Q2 Earnings 2024 Highlights: While the majority of companies across sectors have already released their quarterly reports for Q2FY25, investors and market participants are keenly waiting for others to announce their Q2 numbers. Firms including Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Bharti Airtel, HUL, ITC, Marico, Dabur India, Adani Wilmar, Nestle India, BHEL, L&T, Adani Enterprises, Mankind Pharma, Dr Reddy’s Laboratories, GAIL, Punjab National Bank, Axis Bank, HDFC Bank, IRCTC, Bata India, Coal India, TVS Motor, Havells India, Paytm, Zomato, PVR Inox, Bajaj Auto, Piramal Pharma, among many others have announced their Q2 reports.
Today, companies like Apollo Hospitals Enterprises, Jindal Steel & Power, Blue Star, Gujarat Gas, Kansai Nerolac Paints, Trident, Sonata Software, Granules India, KPI Green Energy, JK Lakshmi Cement, Dhanuka Agritech, Kirloskar Ferrous Industries, Pricol, TeamLease Services, Avalon Technologies, Spencer Retail, among others are queued up to release their Q2 earnings report.
Till date, the corporate earnings scorecard for Q2FY25 has been weak but excluding commodities, it’s broadly in-line. A report by Motilal Oswal Financial Services (MOFSL) stated, “The earnings spread has deteriorated, with only 62 per cent of MOFSL Coverage Universe either meeting or exceeding profit expectations. Consumption has emerged as a weak spot while select segments of BFSI are seeing asset-quality stress. Nifty FY25 EPS has seen another 1 per cent cut after a 4 per cent cut in preview. Overall Nifty EPS has seen 7 per cent downward revision in the last six months, reducing the expected FY25 earnings growth to just 5 per cent, weakest since FY20.”
The company board also declared payment of the first interim dividend of Rs 4.50 per equity share of Rs 10 each (@ 45 per cent of the paid-up equity share capital) for the Financial Year 2024-25. The first interim dividend will be paid to the members on Wednesday, 04th December, 2024. Further, the record date for the purpose of payment of dividend shall be Thursday, 14th November, 2024.
Power Grid Corporation Of India Ltd on Wednesday reported its fiscal second quarter earnings with profit at Rs 3,793.02 crore, marginally higher than Rs 3,781.42 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 11,277.76 crore, staying flat as Rs 11,267.07 crore recorded during the same period of previous financial year. The company EBITDA stood at Rs 9,701.3 crore, down 2.1 per cent on-year.
Vir S Advani, Chairman & Managing Director, Blue Star Limited, said, “The overall prospects for all our businesses continue to look promising. Room Air conditioners and Commercial Air conditioning businesses are doing well, both in terms of revenue and profit. The Commercial Refrigeration business faced setbacks in the first half of the year due to regulatory changes and we expect this impact to be temporary. The Company’s investments in R&D, manufacturing, and digitalisation will provide a stable foundation for achieving both our short-term and long-term goals. We expect FY25 to be another milestone year for the Company and remain optimistic for the balance half of the year.”
Revenue from the Electro-Mechanical Projects and Commercial Air Conditioning Systems & Services segment grew by 32.6% to Rs 1428.42 crore during the quarter as compared to Rs 1077.21 crore in the same quarter of the previous year. The Segment result grew significantly to Rs 119.21 crores (8.3% of revenue). Scale economies, better profile mix as well as cost reengineering contributed to a 220 bps improvement in segment margins.
Unitary Products revenue grew by 5.1% to Rs 767.00 crore in Q2FY25 compared to Rs 729.49 crore in Q2FY24. Though this is typically a lean quarter for this segment, the demand for room air conditioners remained strong and the company recorded healthy growth and maintained its market share through a comprehensive product portfolio and enhanced distribution network, it said. The segment result for the quarter was at Rs 53.92 crore (7.0% of revenue) in Q2FY25.
