Earnings Today: Can Bajaj Auto’s Exports Help Overturn Its Demonetisation Blues?

Automobile manufacturer Bajaj Auto Ltd., public sector lender Bank of Baroda and engine manufacturer Cummins India Ltd. are among the companies to report their January-March quarter earnings today.

Bajaj Auto, which has seen its exports outperform expectations in the fourth quarter, may report a 4.6 percent profit growth. Revenue is expected to fall 11.4 percent from the same quarter last year, while operating margin is forecast to slightly narrow, according to Bloomberg consensus estimates.

The spillover effect of demonetisation, and the impact of the transition to Bharat Stage-IV emission norms will be key factors to look out for.

What To Watch

• Impact of 9.8 percent volume decline on revenue.
• Product mix and impact on margins.
• Recovery in export markets.

Bank of Baroda is expected to post a profit, compared to a loss of Rs 3,230 crore in the same period last year, according to Bloomberg consensus estimates. Net interest income, the core income for lenders, is expected to see a marginal 1.2 percent growth. The public sector lender’s slippages are seen between Rs 3,000 crore and Rs 4,000 crore.

What To Watch

• Expectations around financial year 2017-18 growth, operating expenses, margins.
• Management commentary on sale of non-core investments.
• Stressed asset addition, mainly from international book.

Cummins India is expected to report a profit growth of 18.5 percent, according to Bloomberg consensus estimates. Revenue may increase 24 percent, while margins are likely to remain flat. Export growth will be one key factor to watch out for as the company had a lower base in the corresponding quarter last year.

What To Watch

• Contraction in gross margin due change in sales mix.
• Operating leverage benefits.
• Growth in operating income.

Other Earnings

• CESC
• Strides Shasun
• IDBI Bank
• Muthoot Finance
• Pidilite Industries
• Aditya Birla Nuvo
• Teamlease Services
• Karur Vysya Bank