Motilal Oswal Securities expects the combined sales of Nifty constituents for the September-December period to fall 2 per cent YoY. The brokerage expect (PAT) for the Nifty companies to rise in single digits at 7 per cent YoY. Antique Stock Broking expects Nifty profit to rise 3.8 per cent and sales by 2 per cent.
Among the companies analysts are expecting to report strong results are cement makers Shree Cement and UltraTech Cement. While Shree Cement is projected to report 105.3 per cent profit growth to Rs 636.30 crore from Rs 310 crore, UltraTech Cement is expected to report 72.3 per cent rise in profit at Rs 1,390.40 crore against Rs 806.90 crore reported for the year-ago period, Motilal Oswal Securities said.
Brokerage Nirmal Bang expects profit for UltraTech Cement to rise 58 per cent YoY to Rs 1,126 crore. It has projected Shree Cement to repot 67.5 per cent profit growing at Rs 519.3 crore.
A drop in depreciation and interest cost and a jump in other income are expected to aid Shree Cement’s numbers. Cement volumes are estimated to rise 14 per cent YoY. In case of UltraTech Cement, the company had provided for a one-time expense of Rs 133.23 crore in the year-ago quarter as part of other expenses against various disputed liabilities. No such expense this time, a fall in interest outgo and a 12 per cent rise in sales are expected to support Ultratech’s December quarter numbers.
Motilal expects Cipla to report 83.60 per cent rise in profit at Rs 644.60 crore and Sun Pharma to report 65.7 per cent profit growth at Rs 1,378.50 crore. Edelweiss pegged YoY growth for Cipla at 54.1 per cent to Rs 595.70 crore and that for Sun Pharma at 50.3 per cent to Rs 1,268 crore.
“Revenue ($ 147 million) is expected to increase 4 per cent QoQ, driven by market share gain in gProventil. Moreover, Atripla and Truvada supplies to Teva would keep API strong (up 45 per cent YoY). We estimate Ebitda margin to improve 415 bps YoY to 21 per cent driven by cost savings,” Edelweiss said.
For Sun Pharma, revenues are seen rising 7 per cent to Rs 8,625 crore. The company may report a drop in interest outgo and rise in net other income, analysts said.
Motilal Oswal expects Hindalco’s profit to rise 64.1 per cent to Rs 1,435.30 crore. It has projected JSW Steel to report multi-fold jump in profit at Rs 2,245.10 crore. Edelweiss expects Hindalco’s profit to grow 80 per cent to Rs 1918 crore and that of JSW to jump multi-fold to Rs 2,729.20 crore.
In the case of JSW Steel, the year-ago quarter was pretty bad, as the company reported an 88 per cent drop in profit. In the case of Hindalco, the rise in profit would be aided by improved LME aluminum prices.
Emkay Global expects IOC to clock a 126 per cent YoY growth in profit at Rs 5,294.60 crore on a 13.9 per cent drop in sales at Rs 1,07,282 crore. The company is likely to make forex gains due to the weak dollar. Motilal expects 61.8 per cent profit growth from the OMC at Rs 3,783.80 crore. IOC, Motilal said, is also likely to benefit from multi-year high petchem margins during the quarter.
Inventory gains are likely at $2 a barrel, with gross marketing margins at Rs 5.3 per litre, it said.