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, ONGC, GAIL India, Bharti Airtel, HDFC Bank, SBI, Axis Bank, Paytm, 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, many others like The Tata Power Company, Vedanta, TVS Motor Company, Cummins India, Bosch, Shree Cements, Lupin, Power Finance Corporation, Gujarat Gas, Fortis Healthcare, Gland Pharma, Blue Star, NCC, Bata India, IIFL Finance, Raymond, Bajaj Electricals, Blue Jet Healthcare, Symphony, VIP Industries, Vadilal Industries, Kaya, and around100 others are to release their quarter results.
This week will be in focus with market participants and investors keen on the performance of players like Godrej Consumer Products, Apollo Tyres, Aditya Birla Fashion & Retail, Dr Lal PathLabs, BSE Limited, LIC, Eicher Motors, Biocon, MRF, among many others.
Gujarat Gas Ltd on Tuesday recorded its fiscal first quarter earnings wherein it posted profit growth of 53.1 per cent to Rs 330.71 crore, in comparison to Rs 215.95 crore reported during the corresponding quarter of FY24. It posted revenue from operations at Rs 4,614.83 crore, up 17.6 per cent as against Rs 3,923.70 crore during the same period of previous financial year. The company reported EBITDA at Rs 574 crore, increased by 39 per cent as compared to Q1FY24.
For the quarter, the company's sales volumes increased by 19 per cent to 10.98 mmscmd from 9.22 mmscmd during the quarter ended on 30th June 2023. The industrial sales volumes increased to 7.25 mmscmd for quarter ended 30th June 2024 from 5.88 mmscmd for quarter ended 30th June 2023, reporting an increase of 23 per cent.
Cummins India said that Ashwath Ram has resigned as the managing director, director and key managerial personnel of the company as he will be assuming a full-time global role with Cummins Inc. USA. Pursuant to this, it said, he will cease from the position from close of business hours on August 31, 2024.
Further, the board, based on recommendation of the Nomination and Remuneration Committee, has approved the appointment of Shveta Arya as an Additional Director and Managing Director (Designate) of the company with effect from August 08, 2024. Further, she will take over as whole-time managing director of the company with effect from September 01, 2024 for a term of three consecutive years, it said.
Cummins India Ltd on Tuesday posted its fiscal first quarter earnings with profit at Rs 462.61 crore, up 30.8 per cent in comparison to Rs 353.72 crore during the corresponding quarter of FY24, beating estimates. It posted revenue from operations at Rs 2315.56 crore, up 4.4 per cent as against Rs 2218.25 crore during the same period of previous fiscal year.
According to a CNBC TV18 poll, Cummins India was expected to report Q1 profit at Rs 424.2 crore and revenue was estimated at 2421.9 crore.
Indigo Paints Ltd on Tuesday recorded a profit decline of 15.5 per cent on-year for the first quarter of current fiscal year at Rs 26.65 crore in comparison to Rs 31.52 crore reported during the corresponding quarter of previous fiscal year. It posted revenue from operations at Rs 310.96 crore, up 7.8 per cent as against Rs 288.42 crore during the first quarter of FY24. The company EBITDA stood at Rs 47.4 crore, down 3.5 per cent on-year.
Linde India Limited on Tuesday recorded its fiscal first quarter profit at Rs 113.69 crore, up 13.8 per cent in comparison to Rs 99.88 crore reported during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 653.23 crore, posting a decline of 9.4 per cent from Rs 721.01 crore recorded during the first quarter of FY24. The company EBITDA stood at Rs 184.1 crore, up 12.3 per cent on-year.
VIP Industries on Tuesday reported profit for the first quarter of FY25 at Rs 4.04 crore, recording a decline of 93.0 per cent in comparison to Rs 57.75 crore during the same period last year. It posted revenue from operations at Rs 638.89 crore, marginally higher than Rs 636.13 crore recorded during the first quarter of previous financial year. The company EBITDA stood at Rs 49.4 crore, down 38.7 per cent on-year.
