The ongoing earnings season sees several prominent companies gearing up to announce their fourth-quarter results for the fiscal year 2023-24 (Q4FY24).
Scheduled for today, April 19, are Wipro, the third-largest IT services provider in India; HDFC Asset Management Company, the mutual funds arm of HDFC Bank; Jio Financial Services (JFS), a subsidiary of Reliance Industries Ltd; and Hindustan Zinc, a mining major owned by Vedanta.
Preceding Wipro, the other two leading IT firms, Tata Consultancy Services (TCS) and Infosys, revealed their Q4 results on April 12 and April 18, respectively. TCS reported a 9% year-on-year (YoY) increase in net profit at ₹12,434 crore, while Infosys saw a significant 30% YoY rise to ₹7,969 crore.
Here’s a rundown of the major companies set to release their Q4 results today:
1. HDFC AMC: A prominent mutual fund investment company headquartered in Mumbai, established in 1999.
2. Jio Financial Services (JFS): A company demerged from Reliance Industries last year and subsequently listed on the exchanges.
3. Hindustan Zinc: A subsidiary of Vedanta Limited, engaged in mining and production of zinc, silver, cadmium, and lead.
4. Wipro: A renowned Bengaluru-based IT company offering software services globally, founded in 1945.
5. Benares Hotels: A hospitality company operating luxury hotels like Taj Ganges and Nadesar Palace in Varanasi, Maharashtra’s Ginger Hotel, and became a subsidiary of The Indian Hotels Company in 2011.
6. Amal Ltd: A chemical company founded in 1974, based in Ankleshwar, Gujarat, manufacturing and selling Sulphur-based products.
7. Elecon Engineering: Operating since 1951, manufacturing industrial gear and material handling equipment, headquartered in Anand, Gujarat.
8. KP Green Engineering: A Mumbai-based EPC company founded in 2003, specializing in designing and constructing process plants in various industries.
9. Sejal Glass: A major player in the Architectural Glass business, part of the Sejal Group, operating since 1998 and headquartered in Mumbai.
Additionally, HDFC Bank, Bhansali Engineering Polymers, and NB Footwear are scheduled to declare their results on Saturday, April 20th.
Expected Q4 earnings
Wipro’s fourth-quarter earnings are expected to be subdued, with an estimated consolidated net profit of ₹2,746 crore. In the March 2023 quarter, Wipro recorded a net profit of Rs 3,076 crore.
Analysts attribute the anticipated decline in net profit and revenue for the fourth quarter to factors such as seasonal patterns, reduced discretionary spending, and a cautious market sentiment affecting revenue growth across key verticals.
Brokerage analysts forecast Wipro’s revenue to decrease by 4-5% year-on-year (YoY), expected to range between Rs 22,126 crore and Rs 22,346 crore.
In the upcoming fourth-quarter results, HDFC Asset Management Company is anticipated to witness a notable increase in net profit, projected to surge by 35.2% year-on-year (YoY) to ₹508.6 crore. This growth is paralleled by an expected revenue uptick of 37.7% YoY to ₹745 crore. The optimistic forecast suggests a robust performance for the company in terms of both profitability and revenue generation.
Conversely, Hindustan Zinc is expected to encounter a downturn in its Q4 net profit, with estimates indicating a decline of 19.8% YoY to ₹2,080 crore. This anticipated decrease in profitability may be accompanied by a corresponding 11.9% YoY decline in revenue, projected at ₹7,490 crore. Such projections, attributed to Nuvama Institutional Equities, imply potential challenges or adverse market conditions faced by the company during the quarter.
Regarding Jio Financial Services, a subsidiary of Reliance Industries Ltd, its financial performance for the December quarter of the current fiscal year revealed a net profit of ₹293 crore. This marked a decrease from the previous quarter’s net profit of ₹668 crore. Additionally, the company’s net interest income for the quarter stood at ₹269 crore. These figures suggest a fluctuating trend in profitability for Jio Financial Services, indicating potential shifts in market dynamics or operational factors impacting its earnings.
Overall, these anticipated results highlight the varied performance expectations across different sectors and companies within the market, reflecting the diverse economic conditions and industry-specific challenges prevalent during the specified period.
Other companies revealing their Q4 earnings
Several companies are slated to announce their Q4 earnings, including Wipro, Jio Financial Services, HDFC Asset Management Company, Hindustan Zinc, KP Green Engineering, Sejal Glass, Sybly Industries, Elecon Engineering, Rajnish Wellness, Roselabs Finance, Rajnish Retail, Amal, Benares Hotels, and VL E-Governance & IT Solutions.
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