Q1 Results Today: SBI among 41 companies to announce earnings on Saturday

The first quarter earnings season is underway and as many as 41 companies will announce their quarterly numbers on Saturday. Key results to watch out for include that of SBI and Divi's Labs.

Apart from the above, companies like Affle (India), Bank of India, Capri Global, Chemcon Speciality Chemicals, JK Tyre, Amara Raja Battery, Utkarsh SFB among others will also declare their first quarter results.

SBI Q1 expectations

India's leading public sector lender State Bank of India (SBI) is likely to see a moderation in earnings for the first quarter ended June 2024 due to higher provisions.

Net profit for the April-June 2024 period may decline 3% year-on-year, according to an average estimate of six brokerages. Net interest income for the same period, meanwhile, is seen rising around 10% year-on-year.

Analysts estimate the provisions to rise anywhere between 30-70% year-on-year during the quarter.

In the preceding March quarter, SBI's net profit rose 24% year-on-year to Rs 20,698 crore and the net interest income (NII) was up 3% year-on-year.

Axis Securities expects advances and deposits growth to remain healthy, while C-D ratio to remain broadly stable quarter-on-quarter.

"NII growth to be soft, NIMs likely to witness marginal compression sequentially. Opex ratios to remain under control, PPOP growth expected to disappoint," the brokerage said.

YES Securities, meanwhile, sees sequential loan growth will be in the 2.5% ballpark due to idiosyncratic growth trajectory.

"NII growth will be slightly slower than average loan growth due to relatively higher recoveries and interest on income tax refunds in 4Q. Consequently, NIM will be slightly lower sequentially," it said.

Motilal Oswal, on the other hand, expects cost ratios to remain under control, while asset quality is expected to improve further and margin may witness a slight compression.

Kotak Securities expects operating profit growth to decline 6% year-on-year due to higher operating expenses while it sees NIM normalisation and lower recovery from written-off pool.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)