Blue Star on Tuesday posted its fiscal first quarter profit at Rs 168.76 crore, recording a growth of 102.4 per cent in comparison to Rs 83.37 crore reported during the corresponding quarter of previous fiscal year. It posted revenue from operations at Rs 2,865.37 crore, up 28.7 per cent as against Rs 2,226.00 crore during the same period of FY24. The company EBITDA stood at Rs 237.8 crore, up 64 per cent YoY.
The company also announced that Shekhar Bajaj will take over as the Executive Chairman of the company, effective from October 1, 2024. “Considering the resignation of Mr. Anuj Poddar, Managing Director & Chief Executive Officer, w.e.f. September 30, 2024, the Board of Directors at its Meeting designated Mr. Shekhar Bajaj, Executive Chairman as the Key Managerial Personnel of the Company, effective from October 1, 2024,” it said in a regulatory filing.
Shekhar Bajaj, Chairman, Bajaj Electricals Limited, said, “Revenues for the Company have grown at 3.8% with consumer demand having bottomed-out and green shoots visible in rural demand. Lighting Solutions EBIT margins are at 10.5%, due to improvement in overall gross margins. We continue to maintain strong positive cash flows and focus on our long-term strategic objectives with a continued push on new products and brand strengthening. I am confident that with a pickup in demand during the second half of this fiscal, we shall see a strong upward performance.”
Bajaj Electricals on Tuesday posted its fiscal first quarter profit at Rs 28.11 crore, down 25.1 per cent in comparison to Rs 37.53 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1154.91 crore, up 3.8 per cent as against Rs 1112.13 crore during the same period of previous financial year. The company EBITDA stood at Rs 76 crore, down 1 per cent YoY.
Power Finance Corporation also declared an interim dividend @ 32.50 per cent Rs 3.25 per equity share on the face value of the paid-up equity shares of Rs 10 each for the FY 2024-25. The company announced 30 August as the record date for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend.
Power Finance Corporation Ltd on Tuesday released its fiscal first quarter earnings with consolidated profit growth of 21.1 per cent to Rs 5543.14 crore in comparison to Rs 4576.32 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 24,716.76 crore, up 17.6 per cent as against Rs 21,008.86 crore during the same period of previous financial year.
Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited, said, “We are satisfied with our business performance in Q1 FY25, which underscores the strength and resilience of our business strategy. Our Real Estate business continues to expand its portfolio through the JDA route and we have been appointed as preferred developer in our fourth project outside thane land in Bandra MIG. Additionally, our foray into the Aerospace business, following the acquisition of MPPL, is showing promising signs with its strong performance in the first quarter. During the quarter we have successfully demerged Lifestyle business into a separate company that will be listed in Q2FY25.”
Raymond Limited on Tuesday posted its fiscal first quarter profit at Rs 57.04 crore, up 26.7 per cent in comparison to Rs 45.02 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 937.65 crore, posting a growth of 98.1 per cent as against Rs 473.37 crore during the same quarter of previous financial year. The company EBITDA stood at Rs 101.3 crore.
TVS Motor Company Ltd on Tuesday reported its first quarter earnings for FY25 with profit at Rs 460.88 crore, up 6.1 per cent in comparison to Rs 434.30 crore recorded during the corresponding quarter of previous fiscal year. It posted revenue from operations at Rs 10,406.86 crore, up 14.9 per cent as against Rs 9,055.51 crore during the same period of FY24.
Furthermore, the company said that the overall two-wheeler and three-wheeler sales including exports grew by 14 per cent registering sales of 10.87 lakh units in the quarter ended June 2024 as against 9.53 lakh units registered in the quarter ended June 2023. Motorcycle sales grew by 11 per cent registering 5.14 lakh units in Q1FY25 as against 4.63 lakh units in Q1FY24. Scooter sales for the quarter ended June 2024 grew by 19 per cent at 4.18 lakh units as against 3.50 lakh units during the corresponding quarter of previous year. Three-wheeler sales for the quarter under review is at 0.31 lakh units as against 0.35 Lakh units during first quarter of 2023-24. Electric Scooter sales for the quarter ended June 2024 is at 0.52 lakh units as against 0.39 lakh units in the quarter ended June 2023.
