ITC, Maruti Suzuki and Tata Motors
The cigarette-hotel-to-FMCG major is expected to report 25-35 percent year-on-year growth in September quarter profit due to cut in corporate tax rate while there could be 6-8 percent increase in revenue YoY with cigarette volume growth around 2-3 percent against 5.5 percent in year-ago period. Other business segments could report steady growth.
"We model 2.5 percent YoY increase in cigarette volumes and 3.5 percent increase in realization (portfolio-level). We forecast 8 percent YoY growth in cigarette EBIT," said Kotak which expects 6.5 percent increase in revenue, 34 percent in profit, 8.7 percent in EBITDA and 80bps in margin YoY.
Meanwhile, overall auto companies are likely to report weak set of earnings for the quarter due to lower sales and increase in discount to boost sales.
Tata Motors is expected to continue to report loss in Q2 after 45 percent decline in standalone sales volumes and flat JLR sales YoY, but there could be support from cost-reduction efforts and currency benefits.
Maruti Suzuki is likely to report 50-60 percent decline in Q2 profit with more than 24 percent fall in revenues YoY on the back of 30 percent drop in volumes, but net realisation may increase 5-8 percent YoY.