Q1 results today: Grasim, Info Edge among 306 companies to announce earnings on Friday

The first quarter earnings season is underway and as many as 306 companies will announce their quarterly numbers on Friday. Key results to watch out include those of Trent, Grasim, Info Edge and Honasa Consumer.

Apart from the above, companies like Alkem Labs, Advance Metering, Apollo Micro Systems, Berger Paints, Cella Space, CESC, India Cements, Innova Captab, Insecticides, CE Info Systems, Reliance Capital among others will also announce their quarterly results.

Grasim Q1 expectations

Grasim Industries is expected to report a net profit in the range of Rs 104-231 crore for the quarter ended June 2024, according to estimates given by four brokerages. The growth in profit after tax (PAT) is expected to decline within a wide range between 35% and 71% year-on-year.

Meanwhile the revenue for the reporting quarter is seen at Rs 7,396-7,785 which may be an uptick of 17-25% YoY, the estimates revealed.

The estimates have been given by Kotak Institutional Equities, Nuvama Institutional Equities, Sharekhan and Antique Stock Broking.

The highest PAT estimates has been given by Kotak while the lowest is by Sharekhan. As for the revenue, Antique remains most bullish while Sharekhan is the most conservative in the pack.

The decline in net profit in YoY and QoQ profit is being attributed to losses in paints and VSF businesses. Moreover, weak operating margins along with increased interest and depreciation could be reasons behind the dent in net earnings.

Kotak sees a 35% YoY decline in the company's net profit estimating it at Rs 231 crore. The revenue from operations could be around Rs 7,631 crore, which may go up by 22% YoY and 13% QoQ.

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is pegged at Rs 488 crore which may fall by 38% YoY and 7% QoQ. Meanwhile, EBITDA margin is estimated at 6.4% for QiFY25, which may be a 440 bps YoY decline and 139 bps QoQ decline.

EBITDA losses are seen on account of higher losses in the paints division post the first full quarter of operations. EBIT could go down by 61% on a YoY basis while 21% on the QoQ basis.

"We expect a marginal 0.4% QoQ decrease in volumes in VSF operations on continued weakness in VFY segment and 4.1% qoq volume increase in chemical operations on gradual domestic demand improvement," Kotak's preview note said.

Sharekhan expects net profit at Rs 104 crore, which could be a 71% YoY climb down while a fall of 62% on the QoQ basis. Revenue for the reporting quarter is expected to increase by 19% on a YoY basis while by over 9% on the QoQ basis at Rs 7,396 crore.

The operating profit margin (OPM) is seen at Rs 7.1 crore which could go down by 365 bps on the YoY basis while by 63 bps on the QoQ basis.

"We expect mid single digit revenue growth for Viscose and chemical vertials. Higher B2B revenues and commencement of paints revenues to aid overall standalone revenue growth y-o-y. OPM is expected to remain weak on account of continued losses in new businesses," Sharekhan said in a preview note.

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