PSUs such as Bharat Dynamics Ltd (BDL), REC Ltd, Cochin Shipyard Ltd, State Bank of India (SBI), NMDC Ltd and BEML Ltd were in focus in Thursday's trade, ahead of their December quarter results. While the BSE PSU index was trading flat at 17,993.16, BDL shares were down 0.53 per cent at Rs 1,208.85 on BSE. Cochin Shipyard Ltd declined 0.48 per cent to Rs 1,416.85. REC shares were flat at Rs 440.20. Shares of SBI, NMDC and BEML fell up to 0.5 per cent.
In the case of Bharat Dynamics, Elara Securities expects the defence company to report 32.6 per cent YoY rise in net profit at Rs 179.10 crore compared with Rs 135 crore YoY. It sees sales for BDL rising 59.4 per cent YoY to Rs 959.20 crore from Rs 601.60 crore YoY.
For BEML, Elara sees Q3 profit at Rs 56.80 crore, up 17.3 per cent. Q3 revenue for BEML is seen rising 2.1 per cent YoY to Rs 1,068.50 crore. Antique Stock Broking, however, sees 115 per cent surge in BEML's Q3 profit at Rs 104 crore on 14 per cent rise in sales at Rs 1,193 crore.
For Cochin Shipyard Ltd, Antique Stock Broking sees net Q3 profit falling 12 per cent YoY to Rs 219.10 crore from Rs 248 crore. Sales are seen rising 23 per cent YoY to Rs 1,260 crore from Rs 1,021.40 crore YoY.
PSU bank State Bank of India (SBI) is seen logging a 60-90 per cent surge in net profit for the December quarter on a single digit rise in year-on-year (YoY) net interest income (NII). Profit may rise on a low base, analysts said. Net interest margin (NIM) is expected to come in marginally lower. Banking analysts see slightly elevated provisions for SBI and slightly higher cost ratios in Q3. Asset quality is expected to remain contained. All eyes would be on the management commentary on capital adequacy, loan book growth and return ratios.
YES Securities said Indian iron ore producers are expected to see price and volume reversals on a QoQ basis. On NMDC, it noted that the company took price hikes in Q3, totaling approximately Rs 800 per tonne for its iron ore fines.
"Q3FY25 will also see better operational performance as the mining output is expected to pick up post the subdued monsoons. During Q3FY25, NMDC has reported a jump of 61 per cent QoQ in terms of iron ore production and a 23 per cent increases QoQ for its iron ore sales. We see the rise in volumes clubbed with the two price hikes to bode well for the iron ore miners."
It sees NMDC Q3 profit at Rs 2,101 crore, up 21 per cent YoY. The brokerage sees NMDC's Q3 sales at Rs 6,512 crore, up 20.4 per cent YoY. The growth in the top line and margins is expected to come majorly from better volumes as well as NMDC taking two price hikes during the first month of October 2024.
Meanwhile for REC, Elara Securities expects profit to rise 22.1 per cent YoY to Rs 3,992 crore against Rs 3,269 crore YoY. NII is seen rising 25.2 per cent YoY to Rs 5,206 crore from Rs 4158 crore YoY. REC is expected to maintain NIM of 3.6 per cent, within a broad range of 3.5-3.75 per cent.