Q3 results previews: Axis Bank, Canara Bank, Route Mobile, Gland Pharma & KEI Industries

Axis Bank, Canara Bank, Gland Pharma, KEI Industries and Route Mobile are among dozen of companies, which will announce their quarterly results on Monday.  Except for Gland Pharma, other lending and non-lending businesses are expected to report a solid set of numbers, with banks namely Axis Bank and Canara Bank leading the bottom line growth. These companies are seen reporting up to 27 per cent rise in sales/ net interest income (NII) for the quarter. Margins are seen staying stable in most cases.

Axis Bank Q3 preview

Sharekhan expects Axis Bank to report a 50 per cent YoY surge in net profit at Rs 5,422 crore compared with Rs 3,614 crore in the same quarter last year. Net interest income (NII) is seen jumping 25.5 per cent YoY to Rs 10,858 crore from Rs 8,653 crore in the year-ago quarter. Pre-provision operating prfit is seen rising 32.5 per cent YoY to Rs 8,166 crore from Rs 6,162 crore YoY. Sharekhan said advances for the bank may grow 16 per cent YoY, led by retail and SME. NIMs are expected to expand sequentially. The key monitorable would be the progress of the Citi portfolio and improvement in operating profit growth further led by some improvement in cost ratios, it said.

Canara Bank Q3 preview

Emkay Global expects Canara Bank to report 42 per cent YoY jump in net profit at Rs 2,022 crore. Net interest income (NII) is seen rising 9.10 per cent YoY to Rs 7,577 crore. Pre-provision operating profit is seen rising 32.20 per cent YoY to Rs 5,880 crore. Net interest margin (NIM) is seen at 2.9 per cent against 2.8 per cent each in September and the year-ago quarter.

"We expect overall profitability to remain healthy, but moderate QoQ due to lower recovery from NPA, unlike in 2Q. Slippages to remain largely flat QoQ, but better recoveries/write-offs to drive down NPAs," it said.

Route Mobile Q3 preview

Arihant Capital Markets is expecting Route Mobile to report 12-13 per cent revenue growth and margin at nearly 12 per cent, similar to September quarter. "Across the board, BFS and e-commerce spaces are seeing weakness due to reduction in transactions as a macroeconomic concern, but volume is increasing in (CPaaS) other use cases. The company is focusing on an app where it can minimise frauds by authenticating Aadhar via SIM Card. But that is it is still a work in progress," it noted.

Arihant  Capital Markets said Route mobile has consecutively reported a good set of numbers for the past few quarters and the December quarter should see a good set of numbers since Q3 is generally Route Mobile's strongest quarter).

Gland Pharma Q3 preview

Nirmal Bang Institutional Equities expects Gland Pharma to report a flat YoY profit at Rs 272.90 crore in the December quarter. Profit would, though, be up 13 per cent sequentially. Sales are seen rising 0.6 per cent YoY to Rs 1,069.60 crore. Ebitda is seen falling 4.1 per cent YoY to Rs 334.60 crore. Ebitda margin is seen coming in at 31.30 per cent against 32.80 per cent YoY.

"Revenue is expected to grow by 2.4 per cent QoQ due to a gradual recovery in Emerging Markets (EM) growth and currency tailwinds. US revenue should improve QoQ with normalisation of supply chain, new launches as well as currency tailwinds. EBITDA margin is likely to decline by 153 bps YoY to 31.3 per cent due to persistent cost inflation and negative operational leverage," Nirmal Bang Institutional Equities said.

KEI Industries Q3 results preview

KEI Industries' Q3 revenue may rise 17 per cent YoY amid continued momentum in infra & realty projects, and growth in the retail business, Elara Securities said in a note. The brokerage sees revenue coming in at Rs 1,831 crore against Rs 1,564 crore YoY. Profit for the quarter is seen rising 26.8 per cent YoY to Rs 128.40 crore compared with Rs 101.20 crore in the same quarter last year. Ebitda is seen jumping 20.9 per cent YoY to Rs 189.60 crore from Rs 156.80 crore.