Q2 earnings next week: TCS, Infosys, HCL Tech, Avenue Supermart and Delta Corp line-up

Several market giants are lining up to release their earnings this coming week, October 11-15. The rank includes IT giants Infosys, Tata Consultancy Services (TCS), and HCL Technologies. Apart from this, D-Mart’s parent company Avenue Supermarts, gaming company Delta Corporation, Plastiblends, Kesoram Industries and HDFC Life Insurance are also on the radar.

Analysts expect performance to be subdued in the coming quarter, with results from many industries expected to be modest. Although some sectors may exhibit respectable year-on-year growth, no significant jump is expected.

Also read: Earnings preview: Experts expect more misses than successes in Q2; How might this affect market sentiment?

Estimates suggest second-quarter earnings will be generally flat, with a mix of successes and shortcomings. Notably, the IT sector may show weak figures, while industries like BFSI (banking, financial services and insurance), auto and pharma are expected to show strong performance.

Find the full list and dates here:

October 11 (Monday): Delta Corporation, PlastiBlends India, Sammy Hotels, SignatureGlobal India, Tata Consultancy Services and Jagal Prepaid Ocean Services.

October 12: Anand Rathi Wealth, Angel One, HCL Technologies, Infosys, JTL Industries, Kesoram Industries, Sterling & Wilson Renewable Energy and Tata Metaliks.

October 13: Aditya Birla Money, HDFC Life Insurance Company and Tata Steel Long Products.

13 October: Avenue Supermarts

15 October: K Solves India

Also read: US earnings week ahead: JP Morgan, Citi ready for higher Fed’s longer-term outlook

expectations ahead

Sector-wise, there is not much change in the story of Q2 compared to recent quarters. technology companies Set to record slow revenue growth despite strong deal pipeline. Slower than expected growth or conversion of existing deals will lead to a sharp revival in revenues in the near future. Margin performance is also expected to be mixed.

IT companies with a large number of customers in the retail and telecom sectors may feel a greater impact on revenue growth as customers in developed markets grapple with higher inflation. Moreover, increasing caution among customers on small deals may now turn the story.

Also read: Q2 earnings week expected to see limited wave for IT

According to a report by Motilal Oswal Financial Services, Indian banking sector It is projected to experience significant growth year-on-year. Private banks and public sector banks (PSBs) are expected to achieve earnings growth of 25% and 20% respectively on an annual basis. However, there may be some tightness in the net interest margin (NIM).

The upcoming quarterly report in the banking sector is expected to focus on management comments regarding unsecured loan growth, margins, deposit traction, operating expense trends and fee income and outlook on treasury.

For private banks (except HDFC Bank), Motilal Oswal predicts strong earnings due to healthy business expansion and favorable credit costs. Nevertheless, challenges may arise due to margin compression and increase in operating expenses, impacting the overall growth trajectory. It maintains expectations of strong earnings growth for PSBs in Q2FY24, supported by controlled credit costs. However, margins may see a squeeze due to increase in funding costs.

Also read: Banking sector earnings preview: Motilal Oswal says earnings expected to grow well on year-on-year basis in Q2 despite NIM compression.

For consumer staples sector, Brokerage Nuvama Institutional Equities expects EBITDA to grow 12 per cent year-on-year and revenue 3 per cent in the second quarter. Volume growth will be moderate, with most businesses likely reporting low to mid-single-digit volume growth.

Rural recovery was hampered by August this year, which saw the lowest rainfall in more than 100 years and a deficit of 36%. Urban-focused businesses like Nestle have an advantage. The festive season is now fully underway in Q3FY24. The rise in prices will slow down further. The brokerage said that margins of most companies will increase year on year.

Also Read: Consumer Staples Q2 results preview: Slow rural recovery to impact revenue, volume growth; margin to expand

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