Latest news with #KotakEquities
Economic Times
4 days ago
- Business
- Economic Times
Grasim Industries Q1 Preview: Net loss may widen to Rs 309 crore amid paints, VSF pressure. 5 things to watch out for
Grasim Industries is expected to report a widened net loss in Q1 despite robust revenue growth of over 30% year-on-year. Brokerages anticipate weak profitability due to continued losses in new-age verticals like paints and B2B e-commerce, as well as soft margins in its core viscose fibre business. While the chemical segment shows marginal improvement, analysts remain cautious about margin pressure and cost headwinds. ADVERTISEMENT The estimates of Kotak Institutional Equities, ICICI Securities and Antique Stock Broking have been taken into consideration. Here's what they recommended: – Kotak Equities expects standalone net loss to widen to Rs 309 crore versus Rs 52 crore loss in the year ago period, citing weak VSF performance and ongoing losses in the paints division.– Antique Stock Broking pegs the net loss at Rs 178 crore.– ICICI Securities forecasts a net loss of Rs 254 crore, driven by margin pressures and expansion-related costs. ADVERTISEMENT Brokerages said that bottom-line pressure is likely to persist, primarily due to sustained losses in new businesses and subdued operating leverage in core verticals. Kotak highlights a drag from the VSF segment, while ICICI points to B2B and paints-related expenses as margin eroders. – Kotak Equities: Rs 9,195 crore (+33% YoY, +3% QoQ) ADVERTISEMENT – Antique Stock Broking: Rs 9,111 crore (+32.2% YoY, +2.1% QoQ)– ICICI Securities: Rs 8,965 crore (+30% YoY, +0.4% QoQ) ADVERTISEMENT Revenue growth is expected to remain robust across the board, supported by solid traction in the chemicals segment and healthy top-line growth in the building materials division. Kotak highlights a 0.5% QoQ rise in chemical volumes, while ICICI sees the paints and B2B e-commerce segment contributing Rs 2,200 crore, though flattish Before Interest, Taxes, Depreciation and Amortisation (EBITDA) growth remains weak on a YoY basis due to lower profitability in VSF and persistent startup costs in new ventures. However, sequential improvements are visible across estimates. Kotak attributes the QoQ gain to cost optimization and slight demand uptick in chemicals. ADVERTISEMENT – Kotak Equities: Rs 245 crore (-24.7% YoY, +11% QoQ)– Antique Stock Broking: Rs 270 crore (-17% YoY, +22.4% QoQ)– ICICI Securities: Rs 255 crore (-21.6% YoY, +15.5% QoQ)"We estimate standalone EBITDA of Rs 2.4 bn including (1) VSF EBITDA of Rs 2.6 bn (-35% yoy, -10.4% QoQ) on lower prices, (2) chemicals EBITDA of Rs 3.1 bn (+4.3% YoY, +0.6% QoQ) on gradual recovery in domestic demand and marginally lower costs, and (3) sustained level of losses in paints division with robust revenue growth," Kotak said in a preview note.– Kotak Equities: 2.7%, down 206 bps YoY, up 19 bps QoQ– ICICI Securities: 2.8%, down 187 bps YoY, up 37 bps QoQ"For Grasim Industries, EBITDA margins are likely to inch up 40bps QoQ (though on a YoY basis, it may still be a drop of 190bps owing to estimated losses for new businesses such as paints and b2b e-commerce segment). We estimate the revenue for the building materials segment (i.e. paints and b2b e-commerce, combined) at Rs 22bn being flat QoQ," ICICI Securities said in a preview the key monitorables are performance and margin outlook for paints and B2B e-commerce, VSF pricing trend and volume recovery, demand momentum in chemicals and EBITDA contribution from new verticals (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
4 days ago
- Business
- Time of India
Grasim Industries Q1 Preview: Net loss may widen to Rs 309 crore amid paints, VSF pressure. 5 things to watch out for
