Bajaj Finance, Power Grid, Adani Green, Zomato, Paytm& Varun Beverages: Check Q2 results preview #CashNews.co

A number of buzzing companies across all sectors including Bajaj Finance, Power Grid Corporation, Varun Beverages, Zomato, One97 Communications and Adani Green Energy are scheduled to announce their earnings for the September 2024 quarter (Q2FY25). Heres’ what various brokerage firms expect from these companies in the second quarter of the current fiscal:

Bajaj Finance Ltd
Axis Securities pencils Bajaj Housing Finance’s net interest income to come in at Rs 8,870 crore rising 23.2 per cent YoY, while PPOP is seen at Rs 7,299 crore, up 25 per cent YoY. Net profit is likely to come in at Rs 5,944 crore, surging 52 per cent QoQ and 67.4 per cent YoY, said the brokerage.

AUM Growth has remained healthy at 6 per cent QoQ but margins compression is likely to be slower despite the increase in CoF and the C-I Ratio to remain steady, said Axis Securities. “Credit costs are to be contained within management guidance and asset quality is expected to remain stable QoQ, while we expect earnings to be supported by gains from stake sale.”

Anand Rathi pegs its net interest to come in at 10,504 crore, up 24 per cent YoY, while PPOP to be at Rs 7,341.5 crore, surging 25.8 per cent on a yearly basis. PAT is seen at Rs 4,510 crore, up 17 per cent YoY.

Bajaj Finance reported 5.6 per cent QoQ growth in loan book, driving 29 per cent YoY growth in AUM, said Kotak Institutional Equities. “We bake in 10 bps qoq compression in spreads, driven largely by a rise in cost of funds,” it said.

Power Grid Corporation of India Ltd
JM Financial pegs revenue at Rs 44,083.7 crore, falling 2 per cent YoY and 9 per cent QoQ due to lower generation. Ebitda is seen at Rs 12,681.1 crore, flat on a yearly basis but dropped 10 per cent sequentially and Ebitda margin is seen to come in flat at 28.8 per cent on the back of stable fuel cost. PAT is seen to come in at Rs 4,892.8 crore, down 4 per cent YoY and 11 per cent QoQ.

Motilal Oswal builds in standalone revenue and EBITDA growth of 7 per cent YoY in 2QFY25 amid a rise in capex and standalone capitalization of Rs 3,600 crore from 3QFY24-1QFY25, besides continued strong contributions from the consultancy segment.

“However, reported PAT is likely to be lower by 5 per cent YoY due to a lower reported tax rate in 2QFY24 against a normalized tax rate, which we assume for 2QFY25. Adjusted PAT is anticipated to rise by 26 per cent YoY in 2QFY25 as 2QFY24 included Rs 500 crore relating to regulatory deferral income,” it said.

Varun Beverages Ltd
Motilal Oswal expects total sales volume to grow 23 per cent YoY in Q2FY25. “We expect Ebutda margin to sustain at 22.8 per cent in the given quarter with integration and ramp up of beverage players will be in focus. Scale-up in international geographies and further capex update are the key monitorables,” it said with a buy rating and a target price of Rs 730.

Nuvama anticipates consolidated revenue and Ebitda to grow 19 per cent and 20 per cent YoY due to Sting business now reaching its maturity. “We expect volume growth of 5 per cent YoY on a normal base and high rainfall, which is less conducive to cold beverages and reckon consolidated volumes shall grow 18 per cent YoY due to acquisition,” it said.

Domestic margins shall improve YoY but international business margins to be similar YoY. We anticipate overall gross margin to decline 121 bps YoY to 45.9 per cent while Ebitda margins to expand 16 bps YoY to 23 per cent due to lower staff cost and other expenses, Nuvama said.

Zomato Ltd
Elara Capital expects Zomato to report a revenue of Rs 4,809.3 crore, up 69 per cent YoY and 14 per cent QoQ. Ebita is seen at Rs 211.5 crore, with Ebitda margins of 4.4 per cent for the quarter. The company may clock a net profit of Rs 298.9 crore with 18 per cent sequentially and an eight fold jump on yearly comparison. It has a ‘buy’ rating on Zomato.

Elara expects Zomato to do well as traction in food delivery and quick commerce strengthens. The food delivery segment may continue to see good execution with healthy double-digit growth GOV may continue to be user-backed, led by mid single-digit growth in order frequency and AOV, it said.

“We estimate 8.7 per cent QoQ/60.5 per cent YoY revenue growth for consolidated business in Q2FY25. Adjusted revenue of Food delivery business to grow by 2.8 per cent QoQ/19.7 per cent YoY, driven by volume growth. We expect consolidated Ebitda margin to contract by 30bps QoQ,” said Nuvama.

One 97 Communications Ltd (Paytm)
Emkay Global expects Paytm to clock a revenue of Rs 1,646.5 crore, falling 35 per cent YoY but up 10 per cent QoQ. The fintech player may report an ebitda loss of Rs 276 crore, while net profit is seen at Rs 667.6 core for the quarter due to one-off gains from sale of the entertainment business.

Paytm is likely to report ebitda before ESOP loss due to continued softness in the payments/lending business, partly offset by cost rationalization. However, a one-off gain from the sale of entertainment business could turn Paytm into net profit positive, said Emkay which has an ‘add’ rating on the stock with a target price of Rs 750.

We assume 2 per cent QoQ de-growth in payments services to consumers, 10 per cent QoQ growth in payments services to merchants and 10 per cent QoQ growth in financial services and others and arrive at an overall growth in Revenue from operations of 8 per cent QoQ, said YES Securities.

“We forecast payment processing charges (PPC) as a proportion of payments revenue to be at 57 per cent. We arrive at a total expenses (ex PPC) de-growth of -4 per cent QoQ, resulting in an Ebitda margin of -39.1 per cent,” it said.

Adani Green Energy Ltd
AGEL reported largely in-line operating performance in Q2FY25 with operational RE capacity of 11.2GW at the end of September 2024. We reiterate our positive stance on AGEL, led by RE capacity CAGR of 30 per cent during FY24-30E, combined with improving CUF, rising share of merchant-C&I volumes, and concentrated development, said Emkay Global.

“The announcements pertaining to JV with Total Energies for 1.15GW RE capacity at Khavda led by the $444 million investment, MSEDCL’s award for supply of 5GW solar power at an attractive tariff of Rs2.7/kWh, and the C&I opportunity with Google, re-affirm our overall outlook on the stock,” it said with a ‘buy’ rating and a target price of Rs 2,550.