Dozens of companies are scheduled to report their quarter results later today. They incldued ITC, State Bank of India (SBI), Tata Power and One 97 Communications (Paytm). While SBI is expected to log over 60 per cent jump in net profit, Tata Power results could be fuelled by one-time gains. ITC may log a single digit rise in profit while Paytm may see narrowing of losses for the quarter, analyst estimates suggest.
SBI Q3 results preview
Sharekhan expects SBI to report a 61 per cent year-on-year YoY) surge in net profit at Rs 13,572 crore compared with Rs 8,432 crore in the corresponding quarter last year. It sees net interest income (NII) jumping 21.2 per cent YoY to Rs 37,187 crore from Rs 30,687 crore in the same quarter last year. Pre-provision operating profit is seen climbing 24.7 per cent YoY to Rs 23,087 crore from Rs 18,522 crore. Advances are likely to grow at 18 per cent YoY. Margin is seen stable sequentially. Asset quality may also stay remain stable, with slippages would be largely from SME and retail book. Corporate book may continue to hold well, Sharekhan said.
Tata Power Q3 results preview
HDFC Institutional Equities is expecting Tata Power to report 154.5 per cent YoY rise in net profit at Rs 1,080 crore, largely due to a fall in under-recovery at its Mundra station and a one-time benefit from the CERC order. The brokerage is expecting Tata Power to report 37 per cent YoY jump in revenues at Rs 14,950 crore, led by improved generation at the Mundra plant (up 20.7 per cent YoY to 340 crore) and CERC’s favourable order, higher power demand across its distribution circles, and executions in its solar EPC segment.
ITC Q3 results preview
ICICIdirect expects ITC to report an 8.4 per cent YoY rise in net profit at Rs 4,503.70 crore on a 5.9 per cent revenue growth at Rs 17,794.90 crore, on the back of strong growth in cigarettes, FMCG, paperboard & hotels business. It sees cigarette volume growth at 10.3 per cent, led by 7 per cent volume growth.
“FMCG business is expected to see strong 19.2 per cent growth led by traction in discretionary categories, price hikes taken in the last one year and recovery in education & stationary business. Paperboard segment is expected to see strong pricing & volume growth. Hotels business is likely to see strongest occupancies and ARRs since Covid-19 outbreak. Agri business is likely to see 7.6 per cent sales decline mainly on account of export restriction on many agri commodities,” it said.
Kotak Institutional Equities is modelling in 9 per cent YoY growth in cigarette volumes (4.5 per cent on a 3-year CAGR basis versus 5.1 per cent last quarter) in the December quarter, largely driving 12.3 per cent YoY growth in cigarette sales. It forecast 13.3 per cent YoY growth in cigarette EBIT in the December quarter.
Paytm Q3 result preview
Dolat Capital sees Paytm Q3 revenues rising 41.1 per cent YoY to Rs 2068 crore from Rs 1,456 crore in the year-ago quarter. It sees loss for the quarter at Rs 503.50 crore against Rs 571.10 crore in September and Rs 778.40 crore in the year-ago quarter. All eyes would be on any commentary on revision in adjusted Ebitda break even timeline and scalability of credit to merchant and users, the brokerage said.
ICICI Securities in a said Paytm may report 46 per cent year-on-year (YoY) rise in revenues at Rs 2,125.70 crore compared with Rs 1,456.10 crore in the year-ago quarter. It sees Ebitda loss declining to Rs 488.10 crore from Rs 537.80 crore in September and Rs 787.90 crore in the December quarter last year.
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