Earnings Today: HDFC’s January-March Profit May Take A Hit Due To Base Effect

Signage for HDFC displayed in Mumbai (Photographer: Adeel Halim/Bloomberg)

Written by
BQ Desk
Written by

BQ Desk

Twitter
WhatsApp
Facebook
Reddit
Email

India's largest mortgage lender HDFC Ltd, two real estate companies Oberoi Realty Ltd. and Godrej Properties Ltd. and consumer goods maker Emami Ltd. are among those that will report their January-March quarter earnings on Thursday.

Housing Development Finance Corporation may see its bottomline decline more than 20 percent on account of a higher base, according to Bloomberg consensus estimates. It recorded a one-time gain of Rs 1,513.40 crore in the same quarter last year by selling stake in its life insurance business. The mortgage lender's asset quality is likely to be stable.

What To Watch

Loan growth and uptick in corporate loans.
Impact of demonetisation on real estate demand
Asset quality of the corporate loan book
Movement in spreads and margins

L&T Finance Holdings Ltd., the financial services arm of engineering and construction group Larsen and Toubro Ltd., is expected to see a 17 percent increase in its bottomline, according to Bloomberg consensus estimates.

Credit costs will likely remain high and in line with the company's guidance as it voluntarily provides more to strengthen the balance sheet.

What To Watch

Improvement in core performance
Growth in housing and rural businesses
Performance of the microfinance business

Emami's fourth quarter net profit may see a 42 percent rise on a year-on-year basis but revenue is expected to see a decline in the same period, according to the consensus estimates of analysts tracked by Bloomberg. Margins are likely to remain stable.

What To Watch

Kesh King sales and contribution to operational gains
Impact of price hikes in Navratna and talcum powder brands
Competitive intensity in the hair oil segment
Product mix for the summer and outlook for the first quarter of financial year 2017-18

Mumbai-based Oberoi Realty is expected to report healthy January-March quarter earnings, shrugging off the impact of demonetisation that hit most real estate companies in the quarter gone by.

The bottomline may see a 36 percent jump while the topline is likely to increase 18 percent as compared to the same quarter last year, according to Bloomberg consensus estimates.

What To Watch

Improvement in sales volumes post demonetisation
Fresh bookings in Worli residential project and leasing trends of Goregaon commercial project
Management commentary on implications of the Real Estate Regulation Act (RERA)

Godrej Properties too is likely to see a positive January-March quarter as the bottomline is expected to surge four-fold to Rs 73 crore on a year-on-year basis, Bloomberg consensus estimates show. Revenue too may see an uptick.