M&M, BPCL to announce Q2 results today; what to expect

Two Nifty companies Mahindra & Mahindra (M&M) and Bharat Petroleum Corporation Ltd ( BPCL) are scheduled to announce their financial results for the quarter ended September 30, 2017 on Friday.

Shares of M&M and BPCL were down 0.59 per cent and 1.93 per cent at Rs 1,353.45 and Rs 512, respectively.

Here’s what market analysts are expecting from their Q2FY18 results:

Mahindra & Mahindra: Edelweiss Securities believes that Mahindra and Mahindra (including MVML) is likely to report 13.10 per cent year-on-year rise in core profit after tax figures at Rs 1,417 crore for the quarter ended September 30, 2017. EBITDA and revenue can see a jump of 20 per cent and 17.1 per cent on year-on-year basis in Q2.

“We expect revenue growth of 17 per cent YoY largely driven by volume growth of 16 per cent YoY. We expect operating margins to see sequential improvement of 60bps to 14.8 per cent led by operating leverage benefit,” the brokerage house said.

BPCL: Prabhudas Lilladher believes that BPCL may report improvement in profits for Q2FY18, given higher refining profits and inventory gains. Also, higher marketing margins along with strong volume trends will provide support to earnings. The brokerage house has factored in $9.5/bbl for Q2 (US$4.9/bbl in Q1). It further expects refinery thruput of 6.7MTPA, against 6.4MTPA in Q1. The company may report 30.70 per cent year-on-year rise in reported profit after tax figures.