Dozens of companies will disclose September quarter earnings today. Among them are Tata Motors, Star Health, Pidilite Industries, Godrej Properties and Piramal Enterprises. Analyst estimates suggest Tata Motors and Star Health may report profits for the quarter. Godrej Properties is seen reporting multi-fold jump in bottom line; Piramal may log double-digit growth while Pidilite Industries may clock a single digit fall in Q2 bottom line growth, estimates suggest.
Tata Motors: Sharekhan pegs Tata Motors' Q2 profit at Rs 324 crore against a loss of Rs 4,477.90 crore in the year-ago qarter. It expects consolidated revenue for the quarter to jump 31.8 per cent YoY (12.5 per cent QoQ) to Rs 80,927 crore from Rs 61,378.80 crore YoY. On a sequential basis it 21 per cent rise in JLR revenues in Pound terms), partially offset by 2 per cent decline in standalone business. Sharekhan said consolidated Ebitda margins to improve 630 basis points QoQ to 9.7 per cent (310 bps YoY) on back of operating leverage benefits and benefit of fall in key raw material prices. This brokerage expects JLR Ebitda margin to improve 510 bps QoQ to 11.3 per cent, led by improved product mix, operating leverage benefits, and cost optimisation.
Godrej Properties: Motilal Oswal expects Q2 profit for the realtor rising 302 per cent to Rs 143.50 crore from Rs 35.70 crore in the year-ago quarter, led by higher other income and contribution from JVs. Sales is seen rising 119.5 per cent YoY to Rs 283.80 crore. After reporting two record quarters, Godrej's presales is likely moderate by 13 per cent sequentially to Rs 2200 crore, a Motilal report said. HDFC Securities, on the other hand, expects the realtor to report a 47.1 per cent YoY rise in profit at Rs 52.50 crore on a 104 per cent surge in sales at Rs 264.20 crore.
Pidilite Industries: Kotak Institutional Equities expects Pidilite to report a 6.9 per cent YoY fall in consolidated net profit at Rs 348.80 crore for September quarter compared with Rs 374.70 crore in the same quarter last year. Revenues are seen rising 17.6 per cent to Rs 3,088.80 crore from Rs 2,626.40 crore YoY. Ebitda margin is seen at 17 per cent against 17.1 per cent in June and 20.9 per cent in the year-ago quarter. "On a reported basis, we expect 15 per cent YoY growth in domestic C&B sales and 25 per cent YoY growth in B2B sales. We expect aggregate revenues of subsidiaries to grow 20 per cent YoY. inputs. EBITDA margin is expected to contract largely due to RM inflation," it said.
Piramal Enterprises: Emkay Global expects the retail disbursement momentum to sustain for Piramal Enterprises, with 22 per cent sequential growth, in sync with the management target of 5-7 times September 2021 disbursements by Q3FY23. The brokerage expects Piramal Enterprises to report a 14.4 per cent YoY rise in profit at Rs 369.50 crore on a 103 per cent YoY rise in net interest income at Rs 935.10 crore. Net interest margin is seen at 6.24 per cent against 5.99 per cent in June and 4.34 per cent in the year-ago quarter.
"We expect sequential disbursement growth of 22 per cent to result in AUM growth of 2 per cent QoQ due to higher repayment. We expect NIM to improve by 25 bps QoQ to 6.2 per cent. We believe opex to moderate, with opex-to-loan book at 2.53 per cent (Q1FY23: 2.58 per cent). As a result, we estimate PPOP at Rs710 crore. We expect annualised net credit costs of 1.4 per cent QoQ," Emkay said.
Star Health and Allied Insurance Company: Motilal Oswal expects Star Health to report a net profit of Rs 111.90 crore for the September quarter compared with a loss of Rs 170.60 crore in the year-ago quarter. Net earned premium is seen risng to Rs 2,779.10 crore from Rs 2,416.70 crore YoY.
Expense ratio is seen declining both YoY and sequentially to 16.1 per cent while claims ratio is seen at 66 per cent, which is similar to June quarter's 66.3 per cent. Retail health premium growth expected to be strong at 20 per cent; while Group health segment is expected to see decline. Combined ratio to taper down materially, on both YoY and QoQ basis, Motilal said.
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