Packages of Hindustan Unilever Ltd.’s Surf Excel detergent displayed at a store (Photographer: Kuni Takahashi/Bloomberg)

Earnings Today: Hindustan Unilever’s Input Costs May Weigh On Its Margins

Consumer goods major Hindustan Unilever Ltd., steelmaker JSW Steel Ltd. and financial services firm Bajaj Finance Ltd. are among the companies that report their January-March quarter earnings on Wednesday.

Hindustan Unilever is expected to see its profit decline for the first time in five quarters. Revenue may grow 4.3 percent, while earnings before interest, taxes, depreciation and amortisation margin may expand to 19.4 percent, according to Bloomberg consensus estimates. Demand recovery in rural areas since demonetisation will be one key factor to look out for.

What To Watch

  • Higher input costs which are likely to impact gross margins.
  • Impact of advertising spends on operational income.
  • Volume growth.

JSW Steel is expected to report a three-fold rise in its profit on the back of record output. EBITDA may increase 61 percent to Rs 3,102 crore while revenue is seen growing 42 percent, according to Bloomberg consensus estimates. With the government's anti-dumping policy in place, the outlook for production in the next financial year will be key to watch.

What To Watch

  • Impact of higher coking coal prices.
  • Volume ramp-up from Vijaynagar plant.
  • Steel realisations in fourth quarter and domestic steel demand growth.

Also Read: Tata Steel Posts Surprise Loss On U.K. Pension Settlement

Bajaj Finance is expected to post a 26 percent growth in net interest income, the core income lenders earn by giving loans. Profit may grow 42 percent, according to Bloomberg consensus estimates.

Management commentary on business momentum after the demonetisation impact will be closely watched.

What To Watch

  • Guidance on margins due to changing product mix.
  • Asset quality trend in property backed loans and two-wheeler lending businesses.
  • Performance of rural lending business, lifestyle financing and e-commerce financing.

Other Key Earnings

  • Allahabad Bank
  • Bajaj Finserv
  • Edelweiss Financial Services
  • Hindustan Copper
  • Indian Overseas Bank
  • JK Lakshmi Cement
  • MRPL
  • United Breweries
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