Q1 Results 2024: With many majors like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Infosys, Jio Financial Services, Nestle India, HUL, Nestle, Adani Wilmar, Reliance Industries, IOCL, HPCL, GAIL India, HDFC Bank, SBI, Axis Bank, SpiceJet, L&T, Paytm, CEAT, DLF, M&M, Tata Motors, MAruti Suzuki, and many others already having released their Q1 results, the first quarter earnings season is now in full swing.
Today, Bharti Airtel, ONGC, Marico, Tata Chemicals, Devyani International, Century Plyboards, Schneider Electric Infrastructure, Orient Cement, V-Mart Retail, Hawkins Cooker, SMS Pharmaceuticals, Monte Carlo Fashions, Triveni Turbine, Tata Chemicals, Honeywell Automation, and many others will report their first quarter results.
This week too will be in focus with market participants and investors keen on the performance of players like Vedanta, TVS Motor Company, Fortis Healthcare, Godrej Consumer Products, Apollo Tyres, Dr Lal PathLabs, BSE Limited, LIC, Eicher Motors, Biocon, MRF, among many others.
Deepak Nitrite Ltd on Monday posted Q1FY25 profit at Rs 202.53 crore, up 35.1 per cent in comparison to Rs 149.90 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 2166.84 crore, up 22.5 per cent as against Rs 1768.34 crore during the same period of FY24. The company EBITDA came in at Rs 309.2 crore, up 47.4 per cent on-year.
Gopal Vittal, MD, said, "Q1FY25 was yet another steady quarter with India revenue growing at 1.9% sequentially and sustained EBITDA margins expansion to 53.7%. Our stringent focus on driving cost efficiencies is reflected in strong operating leverage. Africa continues to deliver strong underlying constant currency revenue growth. India operations added 6.7 Mn smartphone customers and reported an improved ARPU of Rs 211. Our postpaid strategy continues to yield results with 0.8 Mn net adds. During the quarter, we accelerated pace on FWA services expansion across key towns. Our Wifi services (FTTH and FWA) are now available in over 1300 cities. Our digital portfolio is shaping up well and it is geared for accelerated growth to add strength to our already diversified portfolio.
“In the recently concluded spectrum auction, we successfully renewed spectrum that was expiring in 6 circles and further bolstered our sub-giga hertz and mid-band holding in key circles by investing Rs. 6,857 Crores. The industry saw much needed action on tariff repair, which is positive for industry’s financial health amid ongoing large network capex. We continue to believe that industry needs over Rs 300 ARPU at the minimum for financial stability,” he added.
India business:
India revenue was recorded at Rs 29,046 crore, up 10.1 per cent YoY and EBITDA margin remained steady at 53.7 per cnt YoY. EBIT margin was recorded at 22.8 per cent, down 126 bps YoY. The company said that the customer base for the period stood at around 409 million. Capex for the quarter was at Rs 6,781 crore.
Africa business:
Revenue (in constant currency) increased by 19.0 per cent YoY and EBITDA margin (in constant currency) was at 45.3 per cent, down 313 bps YoY. EBIT margin came in at 29.0 per cent. The company said that the customer base stood at 155 million. Capex for the quarter at came in at Rs 1,225 crore.
Telecom major Bharti Airtel on Monday released its fiscal first quarter earnings report with profit at Rs 4159.90 crore, recording a growth of 158.0 per cent in comparison to Rs 1612.50 crore during the corresponding quarter of FY24, surpassing estimates. It posted revenue from operations at Rs 38,506.40 crore, up 2.8 per cent as against Rs 37,440.00 crore during the same period of previous fiscal year. The company EBITDa stood at Rs 19,944 crore.
According to a CNBC TV18 poll, Bharti Airtel was expected to report Q1 profit at Rs 3620 crore and revenue for the period was estimated at Rs 38,500 crore.
BEML Ltd on Monday released its Q1 earnings wherein it recorded a loss of Rs 70.47 crore during the quarter in review. This was 6.1 per cent lower in comparison to Rs 75.01 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 634.08 crore, up 9.9 per cent as against Rs 576.91 crore during the same period of previous financial year.
