Q2 Results: Insights from Brokerages on Zomato, IndiGo, and Titan Company

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Multiple companies are set to reveal their results for the quarter ending on September 30, 2023. Among these companies are Titan Company Ltd, Zomato Ltd, and InterGlobe Aviations Ltd (IndiGo). Various brokerage firms have put forth their expectations for these companies in the second quarter of the ongoing financial year:

"Anticipating Q2 Results: Insights from Brokerages on Zomato, IndiGo, and Titan Company"

Titan Company:

  • According to Phillip Capital, Titan’s revenue is projected to reach Rs 9,737.1 crore in the September 2023 quarter, marking a 12 percent year-on-year (YoY) increase but a 12.6 percent quarter-on-quarter (QoQ) decline. EBITDA is expected to be Rs 1,050 crore, representing a 15 percent YoY decrease due to a 335 basis points (bps) fall in EBITDA margins, which are estimated to be 10.8 percent. The net profit is forecasted to decline by 16 percent to Rs 718.3 crore in the quarter.
  • Sharekhan, however, expects Titan’s net sales to reach Rs 11,234 crore, a 23 percent YoY increase, while EBITDA margins are anticipated to drop by about 200 bps to 11.6 percent. The company may report a flat net profit of Rs 852 crore.

InterGlobe Aviation (IndiGo):

  • According to Elara Capital, IndiGo is expected to report revenue of Rs 16,006 crore, which is up 28 percent YoY but down 4 percent QoQ in the Q2FY24. EBITDA is anticipated to be Rs 3,355 crore, a 31 percent QoQ decrease but a 173 percent YoY increase, while the net profit is projected to be Rs 1,459 crore, half the QoQ figure.
  • Prabhudas Lilladher expects IndiGo to report a 3 percent YoY decline in sales due to a seasonal weak quarter, lower yields, and load factor. They anticipate margin expansion against forex losses due to a decrease in crude costs. Pax travel has grown 35 percent YoY to 9 million.

Zomato:

  • Kotak Institutional Equities predicts that Zomato will report net sales of Rs 2,607 crore, which is a 57 percent YoY increase and an 8 percent QoQ increase. They expect EBITDA to reach Rs 9.9 crore, turning positive on both QoQ and YoY bases. EBITDA margins are forecasted to be 0.4 percent for Q2FY24, and the company is projected to turn a profit on a YoY basis, reporting a net profit of Rs 42.6 crore, which is a 2,030 percent QoQ increase.
  • B&K Securities estimates that Zomato will achieve revenue of Rs 2,803 crore, marking a 69 percent YoY increase and a 16 percent QoQ increase. They anticipate EBITDA margins of 0.6 percent and a net profit of Rs 71 crore, which is a 3,500 percent QoQ increase. The company had reported a net loss in the same period the previous year.

These expectations provide insights into the performance of these companies in the second quarter of the financial year.

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