Arun Misra, Executive Director, Vedanta Limited, said “Vedanta has delivered a strong start to the year, with exceptional EBITDA improvement of 47% and PAT improvement by 54% year over year on the back of improved margins, and robust cost reduction across all operations. Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20% year-over-year reduction in overall Cost. Our growth projects are well on track, and we remain committed to commission the majority of these projects in FY25. Moving ahead, our focus on operational efficiency, sustained expansion, and ESG excellence will guide our journey. With this dedication, we are confident in our ability to create substantial shareholder value in the year ahead.”
Vedanta Limited on Tuesday posted its fiscal first quarter profit at Rs 5,095 crore, reporting a growth of 54 per cent in comparison to Rs 3,308 crore recorded during the corresponding quarter of FY24, surpassing estimates. It posted revenue from operations at Rs 35,239 crore, up 5.7 per cent as against Rs 33,342 crore during the first quarter of previous fiscal year. The company EBITDA stood at Rs 9,945 crore.
According to a CNBC TV18 poll, Vedanta was expected to record a Q1 profit of Rs 3,150 crore and revenue for the quarter was estimated at Rs 37,200 crore.
Neeraj Akhoury, Managing Director, Shree Cement Ltd, said, “We continued to optimize our production processes, enhance cost efficiencies and maintain a strong focus on branding initiatives. These efforts enabled us to navigate the challenging market conditions marked by sluggish demand due to general elections and extreme weather, consistently delivering value to our stakeholders.”
He added, "We will continue our focus on increasing our cement manufacturing capacity to gain market share. This, along with our consistent product quality, positions us well to capitalize on the anticipated rebound in cement demand driven by enhanced infrastructure allocation in the Union Budget, rising housing demand and expected growth in the rural sector."
Shree Cement on Tuesday reported its fiscal first quarter earnings with profit at Rs 278.45 crore, down 51.3 per cent in comparison to Rs 571 .94 crore recorded during the corresponding quarter of FY24, missing estimates. It posted revenue from operations at Rs 5123.96 crore, up 1.8 per cent as against Rs 5035.65 crore posted during the same quarter of previous financial year. According to a CNBC TV18 poll, Shree Cement was expected to report Q1 profit at Rs 589 crore and revenue was estimated at Rs 5,029 crore during the quarter in review.
A report by Kotak Institutional Equities stated, “On expected lines, IT services companies delivered a better quarter. The disproportionate stock price reaction to the marginal revenue and earnings beat was unanticipated. We agree with the Street’s ‘bottoming’ out thesis, though we do note that consensus high-single digit revenue growth for large companies and teens for mid-tier names in FY2026E already bake in an improved environment. It is slim pickings from a stock recommendation standpoint—Infosys, TCS and Coforge offer moderate upsides.”
Large IT companies delivered revenues in line with or better than our estimates. The range of revenue growth was wide, with HCL Tech and Wipro reporting declines of 1.6% and 1.0%, respectively, and Infosys, TCS and LTIMindtree reporting solid growth. The BFSI segment did well, with qoq growth ranging from 0.6-7.6%, the report stated. The sub-segments of BFS, viz., capital markets, payments, wealth and cards, were strong. On the other hand, it added, the retail vertical slowed down, a direct result of slowing consumer spending in the US. Mid-tier companies reported mixed performance—Persistent Systems was impressive and Mphasis disappointed once again.