Brigade Enterprises Q1FY25 Total Income at Rs 1113.44 cr Vs Rs 685.43 cr in Q1FY24
“Divi’s Laboratories’ 1QFY25 revenue/EBITDA broadly in line with our/consensus estimates, led by robust performance in the custom synthesis or CS business (+46% YoY). Generics and neutraceutical businesses were flat YoY. The EBITDA margin stood at 29.4%, 70bp above our estimate, led by better operating leverage. Gross margin declined by 110bp QoQ. In constant currency or CC terms, revenue was up 18% YoY, largely driven by volume. Generic pricing continues to remain weak amid inventory destocking at customers’ end, but Divi’s Laboratories witnessed a 2-5% growth in its large molecules, led by better volume. The company alluded to double-digit revenue growth in FY25F,” stated a report by InCred Equities.
Schneider Electric Infrastructure Ltd on Monday recorded its first quarter earnings for the financial year 2024-25 with profit at Rs 48.48 crore, up 38.8 per cent in comparison to Rs 34.92 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 592.91 crore, up 19.7 per cent as against Rs 495.25 crore during the same period of previous year. The company EBITDA stood at Rs 81.7 crore, up 65 per cent on-year.
Som Distilleries & Breweries Ltd on Monday posted its fiscal first quarter profit at Rs 40.55 crore, up 20.4 per cent in comparison to Rs 33.67 crore recorded during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 1012.71 crore, up 33.5 per cent as against Rs 758.63 crore reported during the first quarter of FY24. “We have reduced our interest costs; our interest costs as a percentage of sales are at 0.53 per cent in Q1FY 2025 as compared to 0.80 per cent reported in the same period last year,” the company said.
Honeywell Automation India Ltd on Monday released its fiscal first quarter earnings. It recorded a profit growth of 32 per cent at Rs 136.50 crore in comparison to Rs 103.40 crore during the same quarter of FY24. The revenue from operations for the quarter came in at Rs 960.40 crore, up 3 per cent as against Rs 932.30 crore during the first quarter of previous fiscal year. The company EBITDA stood at Rs 154.2 crore, up 27.9 per cent YoY.
Paras Defence and Space Technologies Ltd on Monday posted a profit growth of 147.1 per cent during the fiscal first quarter at Rs 14.85 crore in comparison to Rs 6.01 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 83.57 crore, up 73.0 per cent as against Rs 48.32 crore reported during the first quarter of FY24. The company EBITDA stood at Rs 23 crore.
Boman Irani, Chairman and Managing Director, Keystone Realtors Limited, said, “After a robust Performance in FY24, Rustomjee Group continued its impressive performance in Q1FY25, recording PreSales of Rs 611 crore, reflecting a robust 22 per cent year-on-year growth. This growth is a testament to our strategic vision and the unwavering trust of our customers. In this quarter, we launched two new projects with an estimated GDV of Rs 2017 crore, perfectly aligned with our guidance of launching two projects per quarter. Additionally, we added one more project with an estimated GDV of Rs 984 crore, further strengthening our already robust project portfolio across the length and breadth of MMR.”
He further added, “The successful raise of Rs 800 crore equity via QIP will play a pivotal role in driving our growth strategy facilitating the acquisition of new projects and New Launches, thus accelerating growth in pre-sales. With a promising pipeline of launches and our strategic foray into the plotted development in Kasara, we feel that we are at an inflection point to enter an era of high growth.”
Keystone Realtors Ltd on Monday posted its fiscal first quarter earnings with a profit decline of 45 per cent at Rs 25.82 crore in comparison to Rs 46.97 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 422.16 crore, up 55.2 per cent as against Rs 271.96 crore posted during the same quarter of previous financial year. The company EBITDA stood at Rs 43.2 crore, down 33 per cent YoY.
Orient Cement Ltd on Monday posted its fiscal first quarter profit at Rs 36.71 crore, down 0.9 per cent in comparison to Rs 37.03 crore during the same period of previous financial year. It posted revenue from operations at Rs 696.27 crore, posting a growth of, down 15.6 per cent on-year as against Rs 825.18 crore during the first quarter of FY24. The company EBITDA came in at Rs 96.1 crore, down 3.1 per cent YoY.
Saugata Gupta, MD & CEO, Marico, said, “The new fiscal has started on a promising note for both the domestic and international businesses with revenue growth visibly turning a corner. We expect to sustain the improving trajectory in the core domestic business on the back of consistent market share and penetration gains coupled with the ongoing initiatives to revive growth in traditional trade and expand direct reach under Project SETU. We will also maintain a steadfast focus on the profitable scale up of the Foods and Digital-first brands. The international business has been veritably consistent over the last few years and is expected to maintain its double-digit constant currency growth momentum. We will aim to deliver on each of the key performance parameters and drive healthy revenue-led earnings growth in the near and medium term.”
