LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

Q4 results likely to show recovery as note-ban woes fade

Jeffries said that the markets are likely already factoring in potential upward revision in consensus earnings in 2017-18.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Q4 results likely to show recovery as note-ban woes fade
Jeffries said that the activity levels in the fourth quarter seem to be returning to the normal levels. Photo: Pixabay
Written By: IANS
Updated: Mon, Apr 10, 2017
01:58 pm
New Delhi, IANS
RELATED NEWS
Rs 2000 note news today: Don't believe fake news! Rs 2000 notes printing stopped? Currency to be banned? Here is truth Rs 2000 note news today: Don't believe fake news! Rs 2000 notes printing stopped? Currency to be banned? Here is truth
Demonetisation: Revealed! Who placed  government's proposal to ban Rs 500, Rs 1000 notes before RBI Board? Demonetisation: Revealed! Who placed government's proposal to ban Rs 500, Rs 1000 notes before RBI Board?
Demonetisation threw up political, economic puzzles: Arvind Subramanian Demonetisation threw up political, economic puzzles: Arvind Subramanian
Demonetisation a massive, draconian, monetary shock: Arvind Subramanian Demonetisation a massive, draconian, monetary shock: Arvind Subramanian
GST, note ban fail to dent monthly registration of companies GST, note ban fail to dent monthly registration of companies

The woes of demonetisation seem to be fading with the January-March activity likely to show recovery from the November lows, a Jeffries India report said on Monday.

"Q4 results should reflect recovery in disbursal and collections from November lows. Companies focus on recoveries in the fourth quarter," Jeffries India said in the report -- `4Q Preview: Demonetisation woes fading`.

Though the Reserve Bank of India (RBI) keeping key rates unchanged and overdue assets slipping into non-performing assets (NPAs) may affect earnings, but it could be offset by lower interest rates and seasonally strong collections, it said.

"Expectations have been reset. We believe markets would look beyond Q4 and focus on outlook for earnings and asset quality in 2017-18," the report stated.

Jeffries said that the activity levels in the fourth quarter seem to be returning to the normal levels, though there are some mixed indications.

"Growth in consumer segment has normalised. Small and medium-sized enterprise (SME) sector was slow but trends are better in the past two months. Commercial vehicle segment has gained from pre-buying ahead of emission norm change, but intensity has been lower than expected," it said.

"In rural areas, disbursal and collections have been strong due to good harvest. Non-bank financial companies (NBFCs) should benefit from lower funding costs. Provisions and gross non-performing advances (GNPA) could rise as overdue assets may partly slip into NPA," it added.

Jeffries said that the markets are likely already factoring in potential upward revision in consensus earnings in 2017-18.

"We expect LIC Housing Finance profit to grow 16% year-on-year led by 15% loan growth. We expect credit costs to be higher due to aging-related provisioning with respect to lumpy legacy project loans. Focus would remain on core home loan growth and prepayment rates and management commentary on loan growth after affordable housing push by the government and spread outlook given recent aggressive rate cuts by banks," it said.

"We estimate Mahindra Finance net profit to fall 4% year-on-year to Rs 3.5 billion. Q4 is seasonally a very strong quarter for it. We expect loans to grow 13.4% year-on-year in Q4."

"Rural sector was hit by demonetisation, but collections have been strong this quarter due to good harvest. Part of overdue assets (Rs 6.7 billion) on which RBI dispensation was applied may slip into NPA, but this may be partly offset by strong collections in Q4," it added.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Note BanImpact of note ban in Q4Q4 resultsEarning seasonReserve Bank of India (RBI)Non-performing Assets (NPAs)DemonetisationLIC Housing FinanceMahindra Financerural sectornon-bank financial companies (NBFCs)Economy
RELATED NEWS
Rs 2000 note news today: Don't believe fake news! Rs 2000 notes printing stopped? Currency to be banned? Here is truth Rs 2000 note news today: Don't believe fake news! Rs 2000 notes printing stopped? Currency to be banned? Here is truth
Demonetisation: Revealed! Who placed  government's proposal to ban Rs 500, Rs 1000 notes before RBI Board? Demonetisation: Revealed! Who placed government's proposal to ban Rs 500, Rs 1000 notes before RBI Board?
Demonetisation threw up political, economic puzzles: Arvind Subramanian Demonetisation threw up political, economic puzzles: Arvind Subramanian
Demonetisation a massive, draconian, monetary shock: Arvind Subramanian Demonetisation a massive, draconian, monetary shock: Arvind Subramanian
GST, note ban fail to dent monthly registration of companies GST, note ban fail to dent monthly registration of companies

LATEST NEWS

Covid 19 symptoms: What is the right oxygen saturation level, when should you see a doctor—EXPLAINED

COVID-19: Hospitals in Delhi-NCR short on oxygen, send SOS to Govt - All details here

Beware! Free internet? Viral message on social media offering internet for free is SCAM - Check full details here

Stocks to Watch With Anil Singhvi: Why Rallis India could help you mint money | EXPLAINED

Covid-19 registration for 18 plus begins on THIS date; check how you can register on cowin.gov.in

KVS Class 1 Admission List 2021-22 Postponed: First selection and waiting list was to be released tomorrow, revised dates to be notified soon - check all details here

LIC policy holders' alert: Check policy, premium status online through these steps; Send SMS on THIS number to check other details

JPMorgan on Aurobindo Pharma stock re-rating trigger and target price

Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in ICICI Bank and Kotak Mahindra Bank

Sensex rallies 375 pts; Nifty tops 14,400

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved