With many in the likes of Tata Consultancy Services (TCS), HCL Technologies, Avenue Supermarts, Jio Financial Services, HDFC Life Insurance Company, Bank of Maharashtra, SpiceJet, and others already having released their quarter results, the Q1 earnings season is in full swing now.
Today, companies like Asian Paints, LTIMindtree, Hathway Cable and Datacom, Lotus Chocolate Company, among a few others, will announce their Q1FY25 earnings.
Till now, besides the ones already mentioned, others like Tata Elxsi, Anand Rathi Wealth, NELCO, GTPL Hathway, Indian Renewable Energy Development Agency, Oriental Hotels, HDFC Asset Management Company, Bajaj Auto, L&T Finance, CRISIL, Century Textiles and Industries, Just Dial, BMW Industries, Aditya Birla Money, Jubilant Ingrevia, and more have already reported their quarter earnings.
LTIMindtree Q1FY25- Major Deal Wins
1. Deal with major US airline leveraging its global delivery footprint in the US, UK, Poland and Australia.
2. Deal with US based insurance and retirement firm for development and support in the Life & New Business area.
3. Strategic outsourcing deal with US headquartered digital marketing company.
4. Leading Japanese automotive company awarded LTIMindtree with a multi-year service desk support contract.
LTIMindtree Q1FY25
Revenue up 2.8% Q-o-Q to Rs 9142.6 crore.
Profit up 3.1% QoQ to Rs 1135.1 crore.
Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree said, "While the environment remains unchanged, FY25 started on a positive note for us with Q1FY25 revenue of $ 1.1 billion, registering a 2.5% QoQ and 3.5% YoY revenue growth in Us dollar terms. Our Q1FY25 EBIT expanded to 15% and order inflow remained stable at $1.4 billion. Our top 3 industry verticals and our largest geography have performed well sequentially. This is attributed to a measured uptick in IT spending for critical initiatives with clients balancing innovation and fiscal prudence.”
Amit Syngle, Managing Director & CEO of Asian Paints Limited, said, “Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter. We delivered a good volume growth of 7% in the decorative segment aided by some movement in rural markets, however value declined by 3% impacted by the price decrease taken earlier in the year and shift in product mix. Unanticipated material price inflation coupled with supply chain challenges impacted profitability of the Decorative business for the quarter. The Industrial business did relatively better and grew by 5.8% by value backed by good growth in Auto OEM and powder coatings segment. Economy segment saw a good offtake aided by the launch of our revolutionary latex paint NeoBharat, which is part of our focused approach to make further inroads in the ‘bottom of the pyramid’ segment.”
“In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually. We remain focused on driving growth through enhanced saliency of our brand, innovation and customer centricity,” he added.
International business:
Sales decreased by 2.3% to Rs 679.1 crore from Rs 695.1 crore on the back of economic uncertainty, forex crisis and liquidity issues in key markets of Asia and Egypt. PBT before exceptional items was Rs 6.5 crore.
Home Décor business:
1) Bath Fittings business: Sales increased by 10.3% to Rs 93.4 crore. PBDIT loss was Rs 1.4 crore against loss of Rs 0.8 crore in the corresponding period of the previous year.
2) Kitchen business: Sales increased by 4.6% to Rs 100.4 crore from Rs 96.0 crore. PBDIT was Rs 0.9 crore. I
3) White Teak and Weatherseal: Sales at White Teak increased by 14.3% to Rs 29.7 crore. Sales at Weatherseal increased by 17.6% to Rs 11.5 crore. Both these recent acquisitions are gaining from synergies with the Asian Paints network.
Industrial business:
1) APPPG: Sales were flat at Rs 293.2 crore. PBT was Rs 29.8 crore
2) PPGAP: Sales increased by 9.6% to Rs 517.1 crores. PBT was Rs 99.2 crore.
Asia Paints on Wednesday reported a profit drop of 24.6 per cent on-year during the first quarter of FY25. The profit was recorded at Rs 1,186.79 crore as compared to Rs 1,574.84 crore reported during the corresponding quarter of FY24. It posted revenue from operations at Rs 8,969.73 crore, down 2.3 per cent as against Rs 9,182.31 crore during the same period last year. The company EBITDA stood at Rs 1,693.7 crore
Jubilant lngrevia Limited posted a profit fall of 15.4 per cent on-year at Rs 48.74 crore for the first quarter of FY25 in comparison to Rs 57.59 crore recorded during the corresponding quarter of previous fiscal year.
Swarnendu Bhushan, Co-Head of Research, Prabhudas Lilladher Pvt Ltd, said, “In Q1FY25, the pharmaceutical segment continued to witness strong volume growth with stable prices. Agrochem sector is expected to improve gradually, but prices are expected to remain under pressure due to demand related challenges and excess supplies from China. Demand for the nutrition segment was stable, while prices saw some uptick towards the end of the quarter. Specialty chemicals saw a 18% YoY growth driven by rising volumes of pyridine and diketene derivatives. Nutrition segment saw 13% sequential improvement in revenue, while acetyl segment, which contributes 40% to the overall revenue, declined by 20% YoY due to lower demand coming from the paracetamol end-use segment and lower acetic acid prices. Although the company has been adding capacities across segments, challenges are expected to persist until international players keep dumping at lower prices and revival of agrochem weakness takes place, which is unlikely until H2FY25.”
Aditya Birla Money reported its fiscal first quarter profit at Rs 16.36 crore, up 73.3 per cent in comparison to Rs 9.44 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 117.86 crore, up 50.2 per cent as against Rs 78.45 crore during the first quarter of previous fiscal year. The NII during the quarter was at Rs 88.6 crore.
