Earnings Today: IOC, Ramco Cement, Ujjivan Financial, Titan

State-run Indian Oil Corporation Ltd, South India-based Ramco Cement, non-banking financial company Ujjivan Financial Services and watch-to-jewellery maker Titan are among the companies reporting their financial results for the June-ended quarter.

Indian Oil Corp.'s net profit is expected to decline 16 percent to Rs 3,112 crore, according to consensus estimates tracked by Bloomberg. Revenue is seen 4 percent lower at Rs 96,403 crore. The earnings before interest, taxes, depreciation and amortization (EBITDA) may rise 41 percent year-on-year to Rs 6,226 crore, while the operating margin is seen at 6.5 percent, compared to 4.4 percent on a sequential basis.

• EBITDA cannot be compared to last quarter as Q4FY17 due to a one-off expense
• Other expenses to fall sharply QoQ due to entry tax provisions were taken in previous quarter
• This could also be the Rs 34,555-crore Paradip refinery's first full operational quarter

What To Watch

• Inventory losses in Q1FY18
• Utilisation of Paradip refinery
• Volume growth guidance

Ramco Cement's net profit is expected to be flat Rs 155 crore. Revenue is seen up 3 percent at Rs 1,003 crore. EBITDA is expected to decline by 10 percent to Rs 275 crore and the operating margin is expected to contract 27 percent from 31 percent.

• Volume growth seen at 5 percent YoY, driven by increasing east deliveries
• Realisations may remain flattish at 2.5 percent QoQ, however, expected to drop 5 percent YoY
• Higher cement prices in east is offset by weak cement prices in South
• EBITDA per tonne may decline 4.7 percent YoY but expected to grow 17.1 percent QoQ
• EBITDA per tonne to fall due to lower realisation and higher energy costs

What To Watch

• Volume Growth
• Fuel cost movement; Ramco is the only company not to have witnessed any fuel cost inflation last year

Ujjivan Financial is expected to post a net loss of Rs 7.1 crore, according to the analyst consensus estimates tracked by Bloomberg. Loan book is expected to rise by 3-4 percent.

What To Watch

• Improvement in collection efficiency in micro-finance book
• Loan book growth; mix between MFI and non-MFI book
• Opex movement on SFB (small finance bank) roll out

Other Earnings To Watch

What To Watch

• Jewellery sales to post over 30 percent growth
• Watch for contribution of new Golden Harvest Scheme to revenue
• May wedding season likely to spur growth for gems and diamond studded jewellery
• Margins could see impact of promotions
• Watch for commentary on impact of GST on making costs
• Muted growth seen for watches

What To Watch

• Revenue growth in the domestic market led by the industrial segment
• Revenue growth in industrial segment to be offset by weak exports
• Pricing pressure, increase in commodity prices and product mix will impact margins
• Higher other income may aid profits

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