Loan growth may take a hit during the quarter, analysts feel.
ITC will post Q1 earnings later today, cigarette volumes are expected to decline 2 percent. In an interview to CNBC-TV18, Sanjay Manyal, Research Analyst at ICICI Direct shared his views on the stock.
Revenue growth is expected to be led by US business. Within US, street is factoring in a better performance from cholesterol drug Zetia generic that was launched in December with exclusivity; ended in June.
Operating profit during the quarter may drop 20% to Rs 211.3 crore and margin may contract by 560 basis points to 21.2 percent year-on-year.
ICICI Bank will be reporting its Q1 FY18 earnings this evening. In an interview to CNBC-TV18, Kunal Shah of Edelweiss Financial Services spoke about his expectations.
Net interest income may grow 19 percent to Rs 659 crore in June quarter from Rs 553.6 crore in corresponding quarter of previous fiscal, according to average of estimates of analysts polled by CNBC-TV18.
The battery manufacturer’s revenue is likely to rise by just 7 percent at Rs 2,161 crore against Rs 2,011 crore in the corresponding quarter last year.
Revenue is seen rising 4.6 percent year-on-year to Rs 3,383 crore in June quarter, according to average of estimates of analysts polled by CNBC-TV18.
Analysts expect degrowth in profitability but growth in net interest income for the quarter.
Profit during the quarter is seen rising 12 percent to Rs 1,669 crore compared with Rs 1,486 crore in same quarter last year, driven by revenue and operational growth.
According to average of estimates of analysts polled by CNBC-TV18, revenue is seen falling 0.94 percent sequentially to Rs 8,050 crore in Q1 but the pace of degrowth is likely to moderate after 6-7 percent fall seen in Q3 and Q4FY17.
Profit during the quarter is seen falling 12 percent sequentially to Rs 2,043 crore compared with Rs 2,325 crore in previous quarter.
Cigarette-hotel-to-FMCG major ITC is all set to announce its earnings for the quarter ended June 2017 on July 27.
Operating profit is likely to increase 4 percent year-on-year to Rs 126 crore but margin may contract 200 basis points to 19 percent in June quarter, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit during the quarter is likely to rise 5.1 percent to Rs 469 crore and margin may expand 10 basis points to 19.8 percent compared with year-ago quarter, impacted by higher milk prices.
Dollar revenue is expected to increase moderately to USD 227 million in June quarter from USD 226.4 million in previous quarter due to HP channel, according to average of estimates of analysts polled by CNBC-TV18.
Net interest income, the difference between interest earned and interest expended, may grow 24.4 percent to Rs 852.3 crore from Rs 685 crore year-on-year.
Consolidated profit is expected to increase sharply by 36.3 percent year-on-year to Rs 282.7 crore and net interest income is seen rising 21.7 percent to Rs 1,023.5 crore, according to average of estimates of analysts polled by CNBC-TV18.
Net interest income is seen rising 10.2 percent year-on-year to Rs 218.2 crore in the quarter ended June 2017, according to average of estimates of analysts polled by CNBC-TV18.
Loan growth is expected to be at 25-30 percent in Q1FY18 against 34.7 percent in Q4FY17.
Analysts said if net interest margin comes above 3.75 percent (4.1 percent in Q4FY17), AUM growth above 15 percent (16.1 percent) and gross non-performing assets below 0.9 percent (0.79 percent) then that will be positive.
India business' average revenue per user is seen declining 3.5 percent QoQ to Rs 152.5 but volume growth may be 8.3 percent at 413 billion minutes and minutes of usage may increase 5.5 percent to 497.
Operating profit is expected to jump 55 percent to Rs 5,320 crore and margin may expand 530 basis points to 29.1 percent compared with year-ago quarter.
Key things to watch out for would be domestic volume growth that is expected to be 5-6 percent for the quarter, which would be upside risk for the stock.
Key things to watch out for would be asset quality movement. At the end of March 2017, total amount of loans under watchlist was Rs 11,232 crore (which accounts for 3 percent of total loan book).