Q2 results today: Britannia, Tata Steel, Hero among companies that will post Q2 earnings today

Q2 results today: The biggest focus for the market investors at present is the earnings performance of the Indian companies. We are in the thick of the earnings season and today around 90 companies will announce their numbers for the quarter ended September 30, 2023. Among the 90, the prominent ones are - Ambuja Cements, Britannia Industries, GMDC, Godrej Consumer Products, Tata Steel, IGL, JK Tyre, LIC Housing Finance, REC, Relaxo, Sun Pharmaceutical Industries, Hero MotoCorp, Thomas Cook (India), among others.

Tata Steel Q2 results

Tata Steel Q2 earnings are likely to be weak with a single digit drop in revenue on a year-on-year basis. The company’s weak performance during the quarter is expected on the back of Tata Steel Europe which is estimated to report EBITDA losses due to poor volumes and realization.

As per average analysts’ estimates, Tata Steel’s consolidated revenue in the quarter ended September 2023 is expected to fall 6% to ₹56,285 crore from ₹59,877.5 crore in the year-ago quarter.

Read here: Tata Steel Q2 Results Preview: Net profit may fall sharply dragged by European operations; revenue seen down 6% YoY

Brokerage firm Motilal Oswal Financial Services expects Tata Steel’s Q2 net profit to decline sharply by 61.1% to ₹589 crore from ₹1,514.4 crore in the corresponding quarter of last fiscal. It expects the company’s revenue to fall 5.7% YoY to ₹56,464 crore.

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Sun Pharma Q2 Results

Analysts at Phillip Capital expect Sun Pharma’s margins to correct on account of lower R&D base and remediation charges. The resultant EBITDA may falls by 4% year-on-year , they said.

MOFSL also expects EBITDA to fall from ₹3,170 crore in the June quarter to around ₹3,030 crore in the September quarter. On a year-on-year basis, however, the EBITDA will be comparable to ₹3,050 crore seen in the year-ago quarter.

Sun Pharma’s net profit as per Phillip Capital estimates is likely to decline 3% year-on-year. MOFSL on the other hand estimates Sun Pharma’s net profit to decline 4.8% YoY.

Read here: Sun Pharma Q2 Results Preview: revenues to be supported by the healthy US and domestic sales

Hero MotoCorp Q2 Results

Kotak Institutional Equities expects Hero MotoCorp to see Q2FY24 net profit rising 43.5% to ₹1,027.5 crore from ₹716.1 crore, YoY. Revenues are estimated to increase by 4% YoY led by 5% YoY increase in average selling price (ASP) due to price increases and 1% YoY decline in volumes due to the continued weakness in entry-level motorcycle segment demand. 

“We expect EBITDA margin to improve by 50 bps QoQ, mainly driven by marginal increase in gross margins due to raw material correction, price increases taken by the company, partly offset by an increase in losses in the EV segment due to price cuts and higher advertisement spends on account of newer launches,” Kotak Institutional Equities said.

Britannia Industries

Britannia Industries’ Q2FY24 revenue, EBITDA and net profit are expected to increase by 1%, 5.3% and 3.2%, respectively, on a year-on-year basis, according to analysts. 

“In tense of stable market share and the coming back of regional players, we expect price cuts of ~2% in order to drive volumes, particularly in rural markets. We expect Gross margins to expand by 346 bps YoY on account of deflationary raw material prices, especially palm oil. However, EBITDA margins are expected to expand by only 70 bps YoY and decline by 23 bps QoQ on account of increase in A&P spends,” Nuvama Institutional Equities said.

All in all, the brokerage firm expects market share for Britannia to be stable and margins to be under pressure going ahead on account of higher base, increase in wheat and sugar prices and intense competition especially from local players.

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