Q2 result previews: LIC, M&M, Hindalco, Info Edge, ZEE Entertainment & Sun TV

Hundreds of companies will disclose September quarter earnings on Friday. Among them are LIC, Mahindra & Mahindra (M&M), Hindalco Industries, Info Edge, ZEE Entertainment & Sun TV. Analyst estimates suggest

LIC, Hindalco, ZEE Entertainment and Sun TV may report a fall in Q2 profits. Info Edge is seen reporting a strong 40 per cent YoY growth in bottom line while M&M is also seen clocking a double digit profit growth for the quarter.

LIC: Emkay Global expects LIC to report a 19 per cent YoY drop in net profit at Rs 1,213.30 crore for September quarter compared with Rs 1,504 crore in the corresponding quarter last year. APE is seen growing 15 per cent YoY to Rs 13,286.50 crore from Rs 11,548.80 crore. VBN is seen rising 17 per cent YoY to Rs 1,854.10 crore from Rs 1,583 crore, with VBN margin seen at 13.95 per cent, up 24 bps over   13.71 per cent YoY.

"With better returns in equity markets in Q2FY23, we expect LIC's AUM to grow 5 per cent sequentially to Rs 43,07,100 crore in Q2FY23 and by 9 per cent YoY in H1FY23," Emkay Global said.

Mahindra & Mahindra (M&M): Brokerage Sharekhan sees M&M (M&M and MVML, consolidated) reporting a 16.3 per cent YoY rise in net profit at Rs 1,961.50 crore compared with Rs 1,686.70 crore in the year-ago quarter. Sales are seen climbing 56 per cent YoY to Rs 20,750.20 crore from Rs 13,305.40 crore in the year-ago quarter. Ebitda margin is seen falling 117 basis points YoY to 11.3 per cent from 12.5 per cent YoY. On a sequential basis, margins may drop 60 basis points, driven by inferior product mix and lagged impact of raw material prices. Revenues are seen rising 5.8 per cent QoQ, aided by 21 per cent increase in automotive revenues, bu partially offset by 21 per cent decline in tractor revenues.

Hindalco Industries: Brokerage Motilal Oswal sees Hindalco Industries reporting a 33.1 per cent YoY fall in net profit at Rs 2,306.40 crore for September quarter on a 5.1 per cent YoY rise in sales at Rs 50,077.50 crore. Ebitda for the quarter is seen at Rs 5,547.60 crore, down 26.4 per cent. Motilal Oswal said a commentary on thermal coal cost and availability of linkage is important. The brokerage said management guidance on Novelis Ebitda per tonne and demand  for downstream products will be critical. Besides, investors would seek clarity on the energy costs and hedges in Europe for  Novelis as well as management guidance on domestic capex and commissioning timelines.

Info Edge: Nuvama Institutional Equities expects Info Edge to report a 41 per cent YoY rise in core profit at Rs 150 crore for September quarter on a 42 per cent YoY rise in sales at Rs 514.90 crore. Ebitda for the quarter is seen at Rs 166.60 crore, up 50 per cent.

Edelweiss said revenue growth will be led by growth in the core recruitment business on the back of strong cash collections of Rs 420 crore in June quarter. Revenue for Jeevansathi is expected to decline 22 per cent QoQ, as the company has decided to provide most of its services for free while revenues for 99acres (up 6 per cent QoQ) and Shiksha (down 10.7 per cent QoQ), it would be a mixed trend. Ebitda margin is expected to remain flat as strong growth in recruitment and heavy ad spends in real estate and matrimony continue. Nuvama said one would watch the hiring trends in non-technology sectors, recovery in the real estate sector and update on new investment

ZEE Entertainment, Sun TV: Emkay said a slow improvement in market share gains, along with converting only few FTA channels to pay, is likely to accentuate pain, resulting in another weak quarter. Heightened investments in content, aimed at recovering the market share, would lead to disappointment on margin print, it said.

For another quarter, Sun TV's performance is likely to be better than ZEE’s, given that the former has managed to maintain its market share in core markets, Emkay said. The brokerage expects ZEE to report 41 per cent YoY drop in profit at Rs 159.40 crore on a 3.8 per cent fall in sales at Rs 1,904 crore. Ebitda margin is seen falling 749 bps YoY to 13.3 per cent from 20.8 per cent.

For Sun TV Network it sees profit dropping 6.3 per cent YoY to Rs 368.50 crore on 3.3 pr cent rise in sales at Rs 856.20 crore.

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