Q4 results previews: Vedanta, Tech Mahindra, Bajaj Finance, IndusInd Bank & Nestle India

A host of largecap companies including Vedanta Ltd, Tech Mahindra Ltd (techM), Bajaj Finance, IndusInd Bank & Nestle India will be reporting their March quarter results today. While Tech Mahindra and Vedanta are seen reporting weak set of numbers, Nestle India and Bajaj Finance may report strong results, analyst previews suggest. For IndusInd Bank, results are likely to be muted in terms of bottom line.

Tech Mahindra Q4 results preview

Sharekhan said TechM is expected to report a revenue decline of 1.3 per cent sequentially in constant currency (CC) terms due to continued weakness in the communication vertical. EBIT margin is expected to recover 170 basis points QoQ, following termination of unprofitable contracts. It expects TechM to report 45 per cent YoY drop in profit at Rs 729 crore compared with Rs 1,330 crore YoY. Sales are seen falling 5.8 per cent to Rs 12,921 crore from Rs 13,718 crore YoY. Operating profit margin is seen at 10.6 per cent against 14.7 per cent YoY.

"We expect the company to report revenue growth of 0.7 per cent on a QoQ basis. Its margins are likely to expand due to strong growth in volume and reshuffling of the portfolio. Watch out for a) Deal TCVs an pipeline in the communication vertical, b) Pricing scenario, c) Attrition, d) Outlook on growth/margins/DSO days, and e) Commentary on the 5G rollout," Axis Securities said.

Nestle India Q4 results preview

Nestle India's revenue growth is seen growing 8 per cent YoY, with India business is likely to see 9 per cent YoY growth, while international business is expected to decline 5 per cent YoY. Adjusted PAT is likely to grow 18 per cent YoY, largely driven by 16 per cent YoY operating profit growth, Sharekhan said. Motilal Oswal sees Q4 profit for Nestle India growing 15.8 per cent at Rs 869.40 crore and sales 8.5 per cent at Rs 5,242.50 crore.

"We expect sales growth of 8.5 per cent YoY and the growth momentum will continue. We expect a higher contribution from out-of-home consumption. Expect gross margin expansion of 300 bps YoY and Ebitda margin expansion of 110 bps," Motilal Oswal said.

Vedanta Q4 results preview

Analysts said Vedanta's March quarter numbers would be impacted by lower commodity prices across key segments and weak volumes in the oil and gas segment. They believe investors would focus on the management commentary on the parent debt situation. Any guidance on dividend payout and commentary on the demerger status, in addition to guidance on volumes and cost of production across verticals would be key monitorables, they said. Motilal Oswal expects profit for Vedanta to fall 39.4 per cent YoY to Rs 1,887 crore. It sees sales falling 9.9 per cent YoY to Rs 34,186 crore. PhillipCapital sees adjusted profit (after Minority) to be at Rs 1,548.80 crore. It sees sales at Rs 34,411 crore. This brokerage said Aluminium, Copper and Zinc International segments may report decline in volumes sequentially. Volumes for iron ore could flattish, it said.

IndusInd Bank Q4 results preview

Kotak expects IndusInd Bank to report 1.3 per cent drop in Q4 profit at Rs 2,014 crore on 16.6 per cent YoY rise in NII at Rs 5,443 crore. It expects a flat PPOP as the benefit of strong loan growth could be offset by higher cost of funds while operating expenses are likely to grow at a faster rate, given the investments in the business.

"Loan growth was healthy at 18 per cent YoY, while NIM (reported) is likely to be stable QoQ at 4.2 per cent. Non-interest income would be subdued due to lower treasury income and other fee income. Deposit growth at 15 per cent YoY. We see RoE at 15 per cent this quarter. We expect provisions to keep declining, led by lower slippages and better asset-quality trends. Both the MFI and vehicle finance portfolio are showing negligible risk. We are building in slippages of 2 per cent," it said.

All eyes would be on the cost of funds and the ability to sustain current levels of loan growth.

Bajaj Finance Q4 results preview

Bajaj Finance Ltd is seen reporting 15-20 per cent jump in year-on-year (YoY) net profit for the March quarter on a 28-30 per cent surge in net interest income (NII). Net interest margin (NIM) may fall on both sequential and YoY basis, analysts said. While new loans booked during the quarter were lower due to RBI restrictions, Bajaj Finance has been able to deliver robust AUM growth of 34 per cent YoY in Q4FY24. All eyes would be on commentary on sustenance of growth momentum and scale-up of new products, analysts said.

Nirmal Bang sees profit at Rs 3,661 crore, up 16 per cent YoY. It sees NII at Rs 9,580 crore, up 29 per cent. It sees NIM at 10 per cent, down 44 basis points over year-ago’s 10.5 per cent. Kotak expects Bajaj Finance's profit to grow at 18.3 per cent and NII at 28.2 per cent.