D-Mart Q1 Preview: PAT growth likely to trail sales as margin under pressure

Retail chain DMart's revenues are expected to grow in double digits, while margins may contract due to lower discretionary spending and higher store addition. DMart's net profit is seen rising by 19-44% according to an average estimate of five brokerages. The company added 18 new stores bringing the total to 324, and sales per sq ft may remain under pressure due to larger store sizes and lower discretionary and general merchandise sales. Consolidated revenue is expected to grow by 35% YoY to INR 11,870 crore, with adjusted revenue estimated to grow ~12% on a like-to-like basis.

In the jewellery segment, 19% revenue growth was led by 20% growth in the domestic business and lower primary outgo from India to the international entities (driven by periodic inventory realignment)

ETIG's estimates showed aggregate net profit of Nifty 50 companies may climb 37.8% year-on-year in the three months to September, the highest since the second quarter of 2021 when profit growth, on a base of unprecedented contraction triggered by Covid-era mobility curbs, was 48.7%.

Nifty companies UltraTech, SBI Cards, Star Health and IndiaMart will release their Q4 earnings today. Motilal Oswal predicts UltraTech Cement's sales volumes growth by 14% YoY and 22% QoQ. SBI Card's revenue growth is expected at 15% YoY, while NII growth is seen at 3%. Kotak Institutional Equities estimates Star Health to report a net profit of Rs 81 crore this quarter. Lastly, IndiaMart is expected to report robust revenue growth, while the bonus issue will be considered with the Q4 results.

Titan added a total of 90 stores during the quarter, taking the group's total presence to 2,949 stores. At the end of the September quarter, Titan had 2,859 stores.

Company predicts higher store productivity with larger store format.

DRL Q3 Results: The profit was slightly above the ET Now poll estimate of Rs 1,337 crore. Revenue from operations increased 7% year-on-year (YoY) to Rs 7,215 crore. EBITDA for the reporting period stood at Rs 2,111 crore, while margins came in at 28%.

Reliance Industries (RIL) is set to release its December quarter earnings, and investors are cautious. RIL shares have gained 6% in January. The earnings will determine the sustainability of the gains. Consolidated revenue is expected to rise 5% YoY to Rs 2.31 lakh crore. Consolidated net profit is expected to grow 9.3% YoY to Rs 17,257 crore. Reliance Jio Infocomm and the retail business are expected to perform well, while the oil-to-chemicals business may see a drop in earnings. RIL shares have fallen post-earnings in the past.

In Q1FY24, IndusInd Bank’s net profit is expected to rise around 33% year-on-year (YoY) to ₹2,180 crore.

The Bengaluru-based software major has reported 11% year-on-year growth in net profit at Rs 5,945 crore for the quarter ended June. The profit is lower than the ET Now Poll estimate of 6,150 crore. Infosys earnings remained muted on a sequential basis in the June quarter, given a significant slowdown in business amid global macroeconomic headwinds.