysts expects ITC to report double digit growth in profit on a 3-6 per cent rise in sales. Hotel business may do well on strong hotels bookings, cigarette business may log 13-14 per cent YoY volume growth, but agri business may clock a double digit de-growth. Paperboards, paper & packaging business is seen reporting flattish growth, analysts said

Motilal Oswal Securities expects profit at Rs 4,730 crore, up 12.8 per cent YoY. Sales are seen at Rs 16,050 crore, up 3.3 per cent. Nuvama estimated profit at Rs 4,856 crore, up 15.9 per cent. It sees sales rising 5.1 per cent YoY to Rs 16,324 crore. ICICI Securities sees net profit at Rs 4,911.8 crore, up 17.2 per cent YoY.

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GAIL Q4 results preview

GAIL is expected to report a more than 50 per cent drop in profit, even as revenues may grow in double digits for the quarter. Sequential numbers though would see recovery after a tepid Q3, analysts said. HDFC Securities sees profit for the March quarter at Rs 1,200 crore, down 54.9 per cent YoY. It sees sales for GAIL at Rs 32,800 crore, up 21.8 per cent. 

"We expect GAIL to report Ebitda of Rs 1,900 crore, up 40 per cent QoQ, owing to profitability in LPG and Liquid Hydrocarbons (LHC), gas trading segments, higher transmission volume, and improvement in petchem capacity utilisation," it said.

Sharekhan sees profit at Rs 916 crore, down 65.9 per cent YoY. It sees sales growing 34 per cent YoY to Rs 36,166 crore. "After a dismal performance in Q3FY23, GAIL would see sharp improvement in its performance with lower petchem loss, a recovery in gas transmission/market-segment Ebitda," it said adding that a steep fall in spot LNG prices would drive sequential earnings recovery for GAIL.

Tata Elxsi Q4 results review

Sharekhan expects this Tata group firm to report 21.5 per cent YoY rise in profit at Rs 194 crore from Rs 160 crore YoY. Revenue for the quarter is seen rising 24.5 per cent YoY to Rs 848 crore from Rs 682 crore YoY. The brokerage expects sequential revenue growth of 2.5 per cent in constant currency terms. Margin is seen at 30.7 per cent against 32.5 per cent YoY.

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Also read: State Bank of India Q4 results: Profit surge likely in seasonally strong quarter, loan growth to lag peers