India's result season will officially kick-off on Friday, March 12, when Tata Consultancy Services (TCS) will announce its earnings for the quarter and year ended on March 31, 2023. The IT major will also announce a dividend for the period. A host of companies are set to announce dividends along with their results, while others will declare their earnings. Along with TCS, Aster DM Healthcare and Anand Rathi Wealth will also announce their Q4 earnings with dividend for the period, while a few microcaps will also announce their earnings. On Monday, April 15, GTPL Hathway will announce its Q4 earnings and final dividend along with Rajoo Engineers, Atam Valves. Hathway Bhawani Cabletel & Datacom will also release its earnings. Axis Securities expects 2.3 per cent growth in revenue due to reversal of furlows and ramp up of the deals. Moderation of subcon cost likely to expand margins by 72bps and it also expects deal wins to be in the range of $7- $9 billion in the quarter. It said that commentary on new deals, visibility going ahead and vertical outlook on BFSI, Hi-tech, and manufacturing will be watched out. In its recent reports, Spark Avendus estimated Anand Rathi Wealths EPS to rise to Rs 54.9 in FY24, Rs 71.6 in FY25 and Rs 88 in FY 26 from Rs 39.4 in FY23. However, the brokerage expected Ebitda margin to drop 42.2 per cent in FY26 from 43.5 per cent in FY23 in its report released earlier this month.
On Tuesday, April 16, CRISIL is the only company which will announce a dividend with Q4 earnings. However, SG Mart, Den Networks and Shree Ram Proteins will share their earnings for the quarter.
Kotak Institutional Equities expects earnings growth of 25 per cent YoY, driven by growth in ratings and lower 13 per cent yoy growth in the non-ratings business for CRISIL. "We expect strong bond raising to support ratings revenue growth (QoQ). Non-ratings revenues are harder to project but Q1 is seasonally weaker. Focus on growth outlook in the international businesses," it said.
Despite a holiday on Wednesday, April 17, on the account of Ram Navami, largecap counters like ICICI Lombard General Insurance and Tata Communications will declare results and final dividends for the period, while broking firm Angel One and KCL Infra projects will share their earnings for Q4FY24 and FY24.
"The general insurance sector experienced steady GWP growth of 16 per cent and 13 per cent in January 2024 and February 2024, respectively. We expect ICICI Lombard to report improvement in profitability," said Motilal Oswal. "We remain positive on the long-term growth potential of the non-lending financials, given their broader themes of financialization and digitization."
On Thursday, April 18, another IT giant Infosys and auto major Bajaj Auto will declare dividend for the shareholders along with earnings for the period. They will be accompanied by Mastek and Swaraj Engines for the same. However, HDFC Life Insurance Company, ICICI Securities and Accelya Solutions will announce their quarterly and yearly results. Infosys is expected to report a revenue decline of 0.5 per cent in CC terms due to weakness in discretionary spends and lower contribution from large deals, said Sharekhan. "EBIT margins are likely to be flat. Margin headwinds due to wage hike (1 month) may be offset by the one-off impact from the McCamish system Cyber incident as it reverses in Q4FY24," it said.
Elara Capital pegs Bajaj Auto's revenue at Rs 11,358.2 crore, up 27.6 per cent YoY, while Ebitda may come in at Rs 2,301.9 crore, rising 34.1 per cent on a yearly basis. The auto major may fall 1,943.2 crore, up 35.6 per cent YoY. Sequentially, numbers may drop on all three parameters. Bajaj Auto is among its top picks from the sector.
On the last trading session of the week, that is Friday, April 19, Wipro and Jio Financial Services will announce their results for the quarter, while HDFC Asset Management Company and Elecon Engineering Company will share final dividends along with quarterly earnings for the period.
Equirus Securities expects Wipro's IT services dollar sales to decline by 0.3 per cent QoQ in CC terms. Recurring IT services EBIT margins are expected to dip by 18bps led by soft sales performance and impact from wage hikes. "We expect Wipro to guide for a decline of 1 per cent QoQ to growth of 1 per cent QoQ in IT services' dollar sales in CC terms for 1QFY25E," it said.
IT services dollar sales growth and margin outlook for 1QFY25E and beyond, margin outlook for near term as well as medium to long term, any portfolio/client specific issues resulting from ongoing geopolitical/macro concerns, update on deal pipeline, client decision making and order book for 4Q and beyond, further sizable M&A plans, Equirus added.
Commenting on HDFC AMC, total QAAUM for 4QFY24 expected to grow 11 per cent QoQ and 36 per cent YoY, said Phillip Capital. "Gross Yield is expected to remain stable and opex to remain higher driven by employee cost. Strong core Ebitda growth driven by strong AUM growth," it added.