Q2 result previews: Zomato, Jindal Steel, Eicher Motors, Page Industries & Trent

Dozens of companies will disclose September quarter earnings today. Among them are Zomato, Jindal Steel & Power (JSPL), Eicher Motors, Page Industries & Trent. Analyst estimates suggest Zomato is seen reporting losses; JSPL and Trent are seen reporting sharp fall in profits; Eicher Motors is seen reporting over 80 per cent jump in YoY profits while Page Industries may report 13-15 per cent rise in YoY profit, analyst estimates suggest. 

Zomato: The online food aggregator is likely to report losses for September quarter. Kotak Institutional Equities pegs Zomato loss at Rs 149.20 crore in September quarter compared with a loss of Rs 185.70 crore in June and a loss of Rs 435.10 crore in the year-ago quarter. It expects sales for the online food aggregator to surge 48.2 per cent YoY to Rs 1,517.90 crore from Rs 1,024.20 crore in the year-ago quarter. Kotak is building in a 7 per cent sequential revenue growth on account of higher food delivery orders, higher take rates and recovery in advertising business for the standalone business (ex-Blinkit). Edelweiss sees core loss at Rs 165.20 crore. It sees the quarterly revenue at Rs 1,538, up 50 per cent. JM Financial sees Zomato's losses at Rs 151.40 crore. This brokerage expects the company to report improvement in profitability, with adjusted Ebitda loss narrowing 210 basis points sequentially and 21.8 percentage points YoY. Contribution margin is likely to improve to 3.1 per cent against 2.8 per cent in June quarter, it said. 

Jindal Steel & Power (JSPL): Motilal Oswal expects the steelmaker to report a profit of Rs 461 crore, down 82.2 per cent YoY. It sees sales falling 12 per cent to Rs 11,975.50 crore. PhillipCapital expects Jindal Steel to report a 68 per cent YoY drop in net profit at Rs 834.10 crore on 7 per cent fall in sales at Rs 12,611 crore. This brokerage sees Ebitda per tonne falling to Rs 16.6 per tonne from Rs 22.9 in June quarter and Rs 33.8 in the year-ago quarter.

Realisations to fall 10 per cent QoQ while the volumes to jump 11 per cent, it said. A sharp fall in Ebitda per tonne QoQ would partially be due to the fact that last quarter's figures were inflated due to one-off gains, it said.

Eicher Motors: Sharekhan expects Eicher Motors to report 85.4 per cent YoY rise in net profit at Rs 636.50 crore on 57.5 per cent YoY rise in sales at Rs 3,437.50 crore. Ebitda margin is seen Rs 24.9 per cent. Eicher Motor's standalone results are expected to remain firm and Ebitda growing at 8.8 per cent QoQ, led by 11 per cent volume growth, operating leverage benefits, partially offset by unfavorable mix. Motilal Oswal sees Eicher Motors Q2 profit at Rs 691 crore. It sees sales rising 62 per cent YoY to Rs 3,643.50 crore. The ramp-up in exports has been strong, while a domestic recovery is aided by the Hunter launch and easing semiconductor supplies, the brokerage said. The recent price hikes and operating leverage are expected to dilute the impact of higher raw material cost.

Page Industries: Centrum Broking expects Page Industries to report 15.5 per cent YoY in profit at Rs 185.40 crore on a 15 per cent rise in revenue at Rs 1,246.60 crore. Ebitda is seen rising 15.8 per cent to Rs 270.40 while Ebitda margin is seen at 21.70, up 20 basis points YoY. Motilal Oswal expects Page Industries to log 15.2 per cent YoY rise in net profit at Rs 184.90 crore on 13 per cent YoY rise in sales at Rs 1,224.90 crore. A marginal YoY gross margin expansion would be led by price increases and lower yarn cost YoY, it said. One to watch out for athleisure demand momentum, given improved mobility. Investors would also watch out for commentary on traction in Kids’ wear and rural expansion.

Trent: The retailer is expected to report a strong revenue performance, led by growth in existing stores (strong SSSG), the scale up in the recently added stores, and aggressive store additions. That said, is profit is seen falling 30.5 per cent YoY to Rs 94.3 crore, Motilal Oswal said, which expect seven new store additions for Westside and 15 for Zudio. This brokerage sees revenues rising 77 per cent YoY to Rs 1,807 crore. Centrum also sees profit falling 27.8 per cent YoY to Rs 83 crore on a 63.6 per cent rise in sales. Ebitda margin is seen at 13.6 per cent.

Also Read: Eicher Motors shares slip 2% ahead of Q2 earnings; here’s what to expect