Grasim Industries is expected to report a widened net loss in Q1 despite robust revenue growth of over 30% year-on-year. Brokerages anticipate weak profitability due to continued losses in new-age verticals like paints and B2B e-commerce, as well as soft margins in its core viscose fibre business. While the chemical segment shows marginal improvement, analysts remain cautious about margin pressure and cost headwinds. The estimates of Kotak Institutional Equities, ICICI Securities and Antique Stock Broking have been taken into consideration. Here's what they recommended: PAT – Kotak Equities expects standalone net loss to widen to Rs 309 crore versus Rs 52 crore loss in the year ago period, citing weak VSF performance and ongoing losses in the paints division. – Antique Stock Broking pegs the net loss at Rs 178 crore. – ICICI Securities forecasts a net loss of Rs 254 crore, driven by margin pressures and expansion-related costs. Brokerages said that bottom-line pressure is likely to persist, primarily due to sustained losses in new businesses and subdued operating leverage in core verticals. Kotak highlights a drag from the VSF segment, while ICICI points to B2B and paints-related expenses as margin eroders. Revenue – Kotak Equities: Rs 9,195 crore (+33% YoY, +3% QoQ) – Antique Stock Broking: Rs 9,111 crore (+32.2% YoY, +2.1% QoQ) – ICICI Securities: Rs 8,965 crore (+30% YoY, +0.4% QoQ) Revenue growth is expected to remain robust across the board, supported by solid traction in the chemicals segment and healthy top-line growth in the building materials division. Kotak highlights a 0.5% QoQ rise in chemical volumes, while ICICI sees the paints and B2B e-commerce segment contributing Rs 2,200 crore, though flattish sequentially. EBITDA Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) growth remains weak on a YoY basis due to lower profitability in VSF and persistent startup costs in new ventures. However, sequential improvements are visible across estimates. Kotak attributes the QoQ gain to cost optimization and slight demand uptick in chemicals. – Kotak Equities: Rs 245 crore (-24.7% YoY, +11% QoQ) – Antique Stock Broking: Rs 270 crore (-17% YoY, +22.4% QoQ) – ICICI Securities: Rs 255 crore (-21.6% YoY, +15.5% QoQ) "We estimate standalone EBITDA of Rs 2.4 bn including (1) VSF EBITDA of Rs 2.6 bn (-35% yoy, -10.4% QoQ) on lower prices, (2) chemicals EBITDA of Rs 3.1 bn (+4.3% YoY, +0.6% QoQ) on gradual recovery in domestic demand and marginally lower costs, and (3) sustained level of losses in paints division with robust revenue growth," Kotak said in a preview note. EBITDA margin – Kotak Equities: 2.7%, down 206 bps YoY, up 19 bps QoQ – ICICI Securities: 2.8%, down 187 bps YoY, up 37 bps QoQ "For Grasim Industries, EBITDA margins are likely to inch up 40bps QoQ (though on a YoY basis, it may still be a drop of 190bps owing to estimated losses for new businesses such as paints and b2b e-commerce segment). We estimate the revenue for the building materials segment (i.e. paints and b2b e-commerce, combined) at Rs 22bn being flat QoQ," ICICI Securities said in a preview note. Key monitorables Among the key monitorables are performance and margin outlook for paints and B2B e-commerce, VSF pricing trend and volume recovery, demand momentum in chemicals and EBITDA contribution from new verticals
Economic Times
29-07-2025
- Automotive
- Economic Times
Hyundai Motor Q1 Results Preview: PAT to decline amid volume drop. 5 things to watch out for
Hyundai's Q1 FY26 earnings may decline across key metrics amid weak volumes, shrinking margins, and lack of Tamil Nadu incentives, say brokerages. Synopsis Hyundai Motor India is expected to report a muted Q1 FY26, with brokerages forecasting a decline in profit, revenue, and EBITDA due to lower sales volumes, margin pressures, and absence of state incentives. Hyundai Motor India (HMIL) will announce its Q1 earnings on Wednesday, July 30, where the company is expected to report a tepid performance for the first quarter of FY26, as per estimates by three major brokerages. ADVERTISEMENT While revenue contraction is seen across the board owing to a sharp decline in volumes and higher discounts, the margins are also forecast to shrink due to negative operating leverage and absence of state-level incentives. Despite sequential improvement in bottom line, analysts foresee year-on-year weakness in all key metrics including net profit, revenue, and profitability. The estimates of Nomura, YES Securities and Kotak Institutional Equities have been taken into account. Here's their expectations on these 4 major metrics:The pressure on the bottom line was on account of margin contraction and lower volumes.