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Business News/ Markets / Stock Markets/  Q2 earnings next week: TCS, Infosys, HCL Tech, Avenue Supermart & Delta Corp lined-up

Q2 earnings next week: TCS, Infosys, HCL Tech, Avenue Supermart & Delta Corp lined-up

A look at the line-up of companies expected to release their September quarter earnings this week from October 11-15.

Heavy-weights such as TCS, D-Mart parent Avenue Supermarts and Infosys are expected to release Q2 earnings this week. Photo: Hemant Mishra/Mint

The coming week, October 11-15, has a number of market heavy weights lined-up for their earnings release. Among the ranks are IT giants Infosys, Tata Consultancy Services (TCS), and HCL Technologies. Also on the radar are D-Mart parent Avenue Supermarts, gaming company Delta Corporation, Plastiblends, Kesoram Industries and HDFC Life Insurance.

In the upcoming quarter, analysts predict a subdued performance, with several industries presenting modest results. Although certain sectors may exhibit respectable year-on-year growth, any remarkable surges are not anticipated.

Also Read: Earnings preview: Experts expect more misses than hits in Q2; how can it impact market sentiment?

The projections suggest that the earnings in the second quarter will generally remain steady, characterized by a mix of successes and shortcomings. Notably, IT sectors might show weaker figures, while industries like BFSI (banking, financial services, and insurance), auto, and pharma are expected to report robust performances.

Find the full list and dates here:

October 11 (Monday): Delta Corporation, Plastiblends India, Samhi Hotels, SignatureGlobal India, Tata Consultancy Services, and Zaggle Prepaid Ocean Services.

October 12: Anand Rathi Wealth, Angel One, HCL Technologies, Infosys, JTL Industries, Kesoram Industries, Sterling and Wilson Renewable Energy, and Tata Metaliks.

October 13: Aditya Birla Money, HDFC Life Insurance Company, and Tata Steel Long Products.

October 13: Avenue Supermarts

October 15: KSolves India

Also Read: US earnings week ahead: JPMorgan, Citi prepare for Fed’s higher-for-longer approach

Expectations ahead

Sector-wise, the Q2 narrative has not changed much versus the recent quarters. Technology companies are poised to clock muted revenue growth despite a robust deal pipeline. Slower-than-anticipated ramp-up or conversions of existing deals would cap a sharp revival in revenues in the near future. The margin performance is also expected to be a mixed bag.

IT companies with a large number of clients in the retail and telecom sectors could feel more heat on revenue growth as clients in developed markets struggle with high inflation. Further, a twist in the tale could now come from increased caution among clients on smaller deals.

Also Read: Q2 earnings week expected to make limited waves for IT

According to a report by Motilal Oswal Financial Services, the Indian banking sector is projected to experience notable year-on-year growth. Private banks and Public Sector Banks (PSBs) are expected to achieve earnings growth of approximately 25% and 20% YoY, respectively. However, there might be some tightening in net interest margin (NIM).

The upcoming quarterly report in the banking sector is anticipated to focus on management comments regarding unsecured loan growth, margins, deposit traction, operating expenses trends, and the outlook on fee income and treasury.

For private banks (excluding HDFC Bank), Motilal Oswal predicts robust earnings driven by healthy business expansion and favorable credit costs. Nonetheless, challenges may arise due to margin compression and increased operating expenses, impacting the overall growth trajectory. It maintains an expectation of strong earnings growth for PSBs in Q2FY24, supported by controlled credit costs. However, margins might see a moderation due to the rise in funding costs.

Also Read: Banking sector earnings preview: Expect a decent YoY earning growth in Q2 despite NIM compression, says Motilal Oswal

For the consumer staples sector, brokerage Nuvama Institutional Equities expects Q2 EBITDA to expand by 12 percent YoY, and revenue by 3 percent. Volume growth will be moderate, with the majority of businesses probably reporting low- to mid-single-digit volume increase.

Rural recovery was hampered by August this year, which saw the lowest rainfall in more than 100 years and a 36% deficit. Urban-focused businesses, like Nestle, have an advantage. The festive season is now totally in Q3FY24. Growth in prices will slow down much more. Most companies' margins will rise year over year, the brokerage said.

Also Read: Consumer Staples Q2 Results Preview: Slow rural recovery to weigh on revenue, volume growth; margins to expand

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