A host of companies will announce their quarterly results today including mortgage lender HDFC, jewellery maker Titan Company, FMCH major Dabur India and IT firms Birlasoft and eClerx Services. While HDFC is seen reporting a double digit growth in profit, Titan Company and Dabur India are likely to see a muted trend, analyst anticipated. Birlasoft and eClerx are seen reporting 10-19 per cent jump in Q3 profits, analyst projections suggest.
HDFC
Prabhudas Lilladher said HDFC could report a 13.5 per cent YoY jump in profit at Rs 3,699 crore compared with Rs 3,260.70 crore in the corresponding quarter last year. Net interest income (NII) is seen climbing 15.4 per cent YoY to Rs 4,945 crore compared with Rs 4,283.80 crore in the year-ago. Margin is seen at 3.43 per cent against 3.32 per cent in September and 3.35 per cent in the year-ago quarter. Gross non-performing asset is seen at 1.48 per cent against 1.59 per cent in September and 2.32 per cent in the year-ago quarter. Provisions are seen rising 6.9 per cent YoY to Rs 420 crore but fall 11.2 per cent sequentially.
Titan Company
HDFC Institutional Equities expects Titan to report 2.6 per cent drop in net profit at Rs 990 crore on a 13.6 per cent YoY rise in net sales at Rs 11,400 crore. Ebitda is seen coming in at Rs 1,420 crore, down 1.2 per cent YoY. Ebitda margin is expected to fall 187 basis points YoY to 12.5 per cent. As per Titan’s quarterly update, it reported a 12 per cent growth YoY, with Jewellery sales growing 11 per cent YoY on a standalone basis. Inventory levels, capital base movement and commentary on on gains in South market and on sustainable volume growth will be keenly followed.
“We build in 11.6 per cent EBIT margin at company level. We expect 12.5 per cent EBIT margin for jewellery, 13 per cent for watches and 12 per cent margin for yewear segment. We are building in 32 per cent studded ratio,” it said.
Dabur India
ICICIdirect said Dabur India is expected to report muted results with 4.4 per cent revenue growth, largely led by pricing growth. Weak rural demand conditions have continued to impact volume growth even in Q3. Though health supplements are expected to report positive growth numbers but Dabur will be impacted by high growth in base quarter, it said. Foods & beverage segment continued to post strong sales with some moderation in growth.
“We expect 5.1 per cent growth in international business adversely impacted by depreciation of Turkish lira. Gross margin is likely to improve sequentially by 50 bps but is expected to contract by 249 bps YoY. We expect 214 bps contraction in operating margins to 19.2 per cent. We estimate 4.9 per cent decline in net profit to Rs 479.70 crore.
Birlasoft
Emkay Global anticipates Birlasoft to report 0.8 per cent sequential growth in dollar revenue after considering 10 bps cross-currency headwind. EBIT margin is seen improving 40 bps QoQ due to operational efficiencies and weak rupee. Overall, the broking firm sees a 9.7 per cent YoY (8.6 per cent QoQ) rise in profit at Rs 125 crore on a 15.1 per cent YoY (3.5 per cent QoQ) jump in sales at Rs 1,234 crore. Ebitda margin is seen coming in at 15.2 per cent against 14.8 per cent in September and 15.2 per cent in the year-ago quarter.
Investor would watch out leadership transition and growth strategy, order wins, FY23 revenue growth and margin outlook, demand trends in the enterprise solutions business and any impact from macro uncertainties.
eClerx
Nuvama is expecting eClerx to report a 1.3 per cent QoQ growth in sales in CC terms and a similar revenue growth in dollar terms. It sees margin falling 60 basis points sequentially. It said it would keenly watch out for commentary on demand and any increase in roll-off risk due to macro headwinds. The brokerage sees profit rising 19.4 per cent YoY (1 per cent QoQ) at Rs 127.10 crore on a 22.8 per cent YoY (5.6 per cent QoQ) rise in sales at Rs 686.90 crore. Ebit margin is seen at 23 per cent, down 307 basis points YoY and 65 basis points QoQ. Dollar revenues are seen at $84 million.
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