MUMBAI - Axis Bank is poised to reveal an uptick in Net Interest Income (NII) and net profits for the third quarter of the fiscal year 2024 (Q3FY24), signaling a robust performance despite an anticipated decrease in Net Interest Margins (NIMs) due to rising borrowing costs. In contrast, Zee Entertainment Enterprises has faced a setback as CLSA downgraded its stock target following the collapse of its planned merger with Sony (NYSE:SONY) Pictures Network (LON:NETW).
Several other companies have also reported their financial outcomes, demonstrating a mixed bag of results. Coforge and Colgate-Palmolive (NYSE:CL) India both announced profit increases, with Colgate noting a particular surge in toothpaste sales. Meanwhile, Mangalore Refinery and Petrochemicals Limited (MRPL) reported a significant turnaround with a profit in the quarter, achieving reduced total expenses even amidst lower revenue.
In the energy sector, Reliance Industries Limited (RIL) delivered a strong performance with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Profit After Tax (PAT) figures that exceeded market anticipations. This led Elara Securities to revise their stock target price for RIL upwards.
In the infrastructure domain, S&P Global has revised the outlook for Adani Ports and Special Economic Zone (APSEZ) and Adani Electricity Mumbai Limited (AEML) to positive after both companies successfully addressed claims of financial irregularities.
The automotive industry is also witnessing significant developments, with Tata Motors (NYSE:TTM) gearing up to commence electric vehicle (EV) production at its Sanand plant in April, marking a strategic move in the rapidly evolving EV market.
Additionally, L&T Finance Holdings, Havells India, and Karnataka Bank are among the financial institutions that have released their quarterly financial results, contributing to a broader picture of the financial health of Indian companies in diverse sectors.
InvestingPro Insights
Axis Bank (AXBK) is expected to showcase a promising financial performance in the upcoming earnings report. According to real-time data from InvestingPro, Axis Bank's net income is anticipated to grow this year, which aligns with the positive outlook on Net Interest Income (NII) and net profits for Q3FY24. Despite the challenges posed by a competitive banking landscape and potential pressure on Net Interest Margins (NIMs), Axis Bank remains a prominent player in the Banks industry.
InvestingPro Tips suggest that while the bank has been quickly burning through cash, analysts predict the company will be profitable this year, which is consistent with its history of profitability over the last twelve months. However, investors should be aware that two analysts have revised their earnings downwards for the upcoming period, and the bank suffers from weak gross profit margins. Additionally, the valuation implies a poor free cash flow yield, which is a crucial metric for assessing financial health.
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