With a number of listed companies like Tata Consultancy Services (TCS), HCL Technologies, Avenue Supermarts, Jio Financial Services, Bank of Maharashtra, SpiceJet, Asian Paints, LTIMindtree, Infosys, Tata Technologies, CEAT and others already having released their quarter results, the Q1 earnings season is in full swing now.
Today, Wipro, JSW Steel, Bharat Petroleum Corporation, JSW Energy, Union Bank of India, ICICI Lombard General Insurance Company, Indian Hotels Company, Patanjali Foods, Oberoi Realty, One 97 Communications Paytm, Blue Dart Express, PVR INOX, Jubilant Pharmova, among many others will report their first quarter results.
This weekend too will have some of the major companies announcing their Q1 numbers. Saturday in particular will be a banking sector heavy day with the likes of HDFC Bank, Kotak Mahindra Bank, YES Bank, RBL Bank, slated to announce their Q1 earnings. Others including JK Cement, Kirloskar Pneumatic Company, Zenith Healthcare, Shakti Pumps (India), Netweb Technologies India, Poonawalla Fincorp, and others too will release their quarter figures.
Biswajit Maity, Sr Principal Analyst, Gartner, says, “In Q1, Wipro’s revenue saw a slight decline compared to the previous year. We are optimistic about their positive growth in the coming quarters. Wipro boasts high customer satisfaction ratings from the majority of its clients and has significantly invested in enhancing its consulting and industry expertise.”
He further added, “Wipro is concentrating on five strategic priorities: driving large deal momentum, strengthening client relationships, leveraging AI, enhancing skills, and streamlining their operational model to adapt to technological and market changes. They are positioning themselves as key partners in implementing Gen AI solutions to accelerate digital transformation for clients, which will positively impact their financial outcomes.”
Despite some regional revenue challenges due to slower demand and other macroeconomic challenges, he said, “Wipro is focusing on high-value transformation projects and phasing out low-margin accounts, resulting in improved margins. They aim to build large deal momentum by being proactive with clients and partners, seeing consulting as a significant strategic advantage. Their pipeline is strong, including numerous mega deals, and they remain focused on maintaining and increasing their large deal successes.”
JSW Steel board also approved the transfer of Slurry Pipe Line undertaking of JSW Utkal Steel Limited, a wholly owned subsidiary of JSW Steel Limited for the transportation of iron ore from Nuagaon mines to Jagatsinghpur in the State of Odisha. The total consideration of the project is approximately Rs 1,700 crore. The company said that the slurry pipeline project would be transferred at a consideration which would be aggregate of (1) the fair value of the cost incurred till 31 May 2024 as determined by an independent valuer; and (2) the cost incurred post 31 May 2024 till the actual date of transfer. The transfer will be completed in around 6 months.
Consolidated crude steel production during the quarter was at 6.35 million tonnes, down 1% YoY. Capacity utilization at India operations was 87% during Q1 due to the planned maintenance shutdowns at Dolvi and BPSL. Steel sales for the quarter stood at 6.12 million tonnes, up 7% YoY. Domestic sales was at 5.31 million tonnes, up 14% YoY. Sales volume of the OEM and industrial segment increased by 18% and the retail segment grew by 8% YoY. Exports dropped by 29% YoY and constituted 10% of sales from the India operations for Q1.
JSW Steel on Friday recorded its fiscal first quarter profit at Rs 867 crore, down 64.3 per cent in comparison to Rs 2428 crore reported during the first quarter of FY24. It posted revenue from operations at Rs 42,943 crore, up 1.7 per cent as against Rs 42,213 crore during the same period last year. The company EBITDA stood at Rs 5510 crore.
Aparna Iyer, Chief Financial Officer, said, “We continued to expand our margins to 16.5% in Q1FY25, this is a 42-bps improvement YoY. Our margin performance is also reflected in our EPS increase of 10% YoY. Our operating cash flows continue to be strong at 131.6% of our net income which takes our current investment and cash balance to $5.4 billion.”
Srini Pallia, CEO and Managing Director, said “We recorded another quarter of total large deal bookings over $1 bn, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and preparing our workforce for an AI-first future.”
