Q1 Results 2024: With many biggies like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Jio Financial Services, Nestle India, HUL, Nestle, HDFC Bank, Axis Bank, SpiceJet, L&T, IGL, Infosys, Paytm, CEAT, DLF, and many others already having released their Q1 results, the first quarter earnings season is now in full swing.
Today is another busy day on the earnings calendar with companies like Bharat Electronics, Adani Total Gas, Colgate Palmolive (India), Hindustan Petroleum Corporation, ACC, Adani Wilmar, Vedant Fashions, Whirlpool of India, Pfizer, Kansai Nerolac Paints, Strides Pharma Science, KEI Industries, Restaurant Brands Asia, Wonderla Holidays, Apollo Pipes, among many others slated to announce their Q1 numbers.
This week too will be in focus with market participants and investors keen on the performance of players like GAIL India, Indian Oil Corporation, Castrol India, Maruti Suzuki India, Tata Steel, Mankind Pharma, ITC, Tata Motors, Dabur India, State Bank of India, among many others.
Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited, said, “We are happy to report another quarter of strong and consistent performance led by robust topline growth across the portfolio and continued strengthening of competitive performance. Our toothpaste portfolio witnessed double-digit growth driven by high-single digit volume growth. Our continued investments in perceivable superiority in product, brand building and innovation are yielding significant results while strengthening our brand metrics to highest ever levels. In this quarter, our Toothbrush portfolio has also seen a concrete positive shift in competitive growth trajectory with strong double digit growth in topline. EBITDA margins remained consistent despite the higher investment in advertising, which increased by 10 per cent y-o-y.”
Colgate-Palmolive (India) Limited delivered a 13.0 per cent year-on-year topline growth for the quarter ended June 30, 2024. Net sales for the company increased to Rs 1,485.8 crore from Rs 1,314.7 crore. The quarter witnessed continued demand pickup in rural markets outpacing growth in urban markets for the second quarter in a row. Led by this and good all-round performance of toothpaste, toothbrush and personal care, domestic revenues grew by 12.8 per cent year-on-year for the quarter.
Colgate-Palmolive (India) Ltd on Monday recorded Q1 profit for the financial year 2024-25 at Rs 363.98 crore, up 33 per cent in comparison to Rs 273.68 crore posted during the first quarter of FY24. It posted revenue from operations at Rs 1496.71 crore, up 13.1 per cent as against Rs 1323.67 crore during the same period last year. The company EBITDA stood at Rs 508.3 crore, up 21.5 per cent on-year.
Restaurant Brands Asia Ltd on Monday reported its first quarter earnings for the financial year 2024-25 with loss at Rs 52.19 crore, down by 3.4 per cent in comparison to a loss of Rs 54.05 crore recorded during the first quarter of FY24. It posted revenue from operations at Rs 646.69 crore, up 5.9 per cent in comparison to Rs 610.78 crore during the same period last year. The company EBITDA stood at Rs 63 crore, up 31 per cent on-year.
Pfizer Ltd on Monday posted a profit of Rs 150.71 crore for the first quarter of FY25, recording a growth of 61.1 per cent in comparison to Rs 93.53 crore during the same quarter of previous financial year. It posted revenue from operations at Rs 562.86 crore, up 5.9 per cent as against Rs 531.36 crore during the first quarter of FY24. The company EBITDA stood at Rs 177.5 crore, up 60.2 per cent on-year.
US Revenues at a Historic High of $70m in Q1FY25, up 24.5% YoY
• Reaffirming FY25 Revenue Outlook of $285m - $300m
• The US Business Poised to Achieve the ~$400m Objective by FY27-28
Arun Kumar, Founder & Executive Chairperson, and Badree Komandur, MD & Group CEO, said, “Our emphasis on profitability, efficiency and growth has led to a strong performance across markets, allowing us to deliver superior returns ahead of the projected timelines for our FY25 outlook. The company achieved critical thresholds of 20% EBITDA margin, Rs 68.30 crore of reported PAT and 2.3x Debt/EBITDA ratio. We are confident of sustaining the momentum with continuous improvement in the quality of business. The company has increased its focus on digitization, automation, and ESG for better compliance and business outcomes.”
