Tata Motors, Suzlon Energy, Dabur, Chola Finance Q2 results: Here are brokerage previews

A host of largecap companies will announce their September quarter results today. The list includes names like Tata Motors Ltd, Dabur India Ltd, Cholamandalam Investment & Finance Company Ltd and Suzlon Energy Ltd. Here are brokerage expectations from these companies: Tata Motors Kotak Institutional Equities expect Tata Motors to return to black with a bottomline at Rs 4,738 crore in September quarter. Tata Motors’ revenue are seen at Rs 1,05,578 crore, up 33 per cent on a year-on-year (YoY) basis and flat sequentially (QoQ). Ebitda may jump 130 per cent YoY to Rs 14,257 crore, with Ebitda margins likely expanding 572 basis points (bps) to 13.5 per cent. “We estimate standalone business revenues to increase due to improvement in volumes led by strong demand trends in MHCV trucks and passenger segments and increases in ASPs due to richer product mix, price hikes taken in the last one year and lower discounts. Overall, we expect Ebitda margin to improve led by RM tailwinds and operating leverage benefits,” Kotak said. Phillip Capital expects revenue to grow 30 per cent YoY led by 26 per cent growth in realisations on the back of price hikes and better product mix, and to grow 23 per cent QoQ driven by higher volumes of 21 per cent. "Ebitda margin to improve 674 bps YoY led by lower RM costs and lower discounts, and to improve 236bps QoQ due to better operating leverage and lower RM costs," it said. Dabur India Nuvama Institutional Equities sees Dabur's revenue at Rs 3,196 crore, up 7 per cent YoY and 2.1 per cent QoQ. It sees Ebitda coming in at Rs 649 crore, up 8 per cent YoY and QoQ both with flat Ebitda margins around 20 per cent. PAT may inch up in single digits at Rs 506.5 crore in the Q2FY24. "We expect India business to grow by 6 per cent YoY and the international business by 10 per cent YoY. We expect domestic volumes to grow by 2 per cent YoY. We expect oral care, healthcare to clock high single-digit growth and HPC, Hair care to clock low-mid single digit growth. Dabur is likely to do well, especially in the Middle East due to proactive steps," Nuvama said. HDFC Securities expects Dabur India's revenue to be around Rs 3,240 crore, up 4 per cent QoQ and 9 per cent YoY. The company may report an Ebitda of Rs 650 crore, rising about 9 per cent with a Ebitda marginal coming in mostly flat at 20.2 per cent. PAT is seen growing in double digits QoQ to Rs 510 crore. “We model 5 per cent YoY growth in domestic revenue with 3 per cent YoY volume growth. Hair care, Oral care, Healthcare, Home care may grow at 5-9 per cent but Foods may drop 4 per cent. Including Badshah Masala, foods growth to be at 13 per cent. We expect international business to grow by 9 per cent YoY,” it added. Suzlon Energy JM Financial expects Suzlon Energy's revenue to come in at Rs 1,464.20 crore, up 8 per cent QoQ and stable YoY. its Ebitda may increase 28 per cent YoY to Rs 216.7 crore with an Ebitda margin expanding 254 basis points (bps) YoY to 15 per cent. Sulzon Energy’s net profit is seen at 111.6 crore, up 94 per cent YoY and 20 per cent QoQ. "Suzlon’s revenue is expected to remain broadly stable. Net profit after tax to improve 94 per cent YoY primarily on account of reduction in interest expenses due to repayment of debt along with some benefit from RM cost moderation," JM Financial added. "Suzlon’s commissioning of 3MW turbine in 2HFY24 and momentum in wind tendering will also be one of the key focus areas." Chola Finance Systematix Institutional Equities sees Chola's revenue at Rs 1,960 crore in Q2FY24, up 32 per cent YoY and 6 per cent QoQ. Its pre-provisioning operating profit (PPOP) is seen coming in at Rs 1,408 crore, up 36 per cent YoY. PAT is seen increasing 33 per cent to Rs 746.8 crore in the quarter. "Chola Finance's AUM growth is expected to be strong at 41 per cent and 7 per cent aided by continued traction in Vehicle portfolio and new business verticals. NIMs are likely to contract by 7 bps led by higher cost of funds and asset quality likely to remain stable," it added. Sharekhan expects Chola to report a net interest income of Rs 1,933 crore, up 30 per cent YoY and 5 per cent QoQ. PPOP may come in at Rs 1,333 crore, flat on a sequential basis but 29 per cent up YoY. PAT is seen at Rs 760 crore, rising 35 per cent YoY and 5 per cent QoQ. "AUM is expected to grow 40 per cent YoY and Asset quality is expected to be largely stable," said Sharekhan.