IT major Wipro on Friday reported fiscal first quarter profit at Rs 3036.60 crore, up 5.2 per cent in comparison to Rs 2886.00 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 21,963.80 crore, down 3.8 per cent as against Rs 22,831.00 crore reported during the first quarter of previous year. The company posted large deal bookings at $1.2 billion.
“We expect revenue from our IT Services business segment to be in the range of $2,600 million to $2,652 million. This translates to sequential guidance of (-)1.0% to +1.0% in constant currency terms,” the company said in a regulatory filing.
Bharat Petroleum Corporation Ltd (BPCL) on Friday reported its fiscal first quarter profit at Rs 2,841.55 crore, down 73.3 per cent in comparison to Rs 10,644.30 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 1,28,106.39 crore, marginally lower than Rs 1,28,263.56 crore reported during the first quarter of previous financial year.
Balfour Manuel, Managing Director, Blue Dart Express, said, “Our position as a leading logistics provider is a result of our commitment to operational efficiency and customer-centric solutions. We are optimistic about the growth opportunities that align with the country’s development. By expanding our network, leveraging technology, and enhancing service capabilities, we are well-positioned to seize emerging opportunities and deliver exceptional value to our customers and stakeholders.”
Blue Dart Express on Friday reported its fiscal first quarter profit at Rs 53.42 crore, down 12.8 per cent in comparison to Rs 61.28 crore during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 1342.71 crore, up 8.5 per cent as against Rs 1237.55 crore during the first quarter of FY24. The company EBITDA stood at Rs 202.2 crore, up 5.8 per cent on-year.
Radiopharma: Rs 832.10 crore
Allergy Immunotherapy: Rs 178.20 crore
Contract Development and Manufacturing Organisation- Sterile Injectables: Rs 334.10 crore
Generics: Rs 155.60 crore
Contract Research, Development and Manufacturing Organisation: Rs 249.30 crore
Jubilant Draximage Inc., a subsidiary of the company’s wholly owned subsidiary Jubilant Pharma Limited, announced an investment of USD 50 million to expand its PET radiopharmacy network by adding six (6) PET radiopharmacies in strategic locations throughout the United States. “This investment shall position the company in the growing PET Imaging segment and shall also enable it to secure long term contracts with the leading PET radiopharmaceutical manufacturers. The new PET radiopharmacies shall be fully operational in FY28,” it said in a statement.
Jubilant Pharmova Ltd on Friday reported its fiscal first quarter earnings with a multi-fold profit jump at Rs 481.80 crore as against Rs 6 crore recorded during the corresponding quarter of previous fiscal year. It posted revenue from operations at Rs 1731.70 crore, up 9.1 per cent as against Rs 1586.90 crore during the same period last year. The company EBITDA stood at Rs 251.5 crore, up 48.3 per cent on-year.
Aether Industries Ltd on Friday reported its fiscal first quarter profit at Rs 29.93 crore, marginally higher than Rs 29.81 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 180.02 crore, up 11.7 per cent as against Rs 161.11 crore during the first quarter of FY24. The company EBITDA came in at Rs 43.1 crore, down 3.6 per cent on-year.
Fedbank Financial Services Ltd posted its fiscal first quarter profit at Rs 70.23 crore, up 3.8 per cent in comparison to Rs 67.66 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 477.31 crore, up 17.1 per cent as against Rs 407.58 crore during the same period last year. The NII stood at Rs 250 crore, up 18.5 per cent on-year as against Rs 211 crore during Q1FY24.
Paytm said that it has seen a strong product-market fit for distribution of its shop insurance offerings by leveraging merchant insights. On the consumer side, it has seen good traction with embedded and DIY insurance products such as motor insurance. On the health insurance front, it is offering differentiated products that combine Health Insurance, Health-care, and OPD benefits and has also launched protection plans for merchant partners. It will also look to enhance credit distribution by diversifying lending products and partners and expand secured lending products.
Paytm emphasised that it remains committed to managing its overall cost structure. The company has achieved 9 per cent reduction quarter-on-quarter in employee costs, as part of its goal to save Rs 400-500 crore annually.
Paytm highlighted that its total monthly transacting user base has stabilised at approximately 7.8 crore by the end of June, highlighting strong user affinity for Paytm’s platform and retention. Paytm further added that it is awaiting permissions to onboard new UPI consumers, which will result in further growth of its MTU base.
