Q3 results previews: Adani Ports, Ambuja Cements, Bharti Airtel, Hero MotoCorp

A host of companies will announce their December quarter results on Tuesday. Among them are three Adani group firms namely Adani Ports & SEZ, Ambuja Cements and Adani Green Energy, Sunil Mittal-led Bharti Airtel and Munjal's Hero MotoCorp. Adani Ports & SEZ is expected to report a double digit growth in profit; Ambuja Cements and Hero MotoCorp ae seen logging single digit declines in profits; Bharti's YoY profit growth could see a sharp jump, analysts projected. Estimates for Adani Green Energy are unavailable.

Adani Ports Q3 preview

PhillipCapital expects Adani Ports to report a 12.4 per cent year-on-year (YoY) rise in net profit at Rs 1,661.90 crore compared with Rs 1,478.80 crore in the corresponding quarter last year. Sales are seen rising 29.8 per cent YoY to Rs 4,930.10 crore from Rs 3,797.10 crore in the same quarter last year. Ebitda is seen rising 24.4 per cent YoY to Rs 3,022.60 crore from Rs 2,430.60 crore. Ebitda margin is seen falling to 61.3 per cent in December quarter from 62.6 per cent in September and 64 per cent in the year-ago quarter. PhillipCapital expects container volumes to remain subdued. It sees impact of lower volume and higher operating cost on quarterly results. The brokerage has assumed effective tax rate of 17 per cent in December quarter against 9 per cent in September quarter.

Ambuja Cements Q3 preview

Emkay Global expects Ambuja Cements to report a 9.6 per cent YoY drop in net profit at Rs 287 crore compared with Rs 317.40 crore in the same quarter last year. Sales are seen rising 5.1 per cent YoY to Rs 3,865 crore from Rs 3,679 crore in the year-ago quarter. Ebitda is seen dropping 9.2 per cent YoY to Rs 515.50 crore from Rs 568 crore, with Ebitda margin falling to 13.4 per cent from 15.4 per cent YoY.

"Volumes are expected to increase 3 per cent YoY (5 per cent QoQ) to 7.4 mt, while realisations should increase 2 per cent YoY. Total cost/tonne is estimated to increase 4 per cent YoY (down 4 per cent QoQ). Accordingly, Ebitda/tonne might fall 12 per cent YoY (up 62 per cent QoQ) to Rs 700," Emkay Global said.

Bharti Airtel Q3 preview

Axis Securities said it expects Bharti Airtel to post a healthy recovery in terms of curtailing losses and reporting a profit. Revenues are likely to grow 4.6 per cent QoQ, led by higher wireless revenues in India as well as in Africa, it said. Operating margins are likely to witness marginal expansion due to lower commission costs and S&M expenses, the brokerage added. On a YoY basis, it sees Bharti's profit to jump 89 per cent to Rs 3,120 crore and revenues rising 19.7 per cent to Rs 35,750 crore. Ebitda margin is seen at 52 per cent against 49 per cent YoY. Brokerage Prabhudas Lilladher has factored in a subscriber growth of 15 lakh for the quarter to 32.78 rore, coupled with an average revenue per user (ARPU) increase of 3.5 per cent sequentially to Rs 196.

Hero MotoCorp Q3 preview

For Hero MotoCorp, a strong festive demand could not be sustained later, resulting in a 4 per cent YoY decline in volumes in December quarter. Nirmal Bang Institutional Equities expects Hero MotoCorp’s revenue to grow roughly 2 per cent (down 12 per cent QoQ). Average selling price (ASP) is expected to improve 6 per cent YoY (2 per cent QoQ). It expects Ebitda margin to improve 60 bps QoQ but decline by 20 bps YoY. Overall, it sees adjusted profit for Hero MotoCorp at Rs 663.90 crore, down 3.2 per cent YoY. Revenue is seen at Rs 8,017.10 crore, up 1.7 per cent. Ebitda margin is seen at 12 per cent.  

 

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