Today, February 6, 2025, is set to be a pivotal day for the Indian stock market, as six prominent companies from the Nifty-50 index—Bharti Airtel, Britannia Industries, Hero MotoCorp, ITC, State Bank of India (SBI), and Trent Limited—are scheduled to announce their Q3 FY25 results. These results will likely significantly impact investor sentiment, sector-specific stocks, and the overall Nifty index. Here’s an analysis of what to expect from each of these major companies:
1. ITC Ltd: Growth Prospects Amid Changes
ITC‘s quarterly results will be keenly watched, especially after the recent demergering of the hotel business. The company is also likely to benefit from no changes in cigarette tax in Budget 2025.
Expected Growth (Q3 FY25):
- Cigarette Volume Growth: 3-4%
- FMCG Revenue Growth: 5-7%
- Hotel Business Growth: 12-15%
- Agri Revenue Growth: 15-20%
- Paper Business Growth: 2-3%
However, the demerger may lead to one-time costs, potentially impacting net profits.
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2. Hero MotoCorp: Maintaining Growth Momentum
Hero MotoCorp is likely to report 3% in its net profit and 4% in the top line, given the estimated volume growth steady year-on-year but a probable decline of 4% sequentially.
Key Points:
- Sales Volume: Flat year-on-year, with a 4% decline compared to the previous quarter.
- Average Selling Price (ASP): Expected to increase by 4%.
- Rural Demand: Strong rural demand may support growth.
3. Britannia Industries: Margin Pressure Ahead?
Analysts predict Britannia will see a 4-5% growth in domestic volume, but value growth could be limited to just 0.5-1%. Gross margins are expected to shrink by around 2%, primarily due to the rising cost of raw materials.
Key Factors:
- Gross Margin: Expected 2% decline.
- Management Focus: The company’s expansion into new categories and urban demand trends will be crucial.
4. Bharti Airtel: ARPU Growth Likely
Bharti Airtel will likely report Q3 results with strong revenue growth, at 7.1% revenue and 34.1% net profit rise. The Average Revenue Per User will increase because of the tariff hike in July 2024. The full acquisition of Indus Towers will strengthen its financial structure.
Expected Highlights:
- Revenue Growth: 7.1%
- Net Profit Growth: 34.1%
- ARPU Impact: Positive change due to tariff hikes.
5. Trent Ltd: High Base Effect on Growth
Trent Limited is likely to report 35% revenue growth and 40% net profit rise. However, with strong growth in previous quarters, there may be slight pressure this time on account of a high base effect. Weakness in consumer sentiment could further impact margins.
Key Takeaways:
- Revenue Growth: 35% expected.
- Net Profit Growth: 40% expected.
- Expansion: The company’s expansion plans with new store openings and brand portfolios could help in the long run.
6. State Bank of India (SBI): Bank Sector’s Benchmark
The country’s largest bank, SBI, is expected to take the entire banking sector in the direction it wishes. Analysts expect NII to grow but may remain stable for net profit growth.
Key Points:
- NII Growth: Expected rise.
- Net Profit: Stable growth.
Should Investors Keep an Eye on These Stocks?
- ITC and Bharti Airtel are poised to deliver strong Q3 results.
- Hero MotoCorp and Trent Ltd. might see limited growth this quarter.
- Britannia and SBI are expected to face margin pressures.
Conclusion:
If you are invested in FMCG, banking, auto, retail, or telecom sectors, watch the Q3 results released today very closely. The results impact the companies’ performances and will reflect on the overall Nifty-50 index and the sector-specific stocks.
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Expected Q3 Results Summary:
| Company | Revenue Growth | Net Profit Growth | Key Focus |
|---|---|---|---|
| ITC Ltd. | Cigarette: 3-4%, FMCG: 5-7% | Temporary profit pressure due to demerger | Cigarette, FMCG, Hotel, Agri Revenue |
| Hero MotoCorp | 4% | 3% | Rural Demand, Stable ASP |
| Britannia Industries | 4-5% | 0.5-1% | Margin pressure due to raw material costs |
| Bharti Airtel | 7.1% | 34.1% | ARPU, Indus Towers acquisition |
| Trent Ltd. | 35% | 40% | Expansion plans, Weak consumer sentiment |
| SBI | NII Growth | Stable | Banking Sector Performance |
Keep a close watch on these developments today, as they could steer the course for sectors and influence market sentiment in the short term.
