Q3 results today: Eternal among 59 companies to report earnings on Wednesday

The December quarter earnings season continues on Wednesday with as many as 59 companies set to announce their Q3 results. Key results to watch out for include Eternal, DRL, HPCL and Tata Communications.

Apart from these, companies such as Bank of India, Waaree Energies, Supreme Industries, PNB Housing Finance, Anant Raj, Canara HSBC will also report their quarterly numbers.

What to expect from Eternal Q3 results

Eternal is expected to report strong headline growth in the December quarter, driven largely by the shift of Blinkit to a first-party (1P) model and continued expansion in quick commerce. On average, five brokerages expect consolidated revenue to rise 193% year-on-year in Q3, while profit after tax is seen growing 51% from a year ago.

However, analysts flag that margin trends and losses in Blinkit and newer businesses will remain key variables, even as food delivery continues to show gradual improvement.

The food delivery business is expected to deliver steady growth in Q3, though at a slower pace compared with earlier quarters. Nuvama estimates food delivery net order value to grow 2.2% quarter-on-quarter and 14.1% year-on-year, reflecting stable demand but limited acceleration.

Motilal Oswal expects order value for food delivery to grow around 12% year-on-year, with take rates holding at about 21.5%. Kotak Equities projects 18% year-on-year growth in food delivery GMV.

Dr Reddy's Q3 expectations

Dr Reddy's Laboratories is expected to report a muted performance in the December quarter, with pressure from the US business offsetting steady growth in India and Europe. On average, five brokerages expect consolidated revenue to decline about 1% year-on-year in Q3, while profit after tax is seen falling 22% from a year ago, reflecting lower contribution from gRevlimid and margin compression.

The US business is expected to remain the key drag on overall performance. Axis Securities expects US sales of around $310 million, with gRevlimid limits resulting in a negligible contribution during the quarter. Kotak Equities models slightly higher North America sales of $325 million, but still estimates a sharp 13% quarter-on-quarter decline due to pricing pressure and erosion in the base business.

Motilal Oswal is more cautious, projecting a 21.6% year-on-year decline in North America sales to about $310 million, led by intensified pricing pressure on gRevlimid. YES Securities also notes that Revlimid will no longer be a meaningful contributor after more than two years of sales, exposing the underlying growth trajectory of the US base portfolio.

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