Earnings Today: ONGC May Post Best Sales Growth In Three Years
ONGC and Bharat Financial Inclusion among companies reporting Q2FY18 earnings.
Oil and Natural Gas Corporation Ltd. and Bharat Financial Inclusion are among companies reporting their July-September quarter earnings today.
India’s largest oil explorer ONGC is expected to report its highest ever revenue growth in ten quarters aided by higher crude prices. The topline may rise 11 percent sequentially, according to the Bloomberg consensus estimate. The operating margin may expand 330 basis points to 49.3 percent. Oil and gas production too is expected to rise 2 percent.
During the quarter, the Cabinet approved selling its entire stake in refinery Hindustan Petroleum Corporation Ltd. to ONGC, creating a state-run behemoth that can take on global rivals. A merger would see ONGC becoming the third largest oil refiner in the country after Indian Oil Corporation Ltd. and Reliance Industries Ltd.
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What To Watch
- Management commentary on gas production and benefits of price hikes
- Management commentary on HPCL deal
Bharat Financial Inclusion is expected to see a 20 percent decline in profit despite likely growth in assets under management and net income. During the quarter, IndusInd Bank had struck a deal to acquire Bharat Financial effective from January. The microfinance company’s net interest margin is likely to benefit from lower funding costs. Asset quality too is expected to be stable.
What To Watch
- Timeline of merger with IndusInd Bank
- Management commentary on growth trends and demand for loans
- Management commentary on asset quality performance in key states like UP, Maharashtra and Karnataka
- Movement in borrowing costs and margins
