Three Nifty50 constituents, namely Nestle India, IndusInd Bank and UltraTech Cement, are set to report their quarterly results today. While Nestle India is expected to report a modest 5-13 per cent rise in profit, UltraTech Cement could report a high double-digit drop in the bottom line, analysts said. IndusInd Bank is seen logging the highest profit growth among the three at 40-60 per cent on year-on-year basis (YoY).
IndusInd Bank
In its quarterly business update, the private lender reported an 18 per cent year-on-year (YoY) growth in advances at Rs 2,59,647 crore and a 15 per cent YoY jump in deposits at Rs 3,15,824 crore. Emkay Global expects this lender to report a 43.3 per cent YoY rise in profit at Rs 1,643 crore on a 14.8 per cent YoY rise in net interest income (NII) at Rs 4,199 crore. Net interest margin (NIM) is seen flattish at 4.1 per cent.
Nirmal Bang Institutional Equities sees the profit figure at Rs 1,879.50 crore, up 63.9 per cent. It sees NII at Rs 4,229.40 crore, up 15.6 per cent YoY. ┬а
The asset quality of the lender will remain under watch. MFI slippages and restructuring book will be key monitorables, said Motilal Oswal Securities. This brokerage is expecting IndusIndтАЩs profit to grow 55.9 per cent at Rs 1,790 crore.
Nestle India
Higher raw material cost may hurt Nestle India, as analysts peg a modest YoY growth in September quarter profits. HDFC Securities sees the bottom line rising 7.9 per cent to Rs 670 crore on a 13.1 per cent jump in net sales at Rs 4,390 crore. It is expecting a 220 basis points YoY contraction in gross margin on account of input cost pressure. The same brokerage sees EBITDA margin contracting 146 bps YoY to 23.3 per cent. Prabhudas Lilladher pegs the profit figure at Rs 700 crore. It sees sales rising 17.5 per cent YoY to Rs 4,562 crore. This brokerage sees EBITDA margin contracting 120 bps YoY to 23.3 per cent.
Any commentary on recovery in trade channels and rural demand, new product pipeline and demand trends in packaged foods will be keenly followed.
UltraTech Cement
Brokerages see the cement maker reporting up to 55 per cent YoY drop in Q2 profit. Volumes are seen rising 7-11 per cent while sales are seen growing in double digits. Motilal Oswal expects the cement maker to report a 54.9 per cent YoY drop in profit at Rs 592.50 crore on an 11.6 per cent YoY rise in net sales at Rs 13,405.40. ┬аEmkay Global UltraTech Cement to report profit figure at Rs 718.30 crore while it sees sales at Rs 13,435.90.
Volume growth for UltraTech Cement is seen at 11 per cent YoY (down 4 per cent QoQ), said PhillipCapital, which sees blended realisations rising 6 per cent YoY (down 3 per cent QoQ). The brokerage sees EBITDA per tonne at Rs 934, down 26 per cent YoY (down 24 per cent QoQ). ┬а
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