The Professional Electronics and Industrial Systems segment revenue marginally declined to Rs 80.54 crore in the quarter compared to Rs 83.70 crore in Q2FY24. The segment reported profit of Rs 5.17 crore in Q2FY25 (6.4% of revenue) as compared to Rs 12.23 crore (14.6% of revenue) in Q2FY24.
Blue Star Ltd on Wednesday recorded a profit growth of 35.7 per cent during the fiscal second quarter at Rs 96.06 crore in comparison to Rs 70.77 crore during the same period of previous financial year. It posted revenue from operations at Rs 2,275.96 crore, up 20.4 per cent as against Rs 1,890.40 crore during the corresponding quarter of FY24. The tax expense for the quarter was Rs 35.04 crore compared to Rs 24.26 crore in Q2FY24.
Blue Star’s carried-forward order book as of September 30, 2024, grew to Rs 6598.20 crore, as compared to Rs 6008.52 crore as of September 30, 2023, posting a growth of 9.8 per cent
The company ended the quarter with a net cash position of Rs 185.26 crore as compared to a net cash position of Rs 285.85 crore as of September 30, 2023.
Healthcare Services (Hospitals)
The healthcare services division recorded a consolidated revenue at Rs 2903.20 crore, up 14 per cent YoY. EBITDA (Post Ind AS 116) was at Rs 722.00 crore in Q2FY25 compared to Rs 634.40 crore in Q2FY24. EBITDA was higher by 14 per cent YoY. As on September 30, 2024, Apollo Hospitals had 7,994 operating beds across the network (excluding AHLL & managed beds). The overall occupancy for hospitals was at 73 per cent vs 68 per cent in the same period in the previous year, aided by a strong increase in patient flows across hospitals.
Apollo Health and Lifestyle Limited (AHLL)
AHLL gross revenue at Rs 403.90 crore, posting a growth of 14 per cent YoY. While the diagnostics revenue stood at Rs 134.50 crore, Spectra revenue came in at Rs 71.10 crore.
Apollo HealthCo
The company reported offline pharmacy distribution revenue at Rs 2014.40 crore in Q2FY25 while revenues from digital platform were at Rs 267.80 crore. Overall Health Co revenues for the period stood at Rs 2282.20 crore, up 17 per cent YoY. During the quarter in review, 154 net new stores were opened, taking the total number to 6,228 stores. GMV of Apollo 24/7 came in at Rs 756.90 crore in Q2FY25, up 2 per cent over Q2FY24.
“At Apollo Hospitals, we are dedicated to continually evolving to meet the changing healthcare needs of our nation. Through strategic initiatives like our investment in Apollo Health and Lifestyle and the launch of new multi-specialty hospitals, we reaffirm our commitment to expanding access to high-quality healthcare across India, particularly in regions where critical care access is essential.
One of our proudest achievements is our recent partnership with the Government of Tripura to provide free heart surgeries for children, underscoring our belief that healthcare should reach those who need it most, especially in underserved communities. Beyond expanding access, we are advancing medical technology with innovative treatments like water vapor thermotherapy for prostate care and robotic radiosurgery systems for cancer.
We’re also investing in the future of healthcare with the launch of our new research academy, which is focused on driving groundbreaking medical discoveries that will shape the next generation of treatments.
The first half of FY25 has been an exciting time for us, marked by these major milestones aimed at extending the reach and impact of our healthcare services. Moving forward, our mission is simple: to push the boundaries of healthcare and ensure that everyone, regardless of where they live, has access to the best medical services. This is our promise, and we are committed to making it a reality.”
Apollo Hospitals Enterprise Ltd on Wednesday released its fiscal second quarter earnings with profit at Rs 395.70 crore, registering a growth of 59.0 per cent in comparison to Rs 248.80 crore during the same period of previous financial year, beating estimates. It posted revenue from operations at Rs 5589.30 crore, up 15.3 per cent as against Rs 4846.90 crore during the corresponding quarter of FY24. The company EBITDA stood at Rs 815.5 crore, up 30 per cent on-year.