Further, the company board also approved the appointment of Ashok Suvarna as the Chief Executive Officer and a designated Key Managerial Personnel of the company. The appointment shall be effective from September 01, 2024, it said.
Alok Industries reported its fiscal first quarter earnings with a loss of Rs 206.87 crore, lower than a loss of Rs 226.14 crore recording during the same period last year. It posted revenue from operations at Rs 1006.30 crore, down 28.9 per cent as against Rs 1414.91 crore during Q1FY24. The company EBITDA stood at Rs 20.7 crore, up 68.3 per cent on-year.
Rural Business Finance:
Q1FY25 disbursements at Rs 5,773 Crore, up 28% YoY.
Book size at Rs 25,887 Crore, up 31% YoY.
Growth aided by the deepening of the customer acquisition funnel, both horizontally through expansion into newer locations and vertically through increasing the number of customers across existing locations.
Farmer Finance:
Q1FY25 disbursements at Rs 1,903 Crore.
Book size at Rs 14,204 Crore, up 8% YoY.
Growth aided by steady disbursement while the industry growth remained flat.
Two-wheeler Finance:
Q1FY25 disbursements at Rs 2,621 Crore, up 52% YoY.
Book size at Rs 12,025 Crore, up 31% YoY.
Growth aided by the activation of new dealership points during the quarter, as well as continued focus on Prime disbursements. Additionally, LTF achieved 100% YoY growth in EV financing and received a strong reception for its offering under the Superbike segment.
Personal Loans:
Q1FY25 disbursements at Rs 1,178 Crore, up 1% YoY.
Book size at Rs 6,667 Crore, up 11% YoY.
Growth aided by associations with newer DSA channels across various locations.
Housing Loans and Loans Against Property:
Q1FY25 disbursements at Rs 2,245 Crore.
Book size at Rs 19,961 Crore, up 42% YoY.
Growth aided by collaborative launches with prime developers across top locations. Additionally, the launch of LTF's 'The Complete Home Loan' offering across 11 locations drove higher lead generation, thus contributing to improved performance.
SME Finance:
Q1FY25 disbursements at Rs 978 Crore.
Book size at Rs. 4,471 Crore, up 151% YoY.
Growth aided by focus on building additional channels to diversifying existing sourcing funnel.
Sudipta Roy, Managing Director & CEO, LTF, said, “The results you see for the quarter reflect the success of our 5-pillar strategy. The focus is on enhancing customer acquisition through the creation of a robust funnel and contiguous products, sharpening credit underwriting through the deployment of our proprietary digital credit engine ‘Project Cyclops’, building a futuristic digital architecture to drive innovation, increasing brand visibility through amplified share of voice, and capability building through the recruitment and upskilling of tech talent, which is resulting in robust performance.”
“Furthermore, from establishing a distinctive Sonic Brand Identity to launching our ‘The Complete Home Loan’ campaign, LTF is steadfast in its business growth journey. I am confident that the focus on customer-centricity, innovation, and technology will continue to propel us forward as we strive for excellence in the lending space,” he added.
L&T Finance recorded a profit of Rs 685.51 crore for the first quarter of FY25, up 29.1 per cent in comparison to Rs 530.93 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 3,784.40 crore, up 17.4 per cent as against Rs 3,223.32 crore reported during the first quarter of previous fiscal year. The Net Interest Income (NII) came in at Rs 2,020 crore, up 23 per cent in comparison to Rs 1,644 crore last year. The company reported a healthy all-round growth in quarterly retail disbursements at Rs 14,839 crore, up 33 per cent from Rs 11,193 crore during Q1FY24.
L&T Finance’s consolidated order book size came in at Rs 88,717 crore, up 13 per cent against Rs 78,566 crore during Q1FY24.
Tata Consultancy Services (TCS) announced its fiscal first quarter earnings with profit at Rs 12,040 crore, up 9 per cent on-year. It posted revenue from operations at Rs 62,613 crore for the April-June period, up 5.4 per cent on-year. The company’s total contract value (TCV) for Q1FY25 stood at $8.3 billion. The management attributed the drop in TCV to timing issues, and stated that several deal closures are expected to spill over into Q2.
Meanwhile, HCL Technologies reported its Q1FY25 profit at Rs 4,257 crore, up 20.5 per cent from Rs 3,534 crore in Q1FY24. The revenue for the quarter came in at Rs 28,057 crore. HCL Tech retained its YoY revenue guidance for FY25 at 3-5 per cent in constant currency terms and its operating margin around 18-19 per cent.
Bajaj Auto yesterday reported a profit of Rs 1,941.79 crore during the first quarter of FY25, up 18.1 per cent in comparison to Rs 1,644.14 crore during the corresponding quarter of previous fiscal year. Reacting on the performance, Emkay Global said, “Domestic 2W prospects are healthy, though Bajaj Auto’s position has slipped now (also in the 125cc motorcycle); response to newly-launched CNG motorcycle needs to be watched. The management guided for exports recovery to be gradual, and its focus on Triumph is to build brand awareness. Valuations, though, remain expensive. We raise FY26E EPS by ~2.6% (higher margin) and introduce FY27 estimates (13% FY24-27E EPS CAGR).”
With the majors like TCS, HCL Technologies, Avenue Supermarts, Jio Financial Services, HDFC Life Insurance Company, Bank of Maharashtra, SpiceJet, already having posted their quarter results, the Q1 earnings season has started in full swing with many in the likes of Infosys, Havells India, Tata Communications, Wipro, among others to report their Q1FY25 numbers this week.