Tag: earnings expectations

HDFC Bank Q3 preview: Net interest income expected to grow by 6.2% QoQ

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Bank will be reporting its third quarter (Q3FY24) earnings on Tuesday, January 16, and the private sector lender is expected to have a mixed quarter.

According to a CNBC-TV18 poll estimate, HDFC’s net interest income (NII) is expected to record a growth of 6.2% quarter-on-quarter (QoQ). It’s pertinent to note that a year-on-year (YoY) comparison may not be accurate due to the recent merger with HDFC Ltd.

HDFC’s profit after tax (PAT), is projected to decrease by approximately 1.8% on a sequential basis.

In its recent business update, HDFC Bank showed robust loan growth, registering a 4.9% increase QoQ. This positive development is expected to contribute to a stable net interest margin (NIM) of 3.4% in Q3 FY24, as per estimates from Nomura.

The improvement in the credit-deposit (CD) ratio sequentially should also help maintain the stability of the NIM.

Analysts from Jefferies and Morgan Stanley estimate slippages (loan defaults) at around ₹6,300 crore and ₹6,500 crore, respectively. This is a decline from the previous quarter’s figure of ₹7,800 crore, indicating a potential improvement in asset quality on a sequential basis.

While asset quality appears to be stabilising, one factor that could impact the bottom line is the tax rate. Changes in the tax rate have the potential to influence the overall earnings momentum.

On a positive note, credit costs are expected to remain stable in the third quarter compared to the previous one.

The stock was trading 0.4% lower at 1,666 apiece at 9.20am on Tuesday, January 16, ahead of reporting its third quarter earnings.

Also Read | Macquarie Capital’s Q3FY24 expectations for banks and NBFCs

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

June Quarter Earnings Preview: A look at what to expect as market trades at record high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The upcoming April to June quarter (Q1FY24) earnings hold significant importance for various sectors and companies, especially as the markets continue to trade at record highs. Market estimates indicate that the Sensex is expected to achieve an 18 percent year-on-year (YoY) earnings growth, while the Nifty 50 is anticipated to report a 25 percent earnings growth.

The banking and auto sectors are expected to spearhead the earnings growth during the June quarter. With margin expansions, most companies within the auto sector are projected to have a strong quarter. Meanwhile, banks and non-bank financial companies (NBFCs) are the sectors to watch closely, as there is an estimation of a 10-20 basis points (bps) net interest margin (NIM) compression.

The metals and cement sectors may face challenges during this quarter, resulting in lower earnings. The metal sector, in particular, is likely to have a subdued quarter due to margin contraction. Steel is expected to witness a decline of at least Rs 2,000 per tonne compared to the previous quarter. Similarly, although the cement sector might experience significant volume growth, margins are expected to remain flat, which could impact earnings.

Oil marketing companies (OMCs) are anticipated to generate substantial earnings during this quarter due to elevated marketing margins. Despite Brent crude trading around $78 per barrel, OMCs continue to sell petrol in the retail market for around Rs 105 per litre, contributing to their profitability. Gas utility companies are also expected to exhibit earnings growth, driven by improved margins.

In the consumer durables sector, lackluster earnings are expected across the board, except for Trent.

This implies that most companies within this sector may face challenges during the June quarter, with Trent being an exception.

The speciality chemicals sector is anticipated to report weak earnings for quarter one. On the other hand, IT companies typically have a strong first quarter; however, this time there are expectations of some shakeouts, particularly among large-cap IT companies. This suggests that the IT sector might witness some challenges and reorganization during the upcoming earnings season.

This earnings season is poised to be a crucial period for various sectors and companies as they strive to meet market expectations amidst record-high market levels. While the banking and auto sectors are expected to lead the way with earnings growth, the metals, cement, consumer durables, speciality chemicals, and IT sectors face their own challenges. Investors and market participants should closely monitor the quarterly performance of these sectors and companies to gain valuable insights into the overall market dynamics and potential shakeouts within the IT sector.

Also Read: Demand uncertainty in IT persists, FY24 will be a mean reversion towards growth, says JPMorgan

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dr Reddy’s Q4 earnings preview: 17% revenue growth likely, margins may rise to 25%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharma major Dr Reddy’s Laboratories Limited (DRL) is scheduled to report its earnings for the fourth quarter ended March 31, 2023.

A CNBC-TV18 poll expects the Q4FY23 revenue to grow by 17 percent and the EBITDA to come at Rs 1,615 crore against 1,298 crore. Margins are expected to come in at 25 percent versus 23.9 percent on a year-on-year basis.

Profit after tax (PAT) is projected at Rs 1,145 crore against 87.5 crore in the same quarter last year.

CNBC-TV18 expects the company to report strong sales growth of over 15 percent YoY. The US generics business is likely to be led by contribution from Revlimid generic.