A report by Centrum Broking stated, “Titan’s Q1FY25 print was in line with our estimates; multiple external factors and volatility in gold prices check consol. Revenue/EBITDA growth at 11.5%/10.8%, yet PAT declined by 5.4%. Jewelry division (excluding bullion sales) reported strong growth of 10.4% led by buyer growth of ~2%, though avg. spends per buyer grew by ~6% YoY. Management alluded this to, (1) 45% contribution from new buyer, (2) 20% YoY retail growth during the first 6 weeks of the quarter that included Akshaya Tritiya, and (3) with 17 international stores and Rs.2.6bn revenue grew 90%. Despite better performance in south (+16% LFT), jewelry segment EBIT margin declined to 9.3% (-22bp). W & W segment grew 12.0%, with 10.9% EBIT margin. Eyewear business grew 3.4%, with 9.0% EBIT margin. Emerging businesses grew 5.3% led by F & FA/SKINN +46%/10.0%, while Caratlane saw solid growth of 17.9%. Gross margin lowered to 22.1% (-12bp); EBITDA at Rs12.5bn improved by 10.8% settling EBITDA margin at 9.4% (-6bp) YoY. Titan management remain optimistic and committed to invest in growth initiatives to gain market share, yet maintaining operating margin ~12-13% range.”
A report by JM Financial stated, “Britannia’s June quarter earnings print was a mixed bag – revenue performance was inline while operating performance was c.5% below our forecast. Volume growth in high single digit (with double-digit growth on exit basis) is encouraging; however, impact of price cuts, higher A&P and scale deleverage led to c.5% miss on EBITDA. Going ahead, management reiterated that focus will be on gaining market share, driving volume growth and expects an improving trajectory in coming quarters. On the input costs front, the situation is largely manageable right now. Management expects c.4-5% inflation led by agri-commodities (sugar, flour) in coming months which might entail some price hike. While price corrections are largely done, the carry forward impact will be there which will keep value growth lower than volume growth in near term and same should largely fade away from 3QFY25 onwards. Hence, the pricing element will likely be a bit subdued vs earlier expectations, in our view. With raw material prices inching up & high margin in base, gross margin expansion is unlikely; however, higher subsidy benefit (from facilities in Ranjangaon, UP, Bihar) should provide headroom to invest behind brand as well as sustain EBITDA margins.”
Analysts at InCred Equities said, “Marico’s domestic sales grew by 7 per cent yoy in 1QFY25 with a 4 per cent growth in volume, led by a sequential improvement in rural markets and alternate channels within urban markets. Volume growth in its core portfolio would have been higher, but due to inventory level corrections carried out across general trade channels over the past few quarters, the growth was lower. Parachute rigids registered a 2 per cent volume growth (+8 per cent ex-inventory corrections in GT) with volume market share of its coconut oil portfolio (including flanker brands) reaching the highest-ever level at 64 per cent (on MAT basis). VAHO declined 5 per cent in value terms due to continued sluggishness at the bottom of the pyramid and downtrading. Corrective actions have been set in place to revive growth led by project SETU, which led to a 3 per cent offtake growth. Saffola edible oils posted mid-single digit volume growth however sales declined 1 per cent yoy due to the last leg of price corrections not factoring in the base, which is expected to normalize from next quarter, after which the gap between revenue and volume growth will narrow. The food portfolio continued its strong momentum, growing 37 per cent yoy, led by a 20 per cent growth in Saffola Oats as well as improvement in recent launches.”
Oil and Natural Gas Corporation Ltd (ONGC) released its fiscal first quarter earnings with a profit decline of 32.1 per cent to Rs 9,936.45 crore in comparison to Rs 14,644.43 crore posted during the first quarter of previous fiscal year. It recorded revenue from operations at Rs 166,576.75 crore, up 1.7 per cent as against Rs 163,823.59 crore during the same period of FY24.
ONGC recorded total crude oil production at 5.237 MMT, total gas production at 5.008 BCM, and value added products at 638 KT during the quarter in review.
