Here are the earnings that can be expected from these companies

CASTROL INDIA (Q3)

Net sales: Rs6.4 billion-Rs7.2 billion
Net profit: Rs1.1 billion-Rs1.5 billion

Operating margins are expected to be about 500bps lower due to higher raw material prices and a weaker rupee. The quarter is also seasonally weaker for Castrol so q-o-q volumes may also dip.

In the September quarter, its FII shareholding went up to 6.3% from 5.8% in June and 5.2% y-o-y. However, the DII share came down to 7.3% from 7.8% in June and 8% y-o-y. Promoter share was steady at 71%.

In the June quarter Castrol earned a net profit of Rs1.5 billion vs. Rs1.3 billion y-o-y. Its net sales were Rs7.5 billion vs. Rs6.4 billion y-o-y. In the September 2009 quarter, Castrol earned a net profit of Rs956 million and net sales of Rs5.7 billion. The share price hit a new all-time high of about Rs558 late August. However, since then it has oscillated in the
Rs480-Rs540 range.

EXIDE INDUSTRIES (Q2)

Net sales: Rs11.4 billion-Rs12.3 billion
Net profit: Rs1.8 billion

Watch out for statements about its battery sales to Tata Motor's Nano model since the automobile manufacturer was planning to ramp up capacity at its Sanand plant in Gujarat. Exide is one of the largest battery suppliers for the Nano. The company had announced last quarter that it is planning to spend Rs4 billion in FY11 on capacity expansions.

The telecom segment continues to be a laggard for this company. However in the previous quarter, UPS, especially the home inverter segment, had done very well - however, the commercial UPS segment had not done so well.

Watch out for statements about lead recycling as well. This is supposed to be a major money saver for Exide. About three years ago, in October 2007, Exide entered into lead smelting and recycling to reduce its dependence on lead imports. Currently, its tie-ups in this direction are providing about 45% of its lead requirements, which are expected to inch up to 50% by the end of FY11. The company's target is 100%.

In the June quarter Exide earned a net profit of Rs1.6 billion vs. Rs1.2 billion y-o-y. Its net sales were Rs11.5 billion vs. Rs9 billion y-o-y. In the September 2009 quarter, Exide earned a net profit of Rs1.5 billion and net sales of Rs9.5 billion.

The stock hit a new all-time high of Rs179 today at 11:15 AM on the BSE. FII shareholding in the stock has almost doubled from a year ago to 15% while DII share has come off a bit to 16.5%.

(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife).— Munira Dongre