Within the International business, Bangladesh registered 10 per cent CCG (constant currency growth) as the business stayed resilient and sustained its momentum. South-East Asia was flat in CC terms, as the recovery in HPC demand in Vietnam was offset by a weak quarter in Myanmar. MENA delivered 20 per cent CCG with both the Gulf region and Egypt faring well. South Africa registered 28 per cent CCG driven by the ethnic hair care segment. NCD and Exports posted 14% growth.
Meanwhile, EBITDA margin of the International business was at 31.6 per cent, up ~200 bps YoY.
FMCG major Marico Ltd on Monday posted its fiscal first quarter profit at Rs 474 crore, up 8.7 per cent in comparison to Rs 436 crore during the corresponding quarter of previous fiscal year. It recorded revenue from operations at Rs 2643 crore, up 6.7 per cent as against Rs 2477 crore during the same period of FY24, with underlying volume growth of 4 per cent in the domestic business and constant currency growth of 10 per cent in the international business. The company EBITDA stood at Rs 626 crore, up 9.1 per cent on-year.
Mukand Ltd on Monday posted a profit of Rs 24.33 crore for the first quarter of FY25, down 21.4 per cent on-year in comparison to Rs 30.94 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1,257.99 crore, down 9 per cent as against Rs 1,382.29 crore during the same period of previous financial year. The company EBITDA came in at Rs 71 crore, down 8.1 per cent YoY.
VRL Logistics Ltd on Monday posted its fiscal first quarter earnings with a profit decline of 60.4 per cent at Rs 13.44 crore in comparison to Rs 33.95 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 727.21 crore, up 7.9 per cent as against Rs 674.22 crore posted during the first quarter of previous fiscal year. The company EBITDA stood at Rs 87 crore, down 15 per cent on-year.
Ravi Jaipuria, Non-Executive Chairman, Devyani International Limited, said, “We witnessed an improved performance for DIL in Q1, driven by seasonality and cost leverage from better ADS across our businesses. Our Thailand business also demonstrates growth with new store openings and a customer delight strategy. We remain committed to expanding our store footprint and making our brands more accessible to our consumers. As announced earlier, we are on track to achieve a total store count of 2,000 stores within the current financial year. We are also focused on enhancing various institutional businesses, including food courts and airport presence. We are delighted with the positive progress in Q1 and shall continue to be relentless in our plans for the upcoming quarters.”
DIL added 54 net new stores with an aim to reach the consumers in its under-penetrated markets and offering an enhanced customer experience and service. With this addition, DlL’s total store count moves to 1,836 stores as of June 30, 2024. “DIL is on track to meet the target of 2000 stores across its brand portfolio within the current financial year,” the company said.
KFC-operator Devyani International on Monday reported its fiscal first quarter earnings with profit at Rs 30.11 crore, posting a growth of 156.0 per cent in comparison to Rs 11.76 crore reported during the first quarter of FY24. It posted revenue from operations at Rs 1221.90 crore, up 44.3 per cent as against Rs 846.63 crore during the corresponding quarter of previous fiscal year. The company EBITDA stood at Rs 215.8 crore, up 71 per cent on-year.
“Somany Ceramics (SOMC IN) Q1 net sales declined by 1.4% YoY to INR 5.76bn, 3.8% below our estimates, as tiles fell 2.9% in value and 0.9% in volume. This drop was driven by softer domestic demand, made worse by a heatwave and the General Elections. Although there was improvement MoM during Q1 and in July, growth remains below management expectations. SOMC expects volume growth to revive in H2FY25, led by the rebound in the domestic markets on the back of acceleration in the real estate industry. Management expects a double-digit revenue CAGR for the next 3-4 years and ahead of the industry. The bathware segment grew 4.6% YoY in Q1,” a report by Elara Securities said.