Strides Pharma Science on Monday posted its fiscal first quarter profit at Rs 70.20 crore as against a loss of Rs 7.11 crore recorded during the first quarter of previous financial year. It posted revenue from operations at Rs 1087.51 crore, up 16.9 per cent on-year in comparison to Rs 929.99 crore during the same period of previous year. While the total income recorded by the company was at Rs 1100.22 crore, total expenses incurred during the quarter in review was at Rs 999.51 crore. The company EBITDA grew by 28.7 per cent YoY to Rs 217.00 crore.
Anuj Jain, Managing Director, Kansai Nerolac Paints Ltd, said, “The quarter continued to witness good demand for Automotive Coatings. Demand for Decorative was muted due to unprecedent heatwave, labor shortages and elections. Demand for Performance Coating was subdued however it picked up in June. A combination of measures like cost control, product mix and procurement efficiencies helped improve gross margins over the corresponding quarter last year. Raw material prices have now gradually started to harden due to various geopolitical issues. The company is actively taking steps to mitigate this cost increase.”
“Looking forward, with a favorable monsoon demand should improve for decorative. Given the continued thrust on infrastructure growth, new project and order pipeline we believe demand for performance coatings should be strong,” he added.
Kansai Nerolac Paints Ltd on Monday reported its fiscal first quarter numbers with profit at Rs 230.83 crore, down 68.7 per cent in comparison to Rs 738 crore recorded during the first quarter of previous fiscal year. It posted revenue from operations at Rs 2133.06 crore, marginally lower than Rs 2156.80 crore posted during the corresponding quarter of FY24. The company EBITDA stood at Rs 329.5 crore, down 0.7 per cent on-year.
Suresh P Manglani, ED & CEO of Adani Total Gas, said, “It has been a good start for FY25 as ATGL delivered a robust operational and financial performance by achieving a 21% YoY EBITDA growth on the back of 17% volume growth.”
“During the quarter, ATGL received approval from the regulator for the transfer of Letter of Authorization for Jalandhar Geographical Area (GA) which provides high volume growth opportunities to the Company. We have also crossed a significant milestone of 1000+ EV charging points, reaching 1212 EV charging points across multiple locations,” he added.
CNG Stations network of 927; added 24 new CNG Stations
Total PNG home at 10.2 lakh; added 0.44 lakh new households on PNG
Industrial & Commercial connections at 3,142; added 100 new consumers
Completed ~ 22,510 Inch Km of Steel Pipeline
Adani Total Gas on Monday recorded fiscal first quarter profit at Rs 171.84 crore, up 14.7 per cent in comparison to Rs 149.88 crore during the first quarter of FY24. It posted revenue from operations at Rs 1239.06 crore, up 9.1 per cent as against Rs 1135.35 crore during the same period last year. The company EBITDA up 19.6 per cent YoY at Rs 296.3 crore.
Angshu Mallick, MD & CEO, Adani Wilmar Limited, said, “The consumer shift to branded staples is benefiting us significantly. We have delivered another strong quarter, with double digit growth in both edible oils and Food & FMCG segments. The edible oils volume grew by 12% YoY to surpass 1 mn MT and the Food & FMCG volume grew by 42% YoY, exceeding Rs 1,500 crore in Q1. The stability in edible oil prices augurs well for our business, allowing us to deliver strong profits over the past three quarters. In Q1’25, we achieved our highest-ever EBITDA of INR 619 crores, a 375% increase YoY and PAT of Rs 313 crore.”
“With our trusted brand, Fortune, we expect continued market share gains from regional brands. Our Food products are making significant inroads into Indian households, and we plan to meet this large demand by enhancing our Food distribution through our edible oil network. In under two years since launching our dedicated HORECA distribution channel, we have surpassed Rs 500 crore in revenue on a last twelve-month basis and achieved a 90% YoY volume increase in Q1,” he added.
