Q4 results today: HUL, Axis Bank, Tech Mahindra among 38 companies to announce earnings on Thursday

Synopsis

Thursday's earnings announcements include Tech Mahindra, HUL, and Axis Bank. Tech Mahindra anticipates strong profit growth but muted revenue. HUL expects subdued demand and flat volume growth. Axis Bank projects mid-single-digit net interest income growth with potentially muted profitability due to loan growth and stable margins.

The fourth quarter earnings season is picking up momentum and on Thursday as many as 38 companies will announce their quarterly numbers. Key earnings to watch out include from HUL, Axis Bank, Nestle, SBI Life, Tech Mahindra, Persistent, Mphasis and LTTS.

Tech Mahindra Q4 expectations

For Tech Mahindra, fourth quarter profit growth will be strong but the sequential revenue in constant currency terms will be quite muted, according to estimates from various brokerages. For instance, Nuvama is pricing in a -0.7% QoQ CC and -1.5% QoQ in USD growth.

The company will reap the benefit of reversal of furloughs and Comviva seasonality, but they will be offset by headwinds in hi-tech and few low-margin deal closures.

Net profit in the January-March period is likely to jump 65% year-on-year (YoY), according to an average estimate of six brokerages. Revenue, meanwhile, is seen rising 4% YoY.

HUL Q4 expectations

It is the same old story of subdued demand and flattish volume growth for Hindustan Unilever Ltd (HUL), but packaged in a new quarter of January-March 2024. The demand slowdown is particularly stark in urban areas even as the company faces increased competition.

Apart from the demand and competition, the growth has been impacted by multiple factors including adverse mix dynamics and input cost inflation.

Revenue from operations in the fourth quarter is likely to rise by a marginal 2% year-on-year (YoY), according to an average estimate of six brokerages. Volumes for the reporting period are seen flat, a trend mirrored in the previous quarters.

Net profit for the quarter may rise 3% YoY, the estimates revealed. EBITDA growth is estimated at 2% YoY in Q4FY25.

Axis Bank Q4 expectations

Private lender Axis Bank is likely to report mid single-digit growth in its net interest income during the fourth quarter even as profitability is likely to be muted.

Net interest income during the January-March 2024 period is seen rising 5% year-on-year (YoY), according to an average estimate of five brokerages. Meanwhile, the PAT estimates ranged between 7% decline to 1% growth. The average of five estimates for profit is a fall of 3% YoY.

Analysts are building in loan growth of 8% YoY (3% QoQ), which will in turn impact the fee income. Margins are likely to remain flat in the fourth quarter, while asset quality is likely to be stable.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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