Q2 results today: PNB, Vodafone Idea, Canara Bank, Asian Paints, Indian Bank & ACC previews

Dozens of companies including banks such as Punjab National Bank Ltd (PNB), Canara Bank Ltd and Indian Bank Ltd, telecom operator Vodafone Idea Ltd, paints maker Asian Paints Ltd and cement maker ACC Ltd will declare their September quarter results today. The three state-run banks are expected to report year-on-year (YoY) profit growth in excess of 40 per cent. Asian Paints too is seen reporting about 60 per cent surge in YoY profits. ACC may report profit against losses in the year-ago quarter. Here's what brokerages say:

Indian Bank Q2 results preview

In the case of Indian Bank, Phillip Capital expects profit after tax to grow 44.4 per cent YoY to Rs 1,769.60 crore compared with Rs 1,225.20 crore in the same quarter last year. NII is seen growing 24.70 per cent YoY to Rs 5,840.20 crore from Rs 4,684 crore YoY. NII growth is expected to be higher than credit growth on YoY basis. Deposit growth is seen in single digits due to excess SLR. All eyes would be on the performance of restructured portfolio. Phillip Capital expects the agri non-performing assets to increase sequential slippage.

PNB Q2 results preview

PNB had in its Q2 business update suggested that its gross advances grew 14 per cent YoY while its total deposit base rose at 10 per cent YoY, with CASA registering a modest increase of 2.6 per cent YoY. For the quarter, Motilal Oswal Securities expects PNB to report a multi-fold jump in profit (233 per cent) at Rs 1,369.80 crore on 17.1 per cent YoY rise in NII at Rs 9,685.10 crore. It expects loan growth to remain steady and that asset quality to see some improvement. All eyes would be on any rise in opex and the pace of reduction in net NPA and return on asset (RoA).

Canara Bank Q2 results preview

For Canara Bank, Kotak Institutional Equities expects the private lender to report healthy growth of 12 per cent YoY in pre-provision operating profit, driven by revenue growth of 12 per cent. It sees earnings growth to be stronger at 48 per cent YoY (Rs 3,748 crore), driven by lower provisions. NII is seen at Rs 8,752.80 crore, up 17.7 per cent YoY. NIM, it said, is expected to see a sequential decline, driven by a steady increase in the cost of deposits.

"We expect slippages at 1.4 per cent and the trend of NPL decline will continue. We expect the discussion to focus on operating profit growth and its drivers given that asset quality has improved significantly for the bank. Provisions are likely to be lower QoQ at 1.2 per cent, mainly toward improving PCR," it said.

Asian Paints Q2 results preview

Kotak Institutional Equities expects the paints maker to report a moderation in YoY growth trends for decorative paint companies, partly due to the late festive season this year. It expects a deceleration in standalone volume and value growth to 4 per cent and 2.5 per cent, respectively. This is against a growth of 10 per cent in volume and 7 per cent in value in the June quarter. The domestic brokerage is building in 7 per cent growth in subsidiaries, translating into consolidated revenue growth of 3 per cent (Rs 8,717 crore). Profit is seen jumping 62.90 per cent YoY to Rs 1,275 crore.

ACC Q2 results preview

The Adani group firm is seen reporting a profit of Rs 34.90 crore compared with a loss of Rs 8.7 crore in the year-ago quarter. Sales are seen rising 7 per cent YoY to Rs 428.20 crore compared with Rs 398.70 crore in the year-ago quarter. Ebitda margin is seen at 14.6 per cent as cost pressure eased. Axis Securities said Ebitda per tonne will be higher on YoY basis but realisation will be lower.

Vodafone Idea Q2 preview

Emkay Global expects subscriber loss for Vodafone Idea to continue in Q2, with loss of 36 lakh subscribers against 45 lakh loss in the June quarter. It sees average revenue per user (ARPU) to increase 1.8 per cent sequentially to Rs 142, on mix-change led by the addition of 6 lakh 4G subscriber additions and a higher number of days in Q2. Overall revenue is likely to be flat, it said, adding that margin is likely to decline 45 basis points sequentially owing to an increase in network expense, with a higher number of days in Q2 against Q1.

"We expect Vodafone Idea's revenue to rise 0.4 per cent QoQ to Rs 10,700 crore, despite subsidiary losses, aided by ARPU growth on rise in penetration of unlimited plans in Q2FY24E. We expect Ebitda to improve 0.2 per cent QoQ on operating leverage. Net loss is seen at Rs 7,770 crore (nil tax rebate)," it said.

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