Amid the ongoing earnings season, two Sensex giants Bharti Airtel as well as ICICI Bank are set to report their Q4 earnings today. While analysts expect billionaire Sunil Bharti Mittal-led telco to report a net loss of more than Rs 1,000 crore, ICICI Bank is expected to report robust growth in net profit for the March quarter, on the back of a low base, solid retail loan growth and moderating provisioning requirements. Bharti Airtel shares are trading 1.2% higher at Rs 335.10, while ICICI Bank shares are down 0.5% to Rs 399.85. We take a closer look at what brokerages expect.
Bharti Airtel Q4 expectations
According to brokerage firm Motilal Oswal, Bharti Airtel is likely to post a loss of Rs 720 crore, even as the firm continues to face stiff competition from Mukesh Ambani-led Reliance Jio. In the quarter ended March 2019, Reliance Jio has reported a net profit of Rs 840 crore. In the Seo-Dec quarter, the telecom firm’s net profit had plunged 72% to Rs 86 crore, as compared to Rs 306 crore, from the year-ago period. Brokerage firm Kotak Institutional Equities estimates a 1% sequential rise in Airtel’s revenue to Rs 10,300 crore. “Reported ARPU will likely see a sharp 14% quarter-on-quarter uptick to Rs 120, largely optical on account of the sharp subscriber base clean-up done in December 2018,” Kotak Institutional Equities said in a recent report.
ICICI Bank Q4 expectations
Brokerage firm Motilal Oswal said that the loan growth is set to come in 14% higher on-year, driven largely by retail loans. The corporate loan growth would be moderate, while overseas book would continue declining, noted Motial Oswal.The firm expects the overall net profit to more than double on-year to Rs 2,162.8 crore. Further, Motilal Oswal anticipates a 13.6% rise in net interest income to Rs 6,839.3 crore.
Watch: Reliance Jio Q4 net profit at Rs 840 crore
Research and brokerage firm Edelweiss Securities expects the private sector lender’s net profit to jump 197.5% as compared to the year-ago period. “Incremental stress addition is likely to stabilise with stress largely emanating from the erstwhile stress pool,” Edelweiss said, adding that the management maintains that slippages in fiscal year 2019 are expected to be significantly lower than in fiscal year 2018.
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