GAIL is likely to see a drop in profits of more than 50%, even though sales may go up by more than 10% for the quarter. Analysts said that after a slow Q3, sequential numbers would start to get better.
Today, dozens of companies will announce their financial results for the March quarter. Among them are ITC, State Bank of India (SBI), GAIL, and Tata Elxsi, which are all part of the Nifty. Analysts think that SBI will have the best year-over-year (YoY) profit growth, with an increase of up to 70%, while GAIL’s profit may drop by more than 50%. Analysts expect Tata Elxsi’s bottom line to grow by more than 20% and ITC’s profit to grow by more than 10% in Q4.
A look at SBI’s Q4 numbers
On a year-over-year (YoY) basis, State Bank of India (SBI) is expected to have a profit growth of 40–70% for the March quarter, thanks to strong fee income and a sharp drop in provisions. This is a good time of year for the PSU bank. With MCLR (marginal cost of funds) repricing, experts expect net interest income (NII) to go up 20–30% and net interest margin (NIM) to grow. They also expect the cost of credit for the state-run bank to stay below 1%. Analysts said that a big bank’s loan growth might be less than that of other big banks. Everyone would be looking at opex, traction in savings, and the cost of deposits going up.
A look at ITC’s Q4 numbers
Analysts think that ITC’s sales will go up by 3% to 6% and that its profits will go up by 10%. The hotel business may do well if there are a lot of hotel bookings. The cigarette business may grow by 13–14% year-over-year, but the farming business may shrink by more than 10%. Analysts expect the paperboards, paper, and packing business to have flat growth.
Motilal Oswal Securities plans to make Rs 4,730 crore in profit, which is up 12.8% from the previous year. At Rs 16,050 crore, sales are expected to have increased by 3.3%. At Rs 4,856 crore, up 15.9%, Nuvama’s profit was predicted. It expects sales to go up by 5.1% year-over-year to Rs 16,324 crore. ICICI Securities expects a net profit of Rs 4,911.8 crore, which is up 17.2% from the previous year.
GAIL Q4 results preview
GAIL is likely to see a drop in profits of more than 50%, even though sales may go up by more than 10% for the quarter. Analysts said that after a slow Q3, sequential numbers would start to get better. HDFC Securities expects a profit of Rs 1,200 crore for the March quarter, which is down 54.9% from the same time last year. It predicts that GAIL’s sales will rise by 21.8% to Rs 32,800 crore.
We anticipate GAIL to report Ebitda of Rs 1,900 crore, up 40% QoQ, due to profitability in the LPG and Liquid Hydrocarbons (LHC), gas trading segments, greater gearbox volume and improved petchem capacity utilisation, the statement read.
Sharekhan expects to make Rs 916 crore in profit, which is down 65.9% from the previous year. It thinks that sales will go up 34% year over year to Rs 36,166 crore. “After a poor performance in Q3FY23, GAIL would see a sharp improvement in its performance with lower petchem loss and a recovery in gas transmission/market-segment Ebitda,” it said, adding that a sharp drop in spot LNG prices would drive GAIL’s straight earnings recovery.
Tata Elxsi Q4 results review
Sharekhan predicts this Tata group company’s profit to go up by 21.5% year over year, from Rs 160 crore to Rs 194 crore. The revenue for the quarter is expected to go up by 24.5% YoY, from Rs 682 crore to Rs 848 crore. In terms of the same currency, the brokerage expects its sales to grow by 2.5% each quarter. The margin is expected to be 30.7%, compared to 32.5% YoY.