FMCG major Adani Wilmar today reported its fiscal first quarter earnings with profit at Rs 313.20 crore in comparison to a loss of Rs 78.92 crore recorded during the corresponding quarter of previous fiscal year. It posted revenue from operations at Rs 14,168.58 crore, up 9.6 per cent as against Rs 12,928.08 crore during the same period last year. The company posted its highest-ever EBITDA of Rs 619 crore, up 375 per cent YoY, in Q1FY25 on the back of stability in edible oil prices
Rahul Malani, DVP, Fundamental Research, Sharekhan by BNP Paribas, said, “The bank reported in-line core operational performance. Core PPoP grew by 11% y-o-y/ 1% q-o-q. However PPoP/ PAT were above estimates mainly led by treasury gains and other income. Thus managed to report steady RoA at 2.36%. Outcome in NIMs (marginally lower) and Credit cost were on expected lines. Credit cost continued to remain lower, within guided range at ~44 bps of avg. loans. Deposit growth (+1% qoq) was lower than estimates but remained better than its large peers. Loan growth remained healthy at 3% qoq (in line) resulting in increase in LDR to 86% vs 84% qoq. Asset quality trends saw slight normalisation due to seasonality factor.”
Parth Shah, Research Analyst, StoxBox, said, “With economic activities booming in the country and increasing consumption patterns, the company’s revenue from operations showed a positive growth from the earlier period. Complementing such a situation, the reducing fuel costs aided the company to report a better operational profit during the quarter, thereby enhancing the overall margins. The company also increased its installed capacity during the quarter, signifying its preparedness for the upcoming demand in the country. The company’s increase in its green energy portfolio signals the future segment of growth for the company, thereby indicating the reducing load on traditional power-generating assets. The company’s improvement in the plant availability factor and the plant load factor signifies the constant improvement in the efficiency and effectiveness of the company’s assets in generating energy.”
“Going ahead, the increased focus of the Government on building the power infrastructure and increased demand for domestic consumption (both retail and commercial) would trigger growth for the sector. We believe that a mix of capacity expansion, reduced fuel prices and increased tariff rates would help the company in improving its financial performance going ahead,” he added.
Jinesh Joshi, Research Analyst, Prabhudas Lilladher Pvt Ltd, said, “IndiGo reported better than expected performance with FX adjusted EBITDAR beat of 20% led by compensation benefit received from P&W arising from Aircraft on Ground (AoG) issue. Other operating income (compensation benefit is captured here) was up 2.6x/9.4x on QoQ/YoY basis due to accrual of catch-up component and is expected to normalize in future. Despite a strong performance, our EBITDAR estimates are broadly intact for the next 2 years as revise our fuel CASK assumptions due to 1) rise in VAT rates in few states and 2) induction of less fuel efficient CEO aircrafts via damp lease. IndiGo has charted a growth strategy to deepen international penetration by placing a firm order of Airbus A350-900 sometime back and is taking steps towards premiumization with plans to launch a business class product soon. We expect revenue CAGR of 16.0% for next 2 years with EBITDAR margin of 25.2%/22.7% in FY25E/FY26E.”
Cipla’s 1QFY25 operational profits exceeded expectations, with gross margin up 50 bp QoQ, driven by a superior product mix. The EBITDA margin at 25.6% was 100bp above estimate, reflecting the sales mix & operational efficiency. US revenue grew by 11% QoQ to US$250m, boosted by a 4% market share gain in gAlbuterol, higher sales of gRevlimid and channel filling in gLanreotide. South Africa saw a 19% YoY revenue increase in constant currency or CC terms, driven by the private market. In India, revenue rose by 4.5% YoY, below the 9% estimate, due to distribution model change in the trade generics business.
“We expect the next two years to be relatively moderate for Cipla, with a 9% CAGR led by delay in key launches (gAdvair, gAbraxane). We thus expect the stock to be range-bound in the medium term. Our FY25F/26F earnings estimates stand increased by 4%/2%, respectively, baking in higher margins,” said analysts at InCred Equities.
RevPAR grows 2% YoY: Topline increased 16.2% YoY to Rs3,610mn. Hospitality revenue grew 15.3% YoY to Rs3,255mn, while annuity revenue was up 24.6% YoY to Rs356mn. ARR remained flat at Rs10,446. RevPAR grew 2.0% YoY to Rs7,361, while occupancy stood at 70.5%.
