Eye On Earnings: What to expect from United Spirits, Lupin, BHEL

With the earnings season nearing the end, more than 500 companies are scheduled to release the earnings for the quarter and half-year ended September on Wednesday.

The big ones to watch out for will be United Spirits, Lupin, Oil India, Mazagon Dock Shipbuilders, Bharat Heavy Electricals, Pidilite Industries, Tata Power Co, and Patanjali Foods.

The other names include Phoenix Mills, Nazara Technologies, Endurance Technologies, New India Assurance, Godrej Industries, Bata India, MCX, Raymond, Welspun Corp, Easy Trip Planners, Medplus Health, Restaurants Brands Asia, and Landmark Cars.

Earnings Expectations

The company is expected to have remained in the red during the September quarter, but the losses are likely to narrow sequentially. On a year-on-year basis, estimates show that the electrical equipment maker will post a loss against a profit in the same period last year.

Nuvama Institutional Equities has estimated a net loss of Rs 258 crore, compared to a loss of Rs 352 crore in the June quarter, and a profit of Rs 10 crore in the same period last year.

Revenue is expected to grow 10% YoY and 15% sequentially to Rs 5,746 crore.

“Given the viewpoint of energy security overriding energy transition, we believe thermal ordering is on the cusp of revival in the near-term as CEA plans 30-35 GW of new thermal ordering over FY24-28,” the brokerage said.

The drugmaker’s consolidated net profit is seen rising nearly threefold YoY, with a double-digit growth in both revenue and operating profit.

Brokerage Motilal Oswal Securities has estimated 17% growth in the revenue and whopping 76% growth in the operating profit.

Lupin’s US sales are seen growing a healthy 32% to $210 million, led by new product launches during the quarter. EU sales may grow by 18%, led by healthy traction in the base portfolio.

The brokerage will look for an update on limited competition approvals, expected over the next 12 months.

Pidilite Industries
The specialty chemicals maker is likely to report double-digit growth in the consolidated profit for the September quarter, led by strong operational performance despite moderate revenue growth.

Nuvama Equities expects overall domestic volumes to grow by 3.5% YoY. It expects gross margins to improve by a sharp 671 bps YoY with raw material costs cooling off, especially in VAM. Subsequently, EBITDA margins may improve by 389 bps YoY but decline by 109 bps sequentially due to a rise in prices of crude oil derivatives.

United Spirits
Kotak Institutional Equities expects the liquor maker to report a nearly 11% YoY growth in revenue, though this would be lesser than the 17% growth reported in the June quarter.

The Prestige & Above segment volumes are expected to grow 3%, while that of the Popular segment may decline by about 12%. As a result, the P&A segment is likely to see 11% growth in revenue while the Popular segment may report a 3% decline.

The brokerage expects a 20 bps sequential improvement in gross margins despite continued inflation in ENA and glass prices.

United Spirits’ guidance for full-year EBITDA margin in FY24 stands at 15%, and analysts will see if it maintains the same.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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