A host of companies including Reliance Industries (RIL), JSW Steel, HDFC Life, LTI Mindtree and Coforge are scheduled to report quarterly earnings. While RIL is expected to report a single digit drop in YoY profits, JSW Steel and Bandhan Bank are seen logging up to 90 per cent plunge in bottom line growth. HDFC Life may report a solid quarter, analysts said.
RIL Q3 results preview
Reliance Industries is seen reporting a 5 per cent drop in net profit on a double digit growth in sales. Nuvama Institutional Equities expects the oil-to-telecom major to log 4.8 per cent drop in profit at Rs 14,965 crore on a 12.5 per cent YoY rise in sales at Rs 2,08,132 crore.
"We anticipate 10 per cent YoY growth in RIL Ebitda largely driven by strong ONG, retail and telco division offset by subdued O2C. While the benchmark Singapore GRMs remained flat YoY, it has plunged 16 per cent QoQ. Moreover, imposition of windfall tax on HSD/MS/ATF shall weigh on margins further," Nuvama said.
Emkay Global sees Reliance Industries profit falling 4.3 per cent YoY to Rs 15,041.90 crore. It sees revenue jumping 21.3 per cent YoY to Rs 2,24,394 crore. Ebitda margin is seen at 15.5 per cent against 16.1 per cent YoY.
JSW Steel Q3 results preview
JSW Steel is seen reporting 80-90 per cent YoY drop in December quarter profit on a single digit fall in sales. Elara Securities sees JSW Steel's profit at Rs 426.70 crore, down 90.20 per cent YoY over Rs 4,357 crore in the year-ago quarter. It sees sales rising 4.3 per cent YoY to Rs 39,079 crore from Rs 37,462. Ebitda is seen falling 58.1 per cent YoY to Rs 3,826 crore from Rs 9,132 crore YoY.
Centrum Broking, on the other hand sees profit falling 81 per cent YoY to Rs 834 crore Centrum Broking sees a flattish revenue at Rs 37,940 crore against Rs 38,071 crore YoY.
Bandhan Bank Q3 results preview
Nuvama said Bandhan Bank's earnings have bottomed out after a weak September quarter. However, with a relatively weaker deposit franchise, LDR in excess of 100 oer cent and only a gradual recovery in profitability, we find better value elsewhere. This brokerage expects Bandhan Bank to report a 65 per cent YoY drop in profit at Rs 300 crore on an 8.4 per cent YoY rise in net interest income (NII) at Rs 2,300 crore. Profit may fall, as provisions are seen rising 96.7 per cent YoY to Rs 1,590 crore. Net interest margin (NIM) for the bank is seen at 7.4 per cent against 7.8 per cent YoY.
Elara Securities sees Bandhan's profit at Rs 314.50, down 63.4 per cent YoY. NII is seen growing 7.4 per cent YoY to Rs 2,281.60 crore
HDFC Life Q3 results preview
HDFC Life is seen reporting 30 per cent YoY jump in December quarter profit at Rs 356 crore on 22 per cent jump in APE at Rs 3,163 crore. VBN magin is seen at 26.4 per cent against 26.7 per cent YoY.
"We expect HDFC Life to deliver a strong 22 per cent YoY APE growth for Q3FY23. The strong growth is on account of its merger with Exide Life, with numbers in the base being ex-Exide Life. With Non-Par products gaining share within the product mix, we expect HDFC Life to report VNB margin at 26.3 per cent for 9MFY23, leading to 19 per cent YoY growth in the absolute VNB, at Rs 2,120 crore for 9MFY23," Emkay Global said.
LTIMindtree Q3 results preview
Motilal Oswal said the combined LTI and Mindtree entity may report a slower-than-usual third quarter growth, as strong third quarter for LTI would be offset by furloughs in Mindtree. This brokerage expects 50-100 bps pass-through impact. Verticals such as manufacturing, retail and pharma are expected to see slow growth while BFSI is seen doing wel Net-net, Motilal Oswal sees 100-120 bps margin impact (QoQ on combined basis) due to furloughs. MOtilal Oswal said LTIMindtree is expected to see a one-time integration cost of 100 bps. Commentaries around integration, revenue synergies and deal pipeline remain the key monitorables for the stock. Revenues are seen at Rs 8,616.60 crore, profit at Rs 1,195.50 crore. Dollar revenues for this IT firm are seen at $1,048 million.
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