Jinesh Joshi, Research Analyst, Prabhudas Lilladher Pvt Ltd, said, “We cut our EBITDA estimates by 3%/1% for FY25E/FY26E as we re-align our RevPAR growth assumptions and annuity leasing timelines in light of weaker performance in 1QFY25. Hospitality segment reported same-store RevPAR growth of 4% due to elections, severe heat wave and lower number of auspicious wedding days. Nonetheless, management indicated of a strong recovery in Jul-24. Further, while leasing timelines have witnessed some delay, 90% of the portfolio is expected to be leased out by end of the year, resulting in strong traction in annuity income from FY26E. Though there are early signs of headwinds in RevPAR growth, buoyed by operationalization of ~200 new rooms in Lonavala & Bengaluru coupled with expansion in lease portfolio, we expect revenue/EBITDA CAGR of 19%/25% over FY24-FY26E.”
Swarnendu Bhushan, Co. Head of Research, Prabhudas Lilladher Pvt Ltd, said, “Indraprastha Gas (IGL) reported better-than-expected Q1 results with EBITDA at Rs5.8bn (up 11.3% QoQ, PLe: Rs4.8bn) and PAT at Rs4bn (up 5% QoQ, PLe: Rs3.2bn). EBITDA/scm came in at Rs7.4, up 13% QoQ, due to lower employee and other expenses. However, sales volume saw a muted growth of 5.3% YoY (down 1% QoQ). Going ahead, we build in a conservative volume growth CAGR of 6% over FY24-26E with an EBITDA/scm of Rs7.1/Rs7 for FY25/26E.”
“Dr Reddy's reported strong performance, with both topline and EBITDA exceeding our expectations by 5 to 6%. In 1QFY25, Revenue/EBITDA/PAT grew 14%/4%/-1% YoY respectively, driven largely by ramp-up of gRevlimid. Despite higher revenue in the US (USD 463 million, +19% YoY), the EBITDA margin of 27.6% was slightly below expectations due to a significant increase in SG&A expenses – this was led by a sharp rise in freight costs. In other segments, India posted a 15% growth, aided by Sanofi vaccine portfolio. Adjusted for Sanofi vaccines, it grew in mid-single digit. Unlike peers, Dr. Reddy's US pipeline remains relatively opaque to investors. Despite having 23 pending FTF filings and expectations for 25 annual launches, our growth expectations for the US market, excluding Revlimid, appear modest. We believe there could be potential upside here. Additionally, gRevlimid sales estimates are likely to be underestimated as DRRD could have achieved at least USD 150 mn this quarter, reflecting a ~50% QoQ increase. Given this performance, Dr. Reddy’s is expected to generate USD 650mn+ in free cash flow annually over the next three years, potentially raising its cash balance to over USD 1.5 bn by FY27. With a focus on earnings accretive transactions (such as the recent NRT brands acquisition), we see positive potential for core earnings,” stated a report by JM Financial.
ICICI Bank reported a steady quarter, with 15% YoY growth in net earnings. NII was in line, while other income was strong, led by healthy treasury gains and dividends. NIMs inched down 4bp QoQ to 4.36%.
Analysts at Motilal Oswal Financial Services said, “ICICIBC reported a steady quarter, unlike many of its large peers. NII growth has been consistent, and the pace of NIM compression has slowed, while opex has been well under control, even after adjusting for employee increments in 1Q. The bank's substantial investment in technology offers some cushion against opex costs. A stable mix of a high-yielding portfolio (Retail/Business Banking) and ongoing growth in Business Banking, SME, and secured retail segments are driving broad-based growth, helping the bank maintain healthy business diversification. Asset quality has remained stable, with no signs of stress, leading to stable GNPA/NNPA ratios. The additional contingency provisioning buffer of INR131b (1.1% of loans) provides further comfort in case of any future cyclical stress.”
Transport Corporation of India Ltd reported its fiscal first quarter profit at Rs 91 crore, up 10.6 per cent in comparison to Rs 82.30 crore recorded during the first quarter of FY24. It posted revenue from operations at Rs 1045.10 crore, up 10 per cent as against Rs 949.80 crore during the same period last year.
