Numerous companies, including major IT firms like Wipro Ltd, LTIMindtree Ltd, and Persistent Systems Ltd, as well as prominent banks such as IndusInd Bank Ltd and Bandhan Bank Ltd, are scheduled to announce their quarterly financial results today. Let’s delve into what can be expected from these companies:
Wipro’s Q2 Results: Wipro, a leading IT company, is projected to report relatively modest growth compared to other tier I IT firms. The company’s guidance for the December 2023 quarter appears to be cautious. According to Kotak Institutional Equities, Wipro is expected to reveal an 11.8% YoY increase in net profit, reaching Rs 2,972 crore, with total sales rising by 1.3% YoY to Rs 22,930 crore. EBIT margin is anticipated to expand by 90 basis points QoQ or 167 basis points YoY, settling at 16%. Wipro is also expected to guide for a revenue change ranging from a 1% decline to 1% growth for the December quarter.
LTIMindtree’s Q2 Results: LITMindtree may see a 7.3% YoY decline in profits, amounting to Rs 1,102 crore, as suggested by HDFC Institutional Equities. This brokerage predicts that the IT firm’s net sales will rise by 7.9% YoY to Rs 8,878 crore. The EBIT margin is projected to be 15.5%, down 118 basis points QoQ or 200 basis points YoY.
Persistent Systems Q2 Results: Kotak expects Persistent Systems to post an 11.7% YoY profit increase, reaching Rs 245.70 crore, with a 17% surge in sales, amounting to Rs 2,396.80 crore. The EBIT margin is predicted to contract by 153 basis points QoQ or 117 basis points YoY, settling at 13.4%. The company is likely to witness flat Total Contract Value (TCV) and Annual Contract Value (ACV) due to a slowdown in decision-making and prolonged deal cycles. There’s a growing reliance on structured deals due to the decline in short-cycle programs.
Bandhan Bank’s Q2 Results: In its Q2 business update, Bandhan Bank reported a 12% YoY growth in its loan book, with collection efficiency in the microfinance portfolio remaining stable at 98% sequentially. The efficiency improved for the non-MFI book, reaching 99%. Motilal Oswal expects Bandhan Bank to report a 25.9% YoY profit increase, amounting to Rs 751.90 crore. It also predicts that net interest income (NII) will rise by 14.5% YoY to Rs 2,512 crore. The brokerage anticipates that the Net Interest Margin (NIM) will stay within a narrow range, with credit costs and asset quality showing signs of improvement.
IndusInd Bank’s Q2 Results: Nomura India forecasts a 23% YoY profit increase in Q2 for IndusInd Bank, reaching Rs 2,210 crore. Net Interest Income (NII) is projected to rise by 17% YoY to Rs 5,020 crore, with a NIM of 4.3%. ICICI Securities expects a 28% surge in net profit, totaling Rs 2,287.80 crore, along with a 16.3% YoY increase in NII, reaching Rs 5,002.40 crore. Pre-provision operating profit is anticipated to rise by 13.9% YoY to Rs 4,008 crore.
Bajaj Auto’s Q2 Results: Prabhudas Lilladher predicts a 6% YoY revenue growth for Bajaj Auto, reaching Rs 10,812 crore. This growth is attributed to an 8% YoY decline in volume but an improved product mix leading to higher average selling prices. EBITDA margin is expected to increase by 220 basis points, reaching 19.4% YoY, thanks to lower input costs and price hikes. Profit after tax (PAT) is projected to rise by 13.4%, amounting to Rs 1,734 crore.