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Sales are expected to increase by 4.1 percent Q-o-Q (up 12.1 percent Y-o-Y) to Rs 10578.9 crore, according to Motilal Oswal
SP Tulsian of sptulsian.com in an interview to CNBC-TV18 spoke about the fundamentals of stocks and sectors like cement, sugar, Reliance Industries and quarterly earnings of IndiaBulls Real Estate, M&M Financials.
The company has identified high-pressure states and created separate customer buckets to improve its stressed asset situation, says Ramesh Iyer, MD, M&M Financial Services.
Gross non-performing loans (GNPL) are expected to remain elevated as the company migrated to 135-day NPA recognition against 150-day earlier which resulted in GNPL spiking to 9.4 percent in Q2FY16 against 8 percent Q-o-Q.
Ramesh Iyer, MD of M&M Financial says that sales have been better during the festive season than in first two quarters of FY16.
Ramesh Iyer, MD, Mahindra & Mahindra Financial Services, says the company has zero restructured loans.
The house has a buy rating on M&M Financial with price target of Rs 300 with a medium to long-term view, said Nischint Chawathe, Senior Analyst at Kotak Institutional Equities.
Key factor to watch out for would be gross non-performing loans (GNPL). Significant worsening in GNPL could lead to spike in provisions and interest reversals, feel analysts, saying rural slowdown, unseasonal rains and poor monsoon may continue to weigh on GNPL.
In an interview with CNBC-TV18, Ramesh Iyer, Managing Director of M&M Financial Services said recovery in growth and NPAs is expected in festival season from September onwards.
Net-interest income is expected to fall by 17 percent quarter-on-quarter (up 7.8 percent year-on-year) to Rs 733.3 crore, according to Emkay Global Financial Services.
Standalone profit is seen going up to Rs 172 crore in the quarter ended June from Rs 154.9 crore in the same quarter last year and net interest income may climb to Rs 756 crore from Rs 680.2 crore during the same period. Net interest income is the difference between interest earned and interest expended.
Ramesh Iyer, MD, M&M Financial Services in an interview to CNBC-TV18 said better recovery management resulted in lower non performing loans (NPLs).
Nischint Chawathe of Kotak Institutional Equities expects the housing finance companies from the NBFC space to out perform others.
NBFC firm Mahindra & Mahindra Financial Services, which will announce quarterly earnings on April 23, is expected to continue seeing double digit loss in profit due to higher provisions. According to a CNBC-TV18 poll, profit may fall 16 percent year-on-year to Rs 261 crore in Q4 on standalone basis.
Iyer said the company was trying to ensure that credit losses did not exceed 2 percent
According to independent market expert Ambareesh Baliga, there is a further possibility of a correction in HUL. The business sentiment is high and the macros are improving but unless government starts spending, it will take some time for the investment cycle to really pick up.
Net interest income may rise 9 percent to Rs 738 crore in the quarter ended September 2014 from Rs 678 crore in corresponding quarter of last fiscal.
Analysis M&M Financial results
Mahindra and Mahindra Financial Services reported poor set of earnings in the quarter ended December 2013. Standalone profit after tax of the non-banking finance company fell 18 percent year-on-year to Rs 164 crore dented by higher provisions indicating stress on asset quality.
Ramesh Iyer, MD, M&M Financial, said the firm‘s witnessed a “significant deterioration†in the southern market where non-performing loans picked up sharply.
Mahindra and Mahindra (M&M) Financial Services was the other non-banking financial company (NBFC) that reported disappointing Q3 earnings.
Net interest income may increase 27 percent to Rs 712 crore in the quarter ended December 2013 compared to Rs 561.2 crore in a year ago period.
According to Prabhudas Lilladher, Mahindra & Mahindra Financial Services to report a 16.9 percent growth quarter-on-quarter (growth of 19.1 percent year-on-year) in net profit at Rs 223.5 crore.
M&M Financial has maintained its growth at assets under management (AUM) more than 30 percent for the past 10 quarters. Analysts expect AUM growth of 27-28 percent in September quarter due to festive season momentum in the cars segment.
Mahindra Finance, the non-banking finance company (NBFC), will announce its first quarter (April-June) earnings on Thursday. Its net profit is expected to grow by 27 percent year-on-year to Rs 205 crore. Net interest income may increase 32 percent y-o-y to Rs 646 crore, according to an average poll estimate by CNBC TV18.