According to a CNBC TV18 poll, Apollo Hospitals was expected to report Q2 profit at Rs 360 crore and revenue for the quarter in review was estimated at Rs 5561 crore.
InCred Equities said, “Gland Pharma’s (GPL) Q2FY25 base business (ex-Cenexi) revenue/EBITDA saw healthy QoQ growth (5%/24%), which was 22% above our estimate/in line with the Bloomberg consensus estimate, respectively. Cenexi’s revenue was in line with our expectation, with revenue at Rs 3.4bn and EBITDA loss at Rs 685m. Excluding Cenexi, GPL witnessed a strong sequential growth in India, RoW and other core markets. The US business declined by 2% QoQ, despite a healthy volume growth of 5% YoY/QoQ from new product launches. Cenexi is expected to close FY25F with an EUR160-165m topline and EBITDA break-even by Q4FY25F.”
Trident announced the appointment of Avneesh Barua as Chief Financial Officer and Key Managerial Person (CFO & KMP) of the company with effect from November 06, 2024. Avneesh Barua is qualified Chartered Accountant with more than 11 years of experience in managing functions such as Finance and Accounts, Direct & Indirect Taxation, Treasury Operations, Project Financing, Working Capital and Fund Management, Financial Planning and Analysis, Costing and Budgeting, Business Finance and Strategies.
Trident Ltd on Wednesday reported its fiscal second quarter earnings with profit at Rs 83.32 crore, registering a drop of 7.7 per cent on-year, in comparison to Rs 90.31 crore during the same period of previous financial year. It posted revenue from operations at Rs 1712.94 crore, down 4.7 per cent as against Rs 1797.52 crore during the same period of previous financial year. The company EBITDA stood at Rs 226.2 crore, down 5.8 per cent on-year.
The company declared its second interim dividend for the financial year 2024-25 at the rate of Rs 1.75 per share (17.50 per cent of paid-up share capital) of the company. Further, the record date set for the purpose of payment of second interim dividend for Financial Year 2024-25 is Friday, 15th November, 2024.
RITES Ltd on Wednesday reported a profit decline of 25.1 per cent during the fiscal second quarter to Rs 82.50 crore in comparison to Rs 110.17 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 540.86 crore, down 7.1 per cent as against Rs 582.36 crore during the same period of previous financial year. The company EBITDA stood at Rs 106.4 crore, down 23 per cent YoY.
KPI Green Energy Ltd on Wednesday reported a profit growth of 100.9 per cent for the fiscal second quarter at Rs 69.83 crore in comparison to Rs 34.75 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 361.41 crore, up 67.4 per cent as against Rs 215.95 crore during the same period of previous fiscal year.
The company board also declared an interim dividend at 4 per cent i.e. Re 0.20 per equity share having face value of Rs 5 each, on the equity share capital of the company for the financial year 2024-25. The record date for payment of this interim dividend is November 14, 2024.
Dr Krishna Prasad Chigurupati, Chairman & Managing Director, Granules India Limited, said, “Q2 sales were impacted by a voluntary pause in manufacturing and distribution from our Gagillapur facility. We delivered strong margins, supported by profitable formulations sales and a favourable product mix. Our operations also generated a healthy cash from operations of Rs. 2,007 million.”
Granules India Ltd on Wednesday reported its fiscal second quarter earnings with profit at Rs 97.23 crore, down 4.8 per cent in comparison to Rs 102.12 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 966.62 crore, registering a decline of 18.7 per cent as against Rs 1189.49 crore during the second quarter of previous financial year. The company EBITDA stood at Rs 203 crore, down 4.8 per cent on-year.
Granules India said that the Finished dosages (FD), Active Pharmaceuticals Ingredients (API) and Pharmaceutical Formulation Intermediates (PFI) contributed 77 per cent, 15 per cent, and 8 per cent of revenue from operations respectively for Q2FY25.
The company board also approved the 100 per cent acquisition of Hi-tech Global Steels Private Limited to further expand its business operations. The acquisition will be completed within 90 days, it said.
