Key Companies to Watch
Today, April 25th, marks a significant day in the financial world as several major companies unveil their fourth-quarter results for the financial year 2023-24 (Q4 FY24). Among the 38 companies reporting today, Nestle India, Tech Mahindra, Bajaj Finance, and Indusind Bank stand out as prominent names.
Following the release of Q4 numbers by major tech firms like TCS, Infosys, and Wipro, all eyes are now on Tech Mahindra. Analysts at Motilal Oswal Financial Services predict a modest 0.7% quarter-on-quarter (Q-o-Q) revenue growth in constant currency (CC), citing weakness in both the communications, media & entertainment and enterprise verticals. They project a total contract value (TCV) of around $500 million for the quarter. While margins are expected to improve by 140 basis points Q-o-Q due to cost-control efforts, subdued growth may put pressure on margins. Investors will be closely monitoring the outlook on margin and growth in the CME vertical.
Analysts at Nirmal Bang anticipate IndusInd Bank to maintain its momentum with a 5.1% Q-o-Q growth in its loan book. Key areas of interest include growth guidance considering prevailing high interest rates, NIM outlook amidst growing higher-cost term deposits, and asset quality assessments.
Motilal Oswal analysts foresee Bajaj Finance reporting a 35% year-on-year (Y-o-Y) and 7% Q-o-Q growth in Assets Under Management (AUM). Operating expenses are expected to remain stable, with a Cost-to-Income Ratio (CIR) around 34%. Margins are anticipated to contract by approximately 20 basis points Q-o-Q, with credit costs likely declining to around 1.65% Q-o-Q.
Kotak Institutional Equities analysts anticipate around 8% Y-o-Y growth in net revenues for Nestle India, with domestic revenues expected to grow at 8.5%. However, export revenues may experience a 5% decline. The analysis projects volume and pricing growth of 5.5% and 3% Y-o-Y, respectively. Gross margin is expected to expand by 370 basis points Y-o-Y to 57.5%, while Ebitda margin is estimated at 25.3%, with factors like inflation in cocoa affecting sequential declines.