Earnings Today: Axis Bank’s Asset Quality Pain May Linger
Axis Bank, Bajaj Auto, Wipro and ACC among companies reporting results today.
Private sector lender Axis Bank Ltd., software services major Wipro Ltd., cement maker ACC Ltd., and Bajaj Auto Ltd. are among the companies which will report their July-September quarter earnings today.
Axis Bank’s profit may multiply more than four times due to a low base in the same quarter last year. Net interest income is seen rising 5.7 percent, according to Bloomberg consensus estimates. The lender is expected to have a net interest margin of around 3.6 percent weighed down by interest reversals and a cut in the marginal cost of lending rate. The savings rate cut is expected to partly aid the net interest margin.
What To Watch
- Quantum of corporate slippages from the watchlist and any revision in the size
- Quantum of loans rescheduled under 5:25, SDR and S4A mechanisms
- Progress on resolutions
- Stress in the farm segment
- Commentary on loan growth and margins
Bajaj Auto’s profit is likely to be hurt by rising commodity prices even after the motorcycle manufacturer’s sales rose after five quarters of decline. Revenue may increase in single digits in the quarter ended September on a 3.8 percent growth in volumes over the year-ago period, according to a consensus estimate of 19 analysts tracked by Bloomberg.
What To Watch
- Update on demand for new launches and outlook
- Export demand outlook
- Commentary on three-wheeler demand drivers in the domestic market
ACC is expected to nearly double its profit from the same quarter last year, according to Bloomberg consensus estimates. Revenue is seen rising 13 percent to Rs 2,790 crore. Operating income is expected to increase 19 percent, while margin may see a 60 basis points expansion. The cement maker is also expected to report higher sales volumes.
What To Watch
- Volume growth after new plant additions in east India
- Realisations expected to see a 3 percent growth
- Fuel cost due to the lagged impact of higher petcoke prices in the previous quarter
Wipro may see a flattish quarter, with profit expected to grow 0.1 percent sequentially. However, the consensus estimate of analysts tracked by Bloomberg indicate the company may beat its revenue forecast for the quarter. Operating profit margin is seen contracting 20 basis points to 15.8 percent. Intellectual property deals during the quarter may push revenue higher, while cross currency tailwinds may aid margins.
What To Watch
- Positioning in digital services, progress on large deals
- Progress on integration of acquisitions
- Outlook on healthcare vertical which has been volatile
Other Results Today
- AB Money
- Atul
- Bajaj Holdings
- Blue Dart
- CRISIL
- ICICI Lombard
- Nucleus Software
- Prakash Industries
- RS Software
- Som Distilleries
- Tata Sponge