Hi-Tech Pipes Ltd on Wednesday posted a profit of Rs 18.11 crore for the fiscal second quarter, registering a growth of 72.0 per cent in comparison to Rs 10.53 crore during the same period of previous financial year. It recorded revenue from operations at Rs 705.90 crore, down 5.4 per cent as against Rs 746.00 crore during the second quarter of FY24. The company EBITDA stood at Rs 42.2 crore, down 1.2 per cent on-year.
Sunil Kataria, Managing Director of Raymond Lifestyle Limited, said, “Raymond Lifestyle Limited had a stable quarterly performance amidst subdued demand, weaker consumer sentiment and higher inflationary pressures. Our continued focus on retail expansion led to reaching 1,592 stores including 129 stores in Ethnix by Raymond. We have launched Sleepz and are getting good responses from trade channels. Recent buoyancy has been witnessed at the start of a festive & wedding season. Going forward, we are strategically positioned to capture demand through our retail expansion plans, new product launches and marketing campaigns.”
Raymond Lifestyle Ltd released its fiscal second quarter earnings report with profit at Rs 42.18 crore, posting a decline of 69.7 per cent in comparison to Rs 139.33 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1708.26 crore, down 5.3 per cent as against Rs 1803.38 crore during the same period of previous financial year.
Raymond Lifestyle was listed separately as a pure play lifestyle business on 5th September 2024.
A report by Elara Securities stated, “Despite Q2 falling short of our expectations, Berger Paints gained market share, and the trend should continue due to its new go-to-market strategies in urban areas (likely to focus on exterior paint where it has the right to win) and improved demand in rural markets. We upgrade Berger Paints to Accumulate from Reduce as we believe it has the whitespace to gain market share and offset any market share loss from entry of new players. Key risk to our recommendation is sustained slowdown in the paint industry and significant increase in competitive intensity.”
Elara Securities said, “SJVN (SJVN IN) reported robust Q2FY25, with 17% YoY and 18% QoQ revenue growth to Rs 10bn, driven by a 12% YoY increase in generation to 4,729MU. Hydro generation rose by 9.7% YoY and solar generation to 132MU from 38MU last year, though wind generation dropped 13%. Incentive income grew 36% YoY to Rs 800mn and EBITDA rose 17% YoY and 24% QoQ to Rs 8bn. However, interest costs spiked 60% YoY to Rs 2bn, largely due to the Nitwar Mori plant. PAT remained flat at Rs 4bn. SJVN pared its FY25 capacity addition target to 1,800MW. It also plans major capacity expansions in FY26 and FY27, including its first pump storage project in Mizoram. We upgrade SJVN to Buy from Accumulate with TP reduced to Rs 137 on 2.5x FY27E P/B regulated equity.”
The company board announced the appointment of Clint Carmichael as Chief Operating Officer for a period of 3 years from 1st December 2024. Clint Carmichael is part of the senior management of the company. A South African national, Clint Carmichael is currently working as Chief Operating Officer at Suez Canal Automotive Terminal in Egypt. He has over 28 years of experience in the global shipping and logistics sector and brings a diverse skill set encompassing ships agency, liner, bulk, break-bulk, RoRo, automotive logistics, documentation, operations, and sales/marketing. With extensive experience in both Indian and African markets, Clint Carmichael offers a unique perspective on the challenges and opportunities in developing countries, it said in a statement.
The company declared an interim dividend of Rs 4 per share for the financial year 2024-25 subject to applicable taxes. It said that the record date to determine the members eligible for receiving the dividend amount will be 19th November 2024. The dividend amount is likely to be paid to the eligible members by 3rd December 2024, it added.
Gujarat Pipavav Port Ltd on Wednesday said that the company recorded a profit of Rs 75.49 crore during the second quarter of FY25, registering a decline of 18.2 per cent in comparison to Rs 92.28 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 227.04 crore, down 10.1 per cent as against Rs 252.61 crore during the same period of previous financial year. The company EBITDA stood at Rs 132.5 crore, down 12.4 per cent on-year.
