A host of companies including Sun Pharmaceutical Industries, Jindal Steel & Power, KPIT Technologies, ACC and Coal India, among others are scheduled to report December quarter results on Tuesday. Among them, Jindal Steel and ACC are expected to report a steep fall in profits. KPIT Tech is seen reporting over 30 per cent profit growth for the quarter. Sun Pharma is expected to report a strong sales growth, but modest profit growth.
Jindal Steel Q3 preview
Centrum Broking expects Jindal Steel & Power (JSPL) to report a 45.2 per cent YoY drop in profit at Rs 885.20 crore compared with Rs 1,616.70 crore in the year-ago quarter. It sees sales for the steel making rising 4.9 per cent YoY to Rs 13,134.30 crore from Rs 12,524.90 crore. Ebitda is seen falling 35.1 per cent YoY to Rs 2,149.60 crore from Rs 3,310.20 crore. Elara Securities sees profit for Jindal Steel falling 56.10 per cent YoY to Rs 710.45 crore on a 2.2 per cent rise in sales at Rs 12,796 crore. Elara noted that while there were attempts to increase prices by steel industry at the start of December quarter, they were followed by rollbacks. Steel prices remained under pressure for the quarter, with a decline of 17 per cent YoY and 5 per cent QoQ in flat products. Prices of long and semi-finished products were up 5 per cent YoY and 3 per cent YoY, but fell 2 per cent QoQ and 6 per cent QoQ, respectively, it noted.
KPIT Technologies Q3 preview
KPIT Tech may report 16.1 per cent sequential growth in revenues in constant currency (CC) terms and 15.3 per cent QoQ growth in dollar revenue terms, said PhillipCapital. This brokerage sees profit for the quarter at Rs 91.10 crore, up 30.2 per cent YoY over Rs 70 crore in the same quarter last year. Revenue is seen climbing 43.50 per cent YoY to Rs 892.80 crore from Rs 622.40 crore in the year-ago quarter. Ebit margin for the quarter is seen at 14.3 per cent against 13.5 per cent in the year-ago quarter. Investec is expecting KPIT Technologies (KPIT Tech) to report a sequential organic revenue growth of 4.5 per cent in CC terms. Including Technica, it sees CC revenue growth at 16.9 per cent sequentially. This brokerage is estimating a flattish Ebitda margin, with Ebit largely to be impacted by amortisation cost of Technica. Net-net, it sees profit at Rs 94.50 crore (up 34.5 per cent YoY, up 13.1 per cent QoQ). It sees revenues at Rs 913 crore, up 46.7 per cent YoY or 22.6 per cent QoQ. Dollar revenues are seen at 111 million. Ebit margin is pegged at 13.8 per cent against 14.2 per cent in September and 13.5 per cent in the year-ago quarter.
Sun Pharma Q3 preview
Prabhudas Lilladher expects Sun Pharma’s US sales to be flat sequentially as normalisation of Taro sales will be negated by import alert in Halol unit. YoY growth will be aided by specialty sales, the brokerage said. The same brokerage expects Sun pharma to report Ebitda growth of 19 per cent YoY, led by continued growth momentum in Specialty segment. Profit is seen rising 9.8 per cent YoY to Rs 2,261 crore. Margin is seen at 27.9 per cent.
Nirmal Bang Institutional Equities expects revenue for Sun Pharma to grow at 14 per cent YoY, driven by growth across geographies. US Specialty business is expected to grow by 10 per cent YoY due to continuous strong growth in Winlevi, Illmya and Cequa.
“Growth in the US generics business (ex-Taro) is expected to remain strong due to new launches and volume gain in key products. Growth in Taro is expected to remain subdued due to heightened competition and lack of meaningful launches. The India business is expected to grow by 10 per cent YoY, driven by growth across segments. EBITDA margin is expected to remain strong at 26.5-27 per cent,” it said.
ACC Q3 preview
HDFC Institutional Equities expects ACC to log a profit of Rs 138.40 crore, down 58.8 per cent YoY. Sales are seen rising 3.9 per cent YoY to Rs 4,388.50 crore. Ebitda is seen at Rs 294.30 crore, down 47.1 per cent. Ebitda margin is pegged at 6.7 per cent, down 650 basis points YoY. Emkay Global expects profit to fall 42.6 per cent YoY to Rs 192.60 crore. Sales are seen rising 6.3 per cent YoY to Rs 4,397 crore. Ebitda margin is seen at 8.7 per cent.
“Volumes are expected to remain flat YoY/increase 11 per cent QoQ to 7.7mt, while grey cement realisation should increase 3 per cent QoQ. Total cost-to-tonne is expected to rise 12 per cent YoY. Accordingly, blended Ebitda/tonne is expected to decline 31 per cent YoY to Rs 500,” Emkay said.
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