Hero MotoCorp, M-;M, Hindalco, MRF, Bharat Forge, Alembic Pharma among key Q3 earnings to watch today

10 Feb 2022 , 09:56 AM

Hero MotoCorp, Mahindra & Mahindra and Hindalco Industries are the major Q3FY22 earnings to watch today. Also, companies like  Zomato, ABB India, Alembic Pharmaceuticals, Bharat Forge, Gujarat State Petronet, Hindustan Aeronautics, MRF, Strides Pharma Science, Tata Chemicals and Welspun Corp will be in focus ahead of their Q3 earnings.

These companies are going to announce their financial performance for the quarter ending December 2021 (Q3FY22) period.

In Q3FY22, Hero MotoCorp is expected to log a subdued performance in this quarter with volume declining by 30% on a YoY basis. For the third quarter (October-December) of FY22, the Company’s total volumes stood at 12, 92,136 units. The top-line front is seen to fall 21.9% on a YoY basis, however, will be partly aided by price hikes. It needs to be noted that, weak demand during the festive season and in rural markets have impacted two-wheeler sales in the quarter. Higher average selling prices and better performance of exports though could be key positives.

Meanwhile, M&M Q3 earnings are seen to be mixed on the back of a flattish tone in key numbers for the growth. Tractor demand has been sluggish due to unseasonal rains. Further, inflation cost has taken a toll on margins. Overall, the company’s revenue may rise on a single-digit note, however, operating profit will decline as margins will be impacted by cost inflation.

As for Hindalco Industries, the company is seen to record mixed numbers in domestic business, while Aluminium sales volumes are pegged at ~330,000 tonnes (versus 315,000 in Q3FY21 and 338,000 in Q2FY22). Copper volumes could come in at ~100,000 tonnes (versus 73,000 tonnes in Q3FY21 and 110,000 tonnes in Q2FY22). EBITDA margin of domestic business is estimated to rise on a YoY basis but is likely to decline marginally sequentially.

Hindalco’s arm Novelis’ net income attributable to its common shareholder of $262 million in the third quarter of the fiscal year 2022, compared to $176 million in the prior-year period. Novelis net sales increased 33% to $4.3 billion for the third quarter of the fiscal year 2022, compared to $3.2 billion in the prior-year period, primarily driven by higher average aluminium prices. Since October 2021, Novelis has announced several capital expansion projects aimed at increasing capacity and capabilities and achieving its sustainability goal to become net carbon-neutral by 2050. In January 2022, Novelis announced plans to build a $365 million, highly advanced recycling centre for the U.S. automotive market.

Other companies that will announce their Q3 today are –  Aegis Logistics, Amara Raja Batteries, BEML, Computer Age Management Services, Cummins India, Gujarat Pipavav Port, IRB Infrastructure Developers, Indian Railway Finance Corporation, Krishna Institute of Medical Sciences, Dr Lal PathLabs, Mindspace Business Parks REIT, MTAR Technologies, Novartis India, Page Industries, Quess Corp, Reliance Power, SJVN, Speciality Restaurants, Sundram Fasteners, Sunteck Realty, Sun TV Network,  Trent, Titagarh Wagons, Whirlpool of India, West Coast Paper Mills, and Zee Media Corporation.

Markets traded steadily on Thursday’s opening bell ahead of RBI’s bi-monthly monetary policy set to be announced later today. Also, the performance is on the day of the weekly F&O expiry. Investors were upbeat in Power Grid and Tata Power stocks after their Q3 earnings, while they wait for the quarterly financial performance of Hero MotoCorp, M&M and Hindalco. Today, expect some volatility as investors bet cautiously amid RBI policy.