The company is also likely to see a strong growth in its India formulations business. In Q3FY23 the India business was driven by increase in sales price and new product launches.

Also Read: Dr. Reddy’s Laboratories announces the launch of a hypertension injection in the US

Management commentary on US launches and pricing pressure will be among the key things to watch.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dabur Q4 Earnings Preview | Street expects revenue growth of 6%, margins may decline to 16%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG major Dabur is scheduled to report its earnings for the final quarter of the 2022=23 fiscal on Thursday, May 4.

A CNBC-TV18 poll expects the revenue to grow by 6 percent to Rs 2,670 crore versus Rs 2,517.8 crore in the corresponding quarter last year. EBITDA is likely to decline by 6 percent to Rs 425 crore as against Rs 453.6 crore on a year-on-year basis.

Margins for the March quarter are likely to decline to 16 percent, while domestic volumes are likely to remain flat.

New product performance of the company, rural demand, distribution expansion will be key parameters to watch out for. Also a large part of the revenue bump is likely to come on account of the Badshah Masala acquisition.

Also Read: Dabur says rural, urban demand falls short of full recovery, cites near-term consumption pressure

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IDFC First Bank Q4 Preview | Street expects net interest income to grow by 30.2%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IDFC First Bank is scheduled to report its earnings for the fourth quarter of FY23 on Saturday, April 29.

A CNBC-TV18 poll expects the net interest income (NII) to grow by 30.2 percent at Rs 3,475.4 crore against Rs 2,669.2 crore in same quarter last year.

Net interest margin (NIM) is likely to remain healthy at 6.3 percent, while profit after tax (PAT) is likely to grow by 97.6 percent at Rs 676.1 crore.

Also Read: Exclusive | KV Kamath doesn’t foresee a US-like bank crisis in India

The banks is also likely to report improvement in asset quality, while credit cost is expected to remain stable. Analysts also expect loan growth to see healthy traction led by retail and commercial finance.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TCS could outperform Infosys after 12 quarters

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Consultancy Services will be reporting its numbers on Monday, and a CNBC-TV18 poll expects US dollar revenue growth of 1.65 percent quarter-on-quarter, while rupee revenue growth is seen at 3.9 percent.  Market watchers also believe that this time TCS’ year-on-year revenue growth is likely to be higher than Infosys for the first time in 12 quarters.

What to watch?

The TCS guidance for the fourth quarter of the current financial year sets the expectation benchmark. After securing some good deal wins two quarters back, the company had guided for strong revenue growth but with the current macro uncertainty does this deal win margin range stay today? The commentary on this will be closely scrutinised.

Also, something that the street will like to check is if the TCS-BSNL deal of approximately $2.3-2.1 billion gets consummated in this quarter. If it does, there is a possibility of an upside.

Read Here: TCS Earnings Preview | Revenue growth may moderate while margin expansion seen

The management had last quarter said that attrition had bottomed out. Comments on those will be interesting to watch too. The employee addition numbers might be low because of a weaker attrition rate.

Also Read: IDBI Bank stake sale: Dipam secy says domestic as well as foreign institutions showing interest

The most important commentary is going to be on buyback. There is a one-year cool-off period from when the buyback ends and the next buyback can be announced.

Now, TCS last year in the Q3 FY22 numbers announced its buyback. The buyback happened in the month of March and the cool-off period ends in March. There is a possibility that in Q1 FY24 the company can go ahead and do a buyback because the cool-off period has ended.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Street expects Bharti Airtel to post consolidated revenue growth of 6.3%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Bharti Airtel’s fourth quarter earnings report will be out on Tuesday and the Street is expecting a very good quarter from the firm. The CNBC-TV18 poll has predicted a consolidated revenue growth of 6.3 percent quarter-on-quarter  and it will be led by the India mobile business which had witnessed price hikes.

A 10 percent revenue growth quarter-on-quarter is expected for the company’s India mobile business, which is above 58 percent of the company’s overall revenues.

The industry had hiked tariffs towards November-end and that is going to lead to the top line performance. The average revenue per user (ARPUs) is also seen up 10 percent on a quarter-on-quarter basis.

Both, Vodafone Idea and Reliance Jio, had reported an increase of about 8 to 10 percent in the average revenue per user this quarter and the CNBC-TV18 poll is expecting Bharti Airtel to also report similar numbers.

Also Read: Battle hardened Bharti Airtel’s future looks good now, says Sunil Mittal

Bharti Airtel’s margins are expected expected to be stable around the 50 percent-mark, and profits could more than double on a quarter-on-quarter basis.

Subscriber addition on ARPUs will be important to watch. Also, the company has a target of hitting ARPUs of Rs 200 in the medium term, when will the next tariff hike take place and all eyes will be on the 5G auctions which are due sometime this year. Also, capital allocation could be a big price driver.

Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow