IRFC, Nykaa, JSPL, ONGC, Patanjali Foods, Info Edge and HAL to share Q1 results today. Analyst views

A dozen of companies will announce their June quarter results on Friday including Indian Railway Finance Corporation Ltd, Oil And Natural Gas Corporation Ltd (ONGC), Hindustan Aeronautics Ltd, Apollo Hospitals Enterprise Ltd and Jindal Steel & Power will announce their June quarter results on Friday. Others scheduled to report quarterly earnings include Info Edge, Muthoot Finance, Patanjali Foods, FSN E-Commerce Ventures (Nykaa) and NMDC, among others.

While Q1 preview for IRFC is unavailable, ICICI Securities expects ONGC to report a 56 per cent YoY drop in profit at Rs 6,700 crore on a 27 per cent YoY drop in sales at Rs 30,700 crore. For HAL, InCred Equities expects sales to grow 20 per cent YoY, driven by strong execution in services (R&O) segment and some deliveries of manufacturing orders.

"We expect Ebitda margin of 24 per cent, which is an improvement YoY from 22.8 per cent. Higher other income yoy due to strong net cash position is likely to boost PAT growth," InCred Equities said while expecting adjusted profit for HAL at Rs 700.50 crore and sales at Rs 4,347 crore.

In the case of Apollo Hospitals, Prabhudas Lilladher expects profit to drop 47.4 per cent YoY to Rs 166.90 crore on a 14.6 per cent YoY rise in sales at Rs 4,348.10 crore. "We expect occupancy to remain steady QoQ. Losses from 24x7 are expected to remain elevated. SAP revenues to see strong YoY growth. Adjusted for 24x7 losses, we see 15 per cent YoY Ebitda growth. Commentary on 24x7 losses and outlook for hospital segment occupancy will be key monitorables," PL said in a note.

In the case of Nykaa, Falguni Nayar-led company said it expects consolidated revenue for the June quarter to grow in the mid-twenties on year-on-year (YoY) basis. In a filing to BSE recently, Nykaa said consumption in the Beauty and Personal Care (BPC) category continued to remain strong in the June quarter, in line with longer-term trajectory, despite a slowdown in discretionary spends.

HDFC Institutional Equities is building in a 26 per cent YoY revenue growth for Nykaa at Rs 1,440 crore, primarily driven by BPC.

"Expect BPC/Fashion revenue to clock 24 per cent/10 per cent YoY growth respectively. BPC growth is likely aided by its flagship sale event ‘Pink summer sale’," it said.

In the case of JSPL, Nuvama said JSPL should be an outlier turning in a higher Ebitda per tonne on the back of lower iron ore and thermal coal cost and absence of one-off cost. Non-ferrous companies too should report a dip in Ebitda owing to a fall in base metal prices, partially offset by softer thermal coal prices, it said.

Antique Stock Broking sees Patanjali's profit at Rs 266.90 crore, up 10.6 per cent. Sales are seen rising 16.9 per cent YoY to Rs 8,432.60 crore.

On Info Edge, analyst noted that the IT sector hiring is coming off a high base but hiring activity in other sectors like the BFSI and travel has remained strong.

"Standalone revenue is expected to increase by 2.7 per cent QoQ and EBITDA margin will narrow by 99 bps QoQ to 38.1 per cent. Naukri's margin will remain in the 60 per cent-plus range," HDFC Securities said.

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