– Nomura: Rs 1,215 crore, down 18% YoY and down 25% QoQ ADVERTISEMENT – YES Securities: Rs 1,354 crore, down 9.1% YoY and down 16.1% QoQ– Kotak – Rs 1,246 crore on adjusted basis, down 16.4% YoY and down 22.8% QoQ ADVERTISEMENT Brokerages see revenue decline on volume dip YoY even though a richer product mix helped ASPs rise modestly.– Nomura: Rs 16,575 crore, down 4% YoY and down 8% QoQ ADVERTISEMENT – YES Securities: Rs 16,931 crore, down 2.4 YoY and down 5.6% QoQ– Kotak Equities: Rs 16,779 crore, down 3.3% YoY and down 6.5% QoQ ADVERTISEMENT The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is expected to go down YOY and sequentially. – Nomura: Rs 1,989 crore, down 15% YoY and down 21% QoQ– YES Securities: Rs 2,184 crore, down 6.7% YoY and 13.8% QoQ– Kotak Equities: Rs 2,011 crore, down 14.1% YoY and down 20.6% QoQYES in its preview note said that the margins are expected to compress due to absence of Tamil Nadu incentives, higher discounts, and negative operating leverage.– Nomura: 12% down 149 bps YoY and down 212 bps QoQ– YES Securities: 12.9%, down by 60 bps YoY and down by 120 bps QoQ)– Kotak Equities: 12% in Q1FY26 versus 13.5% in Q1FY25 and 14.1% in Q4FY25Brokerages project EBITDA margins to decline sharply due to increased discounts and softer in its preview note said that volume could fall 6% YoY while higher discounts will dent margins though the average selling price (ASP) increase of 3% is likely to offset this amid a richer product mix (higher mix of SUVs) in 1QFY26. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Economic Times
29-07-2025
- Business
- Economic Times
Tata Steel Q1 results preview: PAT may surge up to 55% YoY despite revenue dip; Europe losses seen narrowing
Tata Steel will announce its Q1 earnings on Wednesday, July 30. The steel major is expected to report a sharp year-on-year rise in profitability for Q1FY26, driven by improved margins in its India business, supported by higher steel realizations and lower input costs, particularly coking coal. ADVERTISEMENT Despite a likely decline in volumes due to plant maintenance and export headwinds, operating performance is projected to improve significantly. Losses from European operations are expected to moderate due to cost optimization, especially in the Netherlands. However, revenue growth is projected to remain tepid, with most brokerages forecasting a year-on-year and sequential decline. YES Securities: Rs 1,486 crore (up 55% YoY, up 14% QoQ) Rs 1,486 crore (up 55% YoY, up 14% QoQ) Nuvama: Rs 1,680 crore (up 26% YoY, down 1% QoQ) Rs 1,680 crore (up 26% YoY, down 1% QoQ) Kotak Equities: Rs 1,773 crore (up 35% YoY, up 5% QoQ) Rs 1,773 crore (up 35% YoY, up 5% QoQ) JM Financial: Rs 1,789 crore (down 27.3% YoY, up 43.6% QoQ) YES Securities: Rs 54,116 crore (down 1.2% YoY, down 3.7% QoQ) Rs 54,116 crore (down 1.2% YoY, down 3.7% QoQ) Nuvama: Rs 51,691 crore (down 6% YoY, down 8% QoQ) Rs 51,691 crore (down 6% YoY, down 8% QoQ) Kotak Equities: Rs 50,515 crore (down 8% YoY, down 10% QoQ) Rs 50,515 crore (down 8% YoY, down 10% QoQ) JM Financial: Rs 54,208 crore (down 0.4% YoY, down 2.7% QoQ) Nuvama attributed the 15% QoQ drop in sales volume (to 4.75 mt) to scheduled plant maintenance shutdowns and muted export demand. YES' revenue projections assume a drop in volumes from Q4FY25. Kotak highlighted weak volume trends as a drag on topline despite better realizations. YES Securities: Rs 6,947 crore (up 61 bps YoY, up 117 bps QoQ) Rs 6,947 crore (up 61 bps YoY, up 117 bps QoQ) Nuvama: Rs 7,179 crore (up 7% YoY, up 9% QoQ) Rs 7,179 crore (up 7% YoY, up 9% QoQ) Kotak Equities: Rs 7,361 crore (up 10% YoY, up 12% QoQ) Rs 7,361 crore (up 10% YoY, up 12% QoQ) JM Financial: Rs 7,168 crore (up 11.9% YoY, up 6.7% QoQ) On the margin front, YES expects the company