Paytm spokesperson said, “We are seeing a rebound in our merchant operating metrics and stability in our consumer base, demonstrating our path to recovery. This also indicates the continued confidence of our merchant partners and consumers on our platform, and we are grateful for the trust of our stakeholders. With Q1 illustrating the full impact of recent disruptions, we are confident in our trajectory towards sustained growth going forward.”
In a statement, Paytm said that the company continues to have a strong balance sheet with Rs 8,108 crore of cash on books. It also holds stock acquisition rights in PayPay Corporation (5.4% stake, once exercised).
1. Payments Services:
Revenue from Payment services was at Rs 900 crore
Net payment margin was at Rs 383 crore, GMV of Rs 4.3 lakh crore
Merchant subscriber base for devices reached 1.09 crore as of June 2024
2. Financial Services:
Revenue from financial services was at Rs 280 crore
3. Marketing Services:
Revenue from marketing services was at Rs 321 crore
One 97 Communications, parent company of fintech major Paytm, on Friday posted its fiscal first quarter earnings with a widened loss of Rs 840.10 crore in comparison to a loss of Rs 358.40 crore posted during the corresponding quarter of FY24. It posted revenue from operations at Rs 1501.60 crore, down 35.9 per cent as against Rs 2341.60 crore recorded during the first quarter of previous fiscal year.
Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd said, “As we start a new financial year, we are happy to close another robust performance quarter in terms of revenues and profits. The quarter registered 25% revenue growth driven by strong business across all regions. We had good additions in our client portfolio and added 13 new logos in Q1. New business from our existing customer base also contributed significantly to our revenue growth reaffirming our deep and long-term customer relationships and ability to deliver value to our customers.”
“Our solutions in trade, lending, and supply chain finance have been getting good traction and market acceptance, helping businesses grow and manage their operations more efficiently. During the quarter, we also launched our new product named – Newgen LumYn, a Gen AI-powered hyper-personalization platform designed specifically for the banking sector,” he added.
Newgen Software posted its fiscal first quarter profit at Rs 48 crore, up 58 per cent on-year in comparison to Rs 30 crore recorded during the first quarter of FY24. It posted revenue from operations at Rs 315 crore, up 25 per cent as against Rs 252 crore recorded during the corresponding quarter of previous fiscal year.
Infosys raised its revenue growth guidance for the financial year 2024-25 on July 18, with the metric being raised in the range of 3 per cent to 4 per cent. Net profit increased by 7.1 per cent on-year to Rs 6,368 crore. It posted consolidated revenue from operations for the April-June quarter at Rs 39,315 crore, up 3.6 per cent on-year.
Pritesh Thakkar, Research Analyst, Prabhudas Lilladher Pvt Ltd, said, “The deal win at US$4.1 bn was soft vs last quarter, however the pipeline remains healthy on the large deals. The strong rebound in Q1 and in-tech integration in Q2 has led to revise the guidance upward to 3-4% in CC (vs 1-3% CC organic earlier). The revenue growth was encouraging in Q1 with a sharp recovery in Fin Services (FS), predominantly driven by a couple of sub-verticals. Other verticals also contributed to the healthy growth in Q1, however the quantum of growth looks dwarf against the growth within FS. Although Q1 recorded 34 large deal wins with sustained deal TCV, the net headcount addition declined further for the sixth-straight quarter by 1.9k QoQ.”
“We are baking in the guidance revision and strong Q1 beat, expect revenue growth of 3.7% CC and 7.5% CC in FY25E and FY26E. The margin recovery was encouraging with 100bps QoQ improvement, majorly led by comprehensive margin expansion program (Project Maximus), while partly aided by Q4 reversal and one-offs,” he added.
With the majors like TCS, HCL Technologies, Avenue Supermarts, Jio Financial Services, SpiceJet, Asian Paints, LTIMindtree, Infosys, Tata Technologies, CEAT, already having posted their quarter results, the quarter earnings season has started in full swing. Today, many others in the likes of Wipro, Reliance Industries, JSW Steel, Bharat Petroleum Corporation, JSW Energy, Union Bank of India, ICICI Lombard General Insurance Company, Patanjali Foods, Oberoi Realty, One 97 Communications Paytm, Blue Dart Express, PVR INOX, among many others will report their first quarter results.