Q2 result previews: Redington India, Kajaria Ceramics, M&M Financial, Dalmia Bharat & Relaxo Footwears

By admin On Nov 2, 2022

Dozens of companies will report their September quarter results today. Among them are Dalmia Bharat, Mahindra & Mahindra Financial Services (M&M Financial), Relaxo Footwears, Kajaria Ceramics and Redington India. Analyst estimates suggest M&M Financial, Kajaria Ceramics, Dalmia Bharat and Relaxo Footwears may log a drop in year-on-year (YoY) profit while they see profit for Redington India rising marginally.

Mahindra & Mahindra Financial Services: Motilal Oswal expects the vehicle financer to report September quarter profit at profit Rs 478.50 crore, down 53.2 per cent YoY. It sees NII for the NBFC rising 8.8 per cent YoY to Rs 1,624.90 crore. Operating profit is expected to fall 2.2 per cent to Rs 994.30 crore. M&M Financial has already reported its quarterly disbursements for September quarter at Rs 11,750 crore, up 24 per cent sequentially. Guidance on asset quality and credit costs and updates on
engagement with RBI to get the ban revoked on the usage of third-party agents for collection will be keenly followed.

Kajaria Ceramics: HDFC Institutional Equities expects Kajaria Ceramics to report a 14.4 per cent YoY drop in consolidated profit at Rs 99.40 crore on a 17.4 per cent YoY rise in net profit at Rs 1,143 crore. Ebitda is seen falling 11.7 per cent YoY to Rs 159.30 crore while Ebitda margin is seen contracting 460 basis points YoY to 13.9 per cent. HDFC Institutional Equities said its channel checks suggest Kajaria took 2.5 per cent price hike in September, while other player took price hike in June. “We expect industry margin to remain under pressure, owing to a 15 per cent QoQ surge in gas costs,” it said.

Dalmia Bharat: Axis Securities expects a 60 per cent YoY drop in consolidated net profit at Rs 8.2 crore compared with Rs 20.40 crore in the year-ago quarter.Sales are seen rising 18 per cent YoY to Rs 304.50 crore from Rs 257.70 crore in the same quarter last year, thanks higher volumes & better realisation. Ebitda margin is seen at 14.3 per cent, down 980 basis points over 24.1 per cent in the year-ago quarter due to higher operating cost. Volumes are seen rising 15 per cent YoY to 5.87 mmpta, driven by better demand in South region.

Redington: India: Edelweiss said Redington is likely to report steady revenue growth (14.5 per cent YoY), with 11 basis points dip in Ebitda margin on account of normalisation of working capital. It sees the company to report a 3 per cenrt YoY rise in net profit at Rs 316.63 crore on a 14.5 per cent YoY rise in sales at Rs 17,498 crore. Growth is seen across mobility and IT segments.

“Demand for IT products continues to remain robust and we expect Redington to demonstrate strong execution. Ebitda margins are likely to taper further to 2.64 per cent, a 11 bps QoQ dip, on account of normalisation of working capital. Commentary on the demand situation, performance of top brands, traction in the cloud and managed services businesses, and trends in working capital will be the key things to watch out,” it said.

Relaxo Footwears: This footwear maker may see bottoming out of margins in the September quarter, said Centrum Broking. It sees profit falling 29.1 per cent YoY to Rs 48.70 crore on a 10 per cent drop in sales at Rs 643 crore. Ebitda is expected to drop 21.2 per cent to Rs 92.10 crore while the EBitda margin is expected to contract 200 basis points YOY to 14.3 per cent.

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