to benefit from the rise in steel prices in India, while falling coking coal prices are likely to support EBITDA. Kotak attributes the improvement to lower coal costs and a 4% QoQ improvement in Indian realizations. Nuvama expects higher EBITDA per tonne, driven by better pricing and lower input costs in India. ADVERTISEMENT Kotak Equities estimates EBITDA margins at 14.6%, rising 234 bps YoY and 290 bps QoQ, supported by operating leverage and favorable commodity trends. ADVERTISEMENT Losses in Tata Steel Europe are expected to narrow QoQ. Nuvama estimates EBITDA at -$28/t, improving from -$39/t in Q4FY25, driven by lower raw material costs in the Netherlands. EBITDA per tonne is expected to rise to $38/t (vs $8/t in Q4FY25), while losses in the UK may shrink due to lower fixed estimates Europe to break even with $2/t EBITDA (vs -$36/t in Q4FY25), aided by $48/t EBITDA at Dutch operations and reduced losses in UK operations during the quarter. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
21-05-2025
- Business
- Time of India
ITC Q4 Preview: Profit may fall 1% YoY; Cigarettes, agri to drive revenue growth
Diversified conglomerate ITC is expected to post moderate revenue growth, led primarily by its cigarettes and agri businesses. According to an average estimate of five brokerages, revenue is seen rising 2 per cent year-on-year (YoY). The same estimates revealed that profit is likely to fall 1 per cent . Cigarette revenue is projected to rise by about 7 per cent year-on-year, driven by 4.5 per cent volume growth. The company may see a decline of 195 basis points in cigarette EBIT margins this quarter, but easing tobacco prices could support a recovery in coming quarters. The agri business is anticipated to deliver strong double-digit growth, benefiting from higher commodity prices, especially leaf tobacco. In contrast, the FMCG segment is expected to post 4.5 per cent revenue growth, with muted profitability due to raw material inflation in key inputs like edible oil, wheat, and potatoes. The paperboard segment may remain subdued with modest revenue growth of 3.7 per cent , facing headwinds from weak demand, lower realizations, and competition from low-cost Chinese imports. EBIT margins here are expected to hover around 10 per cent , suggesting they may have bottomed out. Overall, excluding the recently demerged hotels business, ITC's like-for-like gross sales are estimated to grow around 6.5 per cent YoY, while EBIT could decline slightly by 0.5 per cent , reflecting margin pressures across key business segments. Here's what brokerages expect from ITC Q4: Antique broking ITC's revenue is likely to be driven by cigarettes and the agri business. Cigarette revenue/ EBIT to grow 7 per cent / 4 per cent driven by ~3 per cent volume growth. FMCG business to report 2 per cent growth, while profitability would be muted due to rise in commodity prices. The agri business should report strong double digit growth in revenue, with profitability benefiting from an increase in prices of leaf tobacco and other agri commodities. Paper performance could be muted. Kotak Equities We estimate cigarette volume growth at 4.5 per cent YoY, translating into a 7 per cent growth in gross cigarette sales. We expect cigarette EBIT growth at 3.5 per cent YoY, with a 195 bps YoY decline in EBIT margin, due to some inflation in leaf tobacco and other inputs (leaf tobacco prices are expected to ease and should aid margin recovery by 2Q/3QFY26). Motilal Oswal The cigarette business is expected to show stable volumes and pricing, with the portfolio continuing to grow, aided by improvements in the product mix. We model 4.5 per cent volume growth in the business in 4QFY25. We expect 6 per cent YoY sales growth in the cigarette business and 2 per cent YoY sales growth in the FMCG business. The FMCG business continues to see pressure in urban demand. The paper segment remained weak as an influx of cheap Chinese paper has prompted regional players to offer more discounts to customers. The agriculture segment performed well during the quarter.
