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In terms of EBITDA and PAT, DAM Capital believes the non-banking sector is likely to report EBITDA growth of 11% YoY and 9% CAGR compared to pre-corona levels. increase. They expect the EBITDA margin to expand by 50bps on a QoQ basis. This is on the back of lower commodity prices, continued improvement in demand and some easing of cost pressures from operating leverage in specialty chemicals. The automotive, hotel, retail, specialty chemicals and logistics sectors have shown improvement in his EBITDA from the first quarter itself. It also expects PAT to grow by 14% year-on-year, largely driven by the automotive, banking and power sectors.
Regarding the bank’s performance in the second quarter of 2023, the bank expects continued earnings momentum driven by loan growth, NIM expansion and lower credit costs. As banks focus on building franchises, sourcing their business, and improving their digital capabilities, we expect operational costs to continue to be a key factor hindering pre-provisioned operating profit (PPoP) growth. For DAM Capital’s coverage universe, NII expects 14.2% year-over-year and 5.2% quarter-on-quarter growth, driven by 19.9% year-over-year and 3.4% quarter-on-quarter loan growth. With yields expected to be lower than QoQ and financial gains expected to be modest, PPOP QoQ could grow 15% more. They also expect NIM to expand by an average of 13bps year-on-year and 5bps quarter-on-quarter, but strategies related to deposit growth will be watched closely.