Vineet Agarwal, Managing Director, Transport Corporation of India Ltd, said, “We have delivered a robust performance in the first quarter of FY2025. All our product segments serving various industry verticals have grown, especially coastal shipping, rail multimodal solutions, 3PL/warehousing and cold chain logistics. Our focus remains on providing value added and technologically advanced customized offerings to our customers. TCI continues to innovate and develop sustainable solutions through investments in rail and coastal multimodal assets & networks.”
Ashok Leyland (AL) reported topline growth of 5% yoy and a decline of 24% qoq on seasonality. Volumes during the quarter saw a growth of 6% yoy growth.
“We believe volume growth in Medium and Heavy Commercial Vehicles (MHCVs) to remain subdued in mid-term, while bounce back in Q4 and grow strongly in FY26. Buses shall grow within the segment at a stronger pace mainly on EV demand. GoI’s continuous thrust on capex and strong Infrastructure outlay shall ensure MHCV to lead a comeback. LCV demand is in place and shall grow at mid to higher single digit in FY 25,” said analysts at LKP Securities.
Parth Shah, Research Analyst, StoxBox, said, “The severe heat situation throughout the country coupled with increased economic activity during the quarter led to a surge in the overall electricity demand in the country. Also, the notable increase in consultancy and telecom revenue compared to the previous year’s quarter assisted the company in reporting stable revenues for the quarter. The reduced costs during the quarter have helped the company register a positive PAT growth compared to the previous year's quarter, thereby improving the net profit margins during the quarter.
Going forward, the rising power demand due to an increase in economic activities, and the government’s push toward power infrastructure are set to drive the growth in the utility sector in India. Also, the company’s healthy order pipeline and strong capex outlay provide a positive revenue outlook for the company from a long-term perspective. Such factors combined with the upcoming renewable projects and combined with a robust business model of the company are expected to bolster the growth prospects of the company. Hence, we expect the company to improve its financial performance in the longer run and therefore remain positive for a medium to long-term period.”
Ashok Atluri, Chairman and Managing Director, Zen Technologies, said, “I am pleased to share that Zen Technologies Limited has had an exceptionally strong start to FY25.” He said that the company’s revenue growth is mirrored in its operational EBITDA which reached Rs 103.20 crore.
“Our cornerstone remains in training and simulation, including technical training equipment like virtual simulators and live ranges. In the last few years, the armed forces have recognised the increasing need for tactical training, preparing soldiers for actual combat scenarios. This shift is expected to drive significant growth for our company. Furthermore, the surge in interest post Ukraine war highlights the importance of competent training over merely acquiring advanced equipment. Our early investment in counter-drone systems since 2018 has positioned us at the forefront of this critical technology,” he said.
He also added that the company’s strong balance sheet and ongoing investment in R&D ensure that it remains at the cutting edge of technology, ready to meet evolving customer needs. “We are excited about the future and confident in meeting our guidance of Rs 900 crore of turnover in the current financial year,” he said.
Zen Technologies Ltd reported its fiscal first quarter earnings with profit at Rs 79.49 crore, up 64.1 per cent in comparison to Rs 48.44 crore recorded during the first quarter of previous fiscal year. It posted revenue from operations at Rs 254.62 crore, up 92.2 per cent as against Rs 132.45 crore during the corresponding quarter of previous year.
Today, major companies like Bharat Electronics, Adani Total Gas, Colgate Palmolive (India), Hindustan Petroleum Corporation, ACC, Adani Wilmar, Vedant Fashions, Whirlpool of India, Pfizer, Kansai Nerolac Paints, Strides Pharma Science, KEI Industries, Restaurant Brands Asia, Wonderla Holidays, Apollo Pipes, among many others will announce their Q1 numbers.
Greetings! We, at FinancialExpress.com, welcome you to this live blog where we will bring all the updates on fiscal first quarter earnings today. We will bring together the information of quarter performance by companies across sectors and will also analyse these numbers with the help of major brokerage firms and analysts. Stay tuned.