Adani Ports, Auro Pharma, Apollo Hospitals Q2 previews: Here's what analysts say

A host of large cap companies are set to announce their results for the quarter ended on September 30, 2023. The list includes Adani Ports and Special Economic Zone Ltd, Aurobindo Pharma Ltd and Apollo Hospital Enterprises Ltd. Here's what various brokerage firms expects from these companies in the second quarter of the ongoing fiscal year:

Apollo Hospital Enterprises
Kotak Institutional Equities expects Apollo Hospital to report a revenue of Rs 4,782.7 crore, up 13 per cent on a year-on-year (YoY) basis and up 8 per cent on a quarter-on-quarter (QoQ) basis. Ebitda may come in at Rs 606.4 crore, up 7 per cent YoY and 19 per cent QoQ, with Ebitda margins seen at 12.7 per cent, falling 63 basis points (bps) on a yearly basis.

"On account of the slight delays in rain, we expect a softer Q2, as compared to other years. Accordingly, we expect healthcare revenues to grow in Q2FY24, after a dampening Q1FY24 for the Tamil Nadu cluster, led by sequentially higher occupancies. We expect HealthCo sales to grow, driven by growth in offline pharmacy distribution sales on account of the store expansion," it said.

Prabhudas Lilladher expects sales of Apollo Hospitals to come in at Rs 4,757.20 crore, up 12 per cent YoY and 8 per cent QoQ. Ebitda is seen at Rs 591.1 crore, rising 5 per cent YoY and 16 per cent QoQ, with margins coming in at 12.4 per cent for the quarter. The company may report a net profit of Rs 227.10 crore, up 11 per cent YoY and 36 per cent QoQ.

"We expect occupancy to improve QoQ on seasonality. Losses from 24x7 are expected to remain elevated. SAP revenues to see strong QoQ and YoY growth. Adjusted for 24x7 losses, we see 11 per cent QoQ and 7 per cent YoY Ebitda growth. Commentary on 24x7 losses and outlook for hospital segment occupancy will be key monitorable," Prabhudas Lilladher added.

Aurobindo Pharma
Axis Securities pegs Aurobindo Pharma's revenue at Rs 6,900 crore, flat sequentially but up 20 per cent YoY. Ebitda may come in at Rs 1,200 crore, surging 52 per cent YoY and 4 per cent QoQ, with Ebitda margins likely to come in at 17.4 per cent for the quarter. It expects the drugmaker to report a net profit of Rs 660 crore, up 61 per cent YoY and 6 per cent QoQ.

"US sales $415 million (up 3 per cent QoQ) led by stable pricing in oral solids and injectables. Low Raw material prices like APIs & Organic solvent could improve gross margins YoY," said Axis Securities. "The growth is likely to be led by value-added new launches, market share expansion, and strong momentum in the Indian market."

Sharekhan expects Aurobindo Pharma to report a net sale of Rs 6,252 crore in Q2FY24, up 10 per cent YoY but down 8 per cent QoQ. Operational margins are likely to expand 259 bps YoY and 38 bps QoQ to 17.3 per cent. The drugmaker may report a net profit of Rs 652 crore, up 42 per cent YoY and 7 per cent QoQ.

"Revenue growth to be driven by injectable sales , pick up in oral solids and lesser price erosion in the base products," said Sharekhan. "Uptick in high margin business like injectables to increase margins and healthy operations to drive healthy profitability."

Adani Ports & Special Economic Zone
Phillip Capital pegs Adani Ports' revenue to come in at Rs 6,344.3 crore, flat sequentially but up 22 per cent YoY. Ebitda may remain flat QoQ to Rs 3,783 crore, but rising 16 per cent YoY; with Ebitda margins contracting both YoY and QoQ to 59.6 per cent. Net profit of the company may drop 14 per cent QoQ to 1,819.1 crore.

Acquisition impact may be seen on YoY numbers, said Phillip Capital. Margin impact is seen in revenue mix and international operations, it said. "Assumed forex loss of Rs 350 crore in Q2FY24 against a gain of Rs 884 crore in Q1FY24. We assumed an effective tax rate of over 12 per cent in Q2FY24," he said.

B&K Securities sees Adani Ports's revenue to rise 25 per cent YoY and 4 per cent QoQ to 6,484.3 crore in Q2FY24. It sees EBITDA margins falling to 60 per cent from 62.6 percent in the year-ago period. Net profit may remain flat at Rs 2,144.6 crore, increasing 2 per cent QoQ and YoY.

Kotak models 19 per cent YoY improvement in revenues, driven by a combination of organic volume growth (low double digit), realization growth and boost from Haifa port and logistics business. Underlying comparable volume growth is driven by very strong growth in container volumes, up 19 per cent YoY, it said.

"We model a low double-digit yoy growth in Ebitda, assuming increasing share of lower margin businesses- Haifa port, logistics," Kotak added. However, it expects Ebitda margins to be 247 bps to 60.1 per cent in the second quarter of the ongoing financial year.


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