Arun Krishnamurthi, CEO & MD, Axiscades, said, “We are pleased to report a strong start to FY25, highlighted by noteworthy business performance in Q1FY25, in the face of macro challenges in certain verticals and lumpiness in Defence. The Company’s YOY revenue grew by 4.5 per cent to Rs 223 crore with EBITDA of Rs 31 crore and PAT of Rs 17 crore. The revenue growth was driven by a 15 per cent YoY increase in Engineering Services, led by Aerospace, Automotive, and Energy Verticals. Defence production revenues grew 73 per cent YOY, with a strong order book for execution in FY25. Overall, the company performed well in Q1, across most verticals, with the exception of Heavy Engineering and PES, where macroeconomic challenges persist. We are focused on overcoming the challenges in certain verticals and are confident of delivering to our company’s plan for the full year FY25 and will continue to strengthen the business for sustainable growth and profitability.”
Axiscades Technologies Ltd on Tuesday recorded its fiscal first quarter earnings with profit at Rs 17.07 crore, up 204.3 per cent in comparison to Rs 5.61 crore reported during the corresponding quarter of FY24. It posted revenue from operations at Rs 223.26 crore, up 4.5 per cent as against Rs 213.64 crore during the same period of previous financial year. The company EBITDA stood at Rs 31.3 crore, down 6 per cent YoY.
Amnish Aggarwal, Director- Research, PL Capital - Prabhudas Lilladher, said, “Marico reported inline numbers with surprise on GM led by benign input costs & favorable portfolio mix. However we downgrade stock to Hold from Accumulate given 1) Peaked out margin with no major expansion expected in near term 2) Persistent sluggishness in Parachute/Saffola/VAHO (72% of domestic sales) 3) Growth concerns in Bangladesh given recent turmoil and unrest. Innovation funnel remains strong with portfolio diversification and scale up in Foods, D2C portfolio & B2C acquisitions. Beardo is likely to end FY25 with double-digit EBITDA margins, Marico plans to adopt the same strategy for scaling Digital-first franchises and targets double-digit margins by FY27. We factor in 11.7% sales growth & 10.4% PAT CAGR over FY24-26.”
Akriti Mehrotra, Research Analyst, StoxBox, said, “Despite being impacted by the devaluation of the African currency, Bharti Airtel posted steady growth in Q1FY25. The company improved ARPU to Rs 211, the highest in the industry, due to upgrading customer plans, a better mix, and adding high-value customers. India's revenues grew healthily, driven by higher realizations and strong 4G/5G customer additions. Effective cost management led to an EBITDA margin expansion to 53.7%.”
“In India, Bharti Airtel added 6.7 million smartphone customers and saw success in its postpaid strategy, resulting in 0.8 million net additions. The expansion of Fixed Wireless Access (FWA) services accelerated, with WiFi services now available in over 1,300 cities. Bharti Airtel's digital portfolio is positioned for accelerated growth, and the company renewed expiring spectrum in six circles, investing Rs. 6,857 crores to strengthen its spectrum holdings. The recent industry-wide tariff adjustments are seen as a positive step for financial health amidst significant network capital expenditures. Bharti Airtel continues to advocate for a minimum ARPU of Rs. 300 for industry stability. Key monitorables include progress on 5G adoption, capex trajectory, prepaid to postpaid conversion trends, and traction in home broadband,” she added.
Today, majors including The Tata Power Company, Vedanta, TVS Motor Company, Cummins India, Bosch, Shree Cements, Lupin, Power Finance Corporation, Gujarat Gas, Fortis Healthcare, Gland Pharma, Blue Star, NCC, Bata India, IIFL Finance, Raymond, Bajaj Electricals, Blue Jet Healthcare, Symphony, VIP Industries, Vadilal Industries, Kaya, and around 100 others will release their quarter results.
With many majors like TCS, HCL Technologies, Infosys, Wipro, Tech Mahindra, Infosys, Nestle India, HUL, Adani Wilmar, Reliance Industries, 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 and today many others are in beeline to announce Q1 results. And we, at FinancialExpress.com, will keep bringing in all the updates on the performance by companies and will keep analysing these numbers as well. Stay tuned.