JM Financial report stated, “DRRD delivered a strong performance with Revenue/EBITDA/PAT growing 17%/11%/-8% YoY ahead of JMFe and street expectations. US business (8% beat) was led by gRevlimid ramp-up, albeit softer QoQ, was the primary driver. Complex launches and biosimilars will sustain momentum in this business over the medium term. NRT acquisition will reflect from 3Q further improving core margins. India business (in line) improvement was visible with around 9-10% ex-vaccines growth, with management confident of sustaining above market growth. Emerging markets (16% beat) was a star performer this quarter with Russia delivering 27% CC growth (sustainable per mgmt. commentary). The company remains upbeat on the GLP-1 opportunity and believes backward integration is DRRD’s strength. R&D spends were higher at 9.1% (full year guidance at 8.5-9%) with 36% spends concentrated on biologics/Aurigene and balance on generics/API. Higher S,G&A spends mirror growth in ex-US markets scale-up and excluding one-offs, is largely sustainable going ahead. Robust double digit growth across key markets, healthy but unappreciated US (and global) pipeline, NRT consolidation and attractive valuations lead to our positive stance.”
InCred Equities report stated, “Titan Company (Titan) posted a consolidated sales growth of 16% yoy in 2QFY25. The standalone jewellery segment’s sales grew by 25% yoy to Rs 105.7bn with SSSG at 15%, while consolidated jewellery sales (incl. bullion & Caratlane) grew by 15.3% yoy to Rs 128bn. Caratlane grew by 28% yoy with SSSG at 28%. The gold rush triggered by a 900bp drop in customs duty lasted well into mid-Sep 2024, which then saw a pause due to the ‘Shradhh’ period this year from 17 Sep to 03 Oct (vs. largely falling in Oct last year). Demand picked up in Oct 2024, with both festive and wedding-related demand remaining healthy. The studded mix stood at 30% in 2QFY25 (vs. 33% in 2QFY24), posting a 12% yoy growth. The gold segment (incl. coins) grew 30%. The growth of new buyers in the studded range remained healthy, growing in double digits, but solitaire sales (large size) were impacted as consumers seemingly preferred to wait and watch due to soft international prices.”
A report by JM Financial said, “GAIL’s Q2FY25 standalone EBITDA was lower at Rs 37.5bn vs. JMFe/consensus of Rs 42.2bn/ Rs 40.3bn primarily due to lower-than-expected EBITDA from the gas trading segment; it was also partly driven by slightly lower gas transmission EBITDA. Petchem segment EBITDA was largely in line as marginally lower sales volume was offset by robust margin. Further, LPG & OHC segment EBITDA was also largely in line with slightly higher sales volume offsetting marginally lower margin. LPG pipeline segment EBITDA was steady as expected. We maintain BUY (revised TP of Rs 250) on steady growth visibility in the gas transmission business on account of higher tariff and various policy tailwinds (given the government’s target to increase the share of gas in India’s energy mix to ~15% by 2030 vs. ~7% currently).”
Today, majors including Apollo Hospitals Enterprises, Jindal Steel & Power, Blue Star, Gujarat Gas, Kansai Nerolac Paints, Trident, Sonata Software, Granules India, KPI Green Energy, JK Lakshmi Cement, Dhanuka Agritech, Kirloskar Ferrous Industries, Pricol, TeamLease Services, Avalon Technologies, Spencer Retail, among others are queued up to release their Q2 results.
With majors across sectors including Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Bharti Airtel, BHEL, HUL, ITC, Marico, Dabur India, Adani Wilmar, Nestle India, Bata India, L&T, Zomato, Paytm, IRCTC, PNB, ICICI Bank, Yes Bank, Axis Bank, HDFC Bank, GAIL, Mankind Pharma, Dr Reddy’s Laboratories, Piramal Pharma, PVR INOX, Maruti Suzuki, already having released their Q2 numbers, the second quarter earnings season has picked up pace.