Q2 Results Previews: Paytm, PB Fintech, Coal India, BPCL & Divis Labs
Dozens of companies will report their results for the September quarter today. Among them are One 97 Communications (Paytm), PB Fintech (Policybazaar), Coal India, BPCL & Divis Labs. Analyst estimates suggest that BPCL, Paytm and Policybazaar may report losses for the September quarter. Divis Labs reports flat Q2 earnings growth while Coal India is expected to report strong Q2 bottom line growth.
Coal India: Elara Securities said Coal India’s production rose to 299 million tonnes in the year to September FY23 against 249.8 million tonnes for the same period in FY22. Growth in total withdrawals during April-September FY23 was 8 percent, and the company backed up supplies to 332.2 million tonnes. The reduction for the corresponding period last year was 307.9 million tonnes, it noted.
Coal availability was a cause for concern in January-June, but the situation has stabilized after the company increased production to support power plants, it says. The brokerage expects Coal India to report an 80.1 percent YoY rise in profit to Rs 5,285.90 crore on a 13.4 percent YoY rise in sales to Rs 26,423 crore. Ebitda is seen to increase 75.5 percent YoY to Rs 6,937.70 crore.
BPCL: Edelweiss expects BPCL to report Ebitda loss of Rs 1,800 crore in Q2 due to weak marketing revenue, partially offset by modest refining growth. Marketing margins will remain subdued on higher crude oil prices and zero price increases during the quarter. They would be partially offset by 12 percent year-over-year growth, Edelweiss said. It expects refining activity to remain modest, given elevated GRMs offset by weak throughput on maintenance-related shutdowns across refineries. Net, it sees a Q2 loss of Rs 3,608.50 crore. The brokerage sees sales for BPCL rising 45.2 percent on the year to Rs 12,812.10 crore.
One 97 Communications (Paytm): YES Securities said steady disbursements of loans and new units should help Paytm with a healthy sequential growth in revenue. The brokerage house sees a growth of 15.3 per cent year on year in operating income. It forecast an improvement in payment processing fees (PPC) as a share of payment revenue to 62 percent from 64 percent in the June quarter.
“We arrive at a Total Expenses (ex PPC) growth of 10 percent QoQ, compared to 8 percent in Q1FY23, resulting in an EBitda margin of minus 30.8 percent, an improvement of 698 bps QoQ,” it said in the brokerage house. Overall, it sees a Q2 loss of Rs 602.30 crore. It sees revenue rise 78.2 percent to Rs 1,936 crore.
PB Fintech (Policybazaar): B&K Securities expects PB Fintech to report an adjusted loss of Rs 177.80 crore for the September quarter. It sees revenue for the quarter rise 93.2 percent to Rs 540.10 million. The operator of Policybazaar is likely to continue to grow sequentially and POSP loss is a key to watch, the brokerage said, as it sees Ebitda margin for the transaction company at minus 38.9 percent against minus 75.7 percent in the previous year.
Divis Labs: Edelweiss expects Divis to continue its growth streak with an expected top line growth of 16 percent. Gross margin and Ebitda margin are expected to remain at healthy levels of 65 percent and 39 percent, benefiting from backward integration of inputs, debottlenecking and currency tailwinds. Profit for the quarter stands at Rs 625.70 crore, up 2.3 percent year-on-year. Sales are estimated at Rs 2,305.50 crore, up 16 percent year-on-year.
Also Read: Q2 Results Previews: Paytm, PB Fintech, Coal India, BPCL & Divis Labs
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