Angel One, Axis Bank, L&T Finance, Tata Communications Q2 Results Today — Earnings Estimates

Angel One Ltd., Axis Bank Ltd. and HDFC Life Insurance Co. are among the top names that will announce their earnings for the second quarter of the current financial year on Wednesday.

Angel One Ltd. is likely to clock a 17.8% rise in net profit at Rs 215 crore and a revenue of Rs 1,208.4 crore for the quarter ended September, according to a survey of analysts' estimates done by Bloomberg.

Axis Bank Ltd. will also be reporting its results for the quarter on Wednesday. The company is likely to report a net profit of Rs 19,669 crore and revenue of Rs 5,880 crore, according to estimates.

Here are the earnings estimates of major companies that are scheduled to announce their results on Wednesday:

• Profit seen 15.6% lower at Rs 5,838 crore versus Rs 6,917.57 crore

• Net interest income seen 1.9% lower at Rs 13,228.81 crore versus Rs 13,483.20 crore

• Provisions seen 14.4% higher at Rs 2,515.63 crore versus Rs 2,204.09 crore

• Gross NPA seen at 1.62% versus 1.57% (QoQ)

• NIM seen at 3.60% versus 3.8% (QoQ)

Profitability may stay under pressure as net interest margins moderate to 3.6% from 3.8% in the June quarter. Analysts said credit costs are likely to remain elevated even as slippages ease. Meanwhile the loan growth is expected to rise 9% on a yearly basis, according to Kotak Securities.

India's banks are expected to report softer earnings for the September quarter, as narrowing net interest margins and weak trading gains weigh on profitability. Analysts, however, see stability in core earnings and expect commentary to turn more constructive on growth and asset quality.

Loan growth remained strong across most lenders during the quarter, supported by higher deposit mobilisation and an improvement in loan-to-deposit ratios. However, analysts expect profitability to be hit by margin pressure following the Reserve Bank of India's earlier repo-rate cuts and reduced treasury income.