Gaurav Jani, Research Analyst, PL Capital - Prabhudas Lilladher, said, “SBI reported a steady quarter as core PPoP beat PLe by 7.2% owing to lower opex, although fees and asset quality were a miss. Credit growth was largely in-line, while deposit growth was soft at 8.2% YoY due to focus on controlling high borrowing cost; strong balance sheet allows deposit accretion to remain muted. Hence, domestic LDR that touched 69% (65% in Q1FY24) can further increase to 70-72%. The bank can achieve 15% loan growth since surplus liquidity is Rs3.7trn and capital can support loan accretion of Rs6-7trn. LCR is strong at 129%, which can absorb the impact of the draft RBI circular. Slippages were higher led by agri (seasonal) and unsecured; however, the bank has recovered a chunk of unsecured loans.”
“Divi’s Laboratories’ Q1FY25 revenue/EBITDA broadly in line with our/consensus estimates, led by robust performance in the custom synthesis or CS business (+46% YoY). Generics and nutraceutical businesses were flat YoY. The EBITDA margin stood at 29.4%, 70bp above our estimate, led by better operating leverage. Gross margin declined by 110bp QoQ. In constant currency or CC terms, revenue was up 18% YoY, largely driven by volume. Generic pricing continues to remain weak amid inventory destocking at customers’ end, but Divi’s Laboratories witnessed a 2-5% growth in its large molecules, led by better volume. The company alluded to double-digit revenue growth in FY25F,” stated a report by InCred Equities.
Titan Company recorded revenue growth from watches at 14% YoY. In analog watches, Fastrack brand reported 25% YoY growth while Titan brand grew 16% YoY and Helios grew 8% YoY. Titan World reported 13% YoY secondary retail revenue growth led by 9% YoY L2L. Wearable segment underperformed: 6% decline in revenue growth. Eyewear business revenue grew 3% YoY. Titan Eye Plus secondary sales reported 7% YoY growth L2L.
“Titan's domestic jewellery business had an abnormally weak quarter (LFL and revenue growth of 3% and 8% YoY respectively) due to external headwinds of steep gold price inflation, lower number of wedding days, election-led restrictions in its core markets while it had a significantly better performance in south (+16% YoY). Customs duty cut is likely to have long-term benefits of accelerating industry formalisation. That said, the current phase appears to have hit an airpocket. Portfolio play (Mia (<5% contribution to domestic jewellery) and Caratlane) in jewellery shall accelerate. Positively, it maintains EBITDA margin guidance of 11.5-12.5%,” stated a report by ICICI Securities.
Amit Anwani, Research Analyst, PL Capital - Prabhudas Lilladher, said, “We revise our FY26E EPS by -6.6% factoring in operational challenges in Industrial Infra leading to lower margins. Thermax (TMX) reported 13.0% YoY revenue growth with EBITDA margin declining by 38bps YoY to 6.5%. Order pipeline remains robust across power, steel, refining & petrochemicals. Industrial Infra faced operational challenges in Bio-CNG and FGD projects, leading to the management adopting a selective approach to order booking. However, large orders are expected to pick up pace. Meanwhile, Industrial Products is poised for double-digit growth driven by solutions for water treatment & air pollution control. Chemical business is on a growth trajectory as supply chain issues ease. In the Green Solutions business, TOESL continues to grow steadily. Although FEPL is expected to remain loss-making this year, it has a strong demand and order pipeline.”
Nomura Holdings estimated Bharti Airtel’s consolidated revenue to grow by 2 per cent sequentially. “We expect Bharti Airtel’s consolidated revenue of Rs 38.40 thousand crore to grow 2 per cent QoQ, and EBITDA of Rs 20.09 thousand crore to grow 4 per cent QoQ, underpinned by a sustained healthy performance for the India businesses and a modest recovery in the Africa business as currency devaluation pressure eased in 1QFY25,” the brokerage firm said.
According to a CNBC TV18 poll, the telecom company is expected to record Q1 profit at Rs 3620 crore and revenue is estimated at Rs 38,500 crore.
A report by Anand Rathi Research Team stated, “With 7% revenue growth (on 5.2% volume growth) and Rs 6.6bn EBITDA, Dabur’s Q1 fell broadly in line with our estimates and the Street’s. The focus on rural distribution (covering 120,000 villages, up from 100,000) helped rural volumes grow ahead of urban. Management is optimistic about further volume growth, aided by distribution expansion, innovations and continued share gains in core categories. We have slightly tweaked our FY25e/26e EPS 2%/1%. The company’s rural salience (~45% revenue) renders it one of the best placed in FMCG to benefit from the rural upturn.”
Key risks, it added, included, failed launches, competition in prices and geopolitical turbulence curbing the international business.