Q2 Result 2024: Hyundai, Nykaa, Religare Enterprises, Yatra Online, Shalimar Paints, others releasing Q2 results today

Britannia Industries Ltd released its fiscal second quarter earnings with profit at Rs 531.55 crore, registering a decline of 9.4 per cent in comparison to Rs 586.50 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 4,667.57 crore, up 5.3 per cent as against Rs 4,432.88 crore during the same period of previous year. For the six-month period ended 30th September 2024, the consolidated sales grew 4.3 per cent while the profit after tax declined 0.8 per cent over previous year.

In an analysis report , Elara Securities said that higher retail annual premium equivalent (APE) growth in October was a positive surprise given that product launches were likely delayed across distributors as new commission is yet to be ironed out. However, growth was primarily driven by HDFC Life, ICICI Prudential Life, Max Life and Aditya Birla Sun Life. Most other firms reported weaker growth.

“We expect weaker APE growth in H2 for most firms coupled with lower margin expectation. In H1FY25, HDFC Life, IPRU Life, SBI Life and Max Life reported 25%, 27%, 9% and 29% APE growth, respectively, driven largely by term and unit-linked product (ULIP) products. The ULIP segment grew by 42% YoY for the four private firms while growth was muted in non-linked savings at 7% YoY, primarily because of outperformance of HDFC Life and the annuity segment at 7% YoY because of outperformance of IPRU Life. Retail protection grew 13% YoY with SBILIFE underperforming. We expect overall APE growth of 14% for H2FY25E, lower than 20% YoY in H1FY25. We believe margin will compress further on account of surrender value regulations and higher mix for ULIP for most firms; therefore, we expect overall VNB growth at 8% YoY for four private insurers for H2FY25E,” the report stated.

Elara Capital report stated, “KFC’s revenue growth was muted at 6.8% YoY due to an SSS decline of 7.0% YoY and ADS drop of 11.9% YoY, resulting in store additions (19.4% YoY) largely leading revenue growth in Q2. Dine-in revenue grew mere 1.5% YoY, as delivery channel growth outperformed Dine-in with 15.0% YoY growth, contributing 42% (+300bps YoY) to KFC sales. The high store addition weighed on KFC’s ADS (down 11.9% YoY) and SSS drop of 7% YoY. Overall demand was subdued due to higher number of days that favored a vegetarian preference in Q2FY25, though last year’s base was also soft due to Adhik maas. Expect some respite in SSSG for KFC given: a) investments in marketing initiatives, b) new flavors in entry-level KFC rolls and c) the festive season, which could aid SSSG, leading to an overall SSS decline of just 2.5% in FY25E.”

Vipul Bhowar, Senior Director Listed Investments, Waterfield Advisors, said, “In recent years, earnings have been primarily driven by cyclical sectors such as automotive, engineering, defence, infrastructure, real estate, and energy. These sectors experienced significant growth; however, the current reduction in government expenditure within them has led to a slowdown in earnings.

Managements, during their earnings updates, have indicated that urban consumers are cutting back on spending across various categories, including essentials like food and personal care products, as well as discretionary items due to economic uncertainties and rising costs of living.

In conclusion, the notable downgrades in earnings forecasts in India can be attributed to several factors: weak consumer demand, cyclical economic conditions, decreased government spending, and adverse weather. This current downturn is part of a natural economic cycle, rather than a structural issue, and it is expected to improve in the coming quarters.”

Today, majors including Hyundai Motor India, Samvardhana Motherson International, Bosch, Zydus Lifesciences, General Insurance Corporation of India, UNO Minda, FSN E-Commerce Ventures Nykaa, 3M India, Suven Pharmaceuticals, Natco Pharma, Cello World, Finolex Cables, Kirloskar Oil Engines, Reliance Power, NMDC Steel, Marksans Pharma, Minda Corporation, Sanofi Consumer Healthcare India, PN Gadgil Jewellers, Cera Sanitaryware, Religare Enterprises, Lux Industries, Allcargo Logistics, Cantabil Retail India, Yatra Online, Shalimar Paints, Liberty Shoes, among others are lined up to release their Q2 results.

With major companies across sectors including TCS, HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Mahindra and Mahindra, Bharti Airtel, HUL, ITC, Marico, Dabur India, Nestle India, Britannia, L&T, Adani Enterprises, Apollo Hospitals, Mankind Pharma, Dr Reddy’s Laboratories, GAIL, LIC, Godfrey Phillips, SBI, HDFC Bank, IRCTC, Coal India, JK Lakshmi Cement, Havells India, Paytm, ABFRL, Zomato, PVR Inox, Lupin, Tata Motors, and others already having released their Q2 numbers, the second quarter earnings season is now nearing its end.

Good Morning! As the quarter earnings season is nearing its end, the majority of companies have already released their Q2 results and a few others are queued up to announce their numbers this week. We, at FinancialExpress.com, have been continuously bringing to you all the updates on these numbers. Going forward as well, we will continue to keep you updated on these numbers, dividends announced by firms, reasons leading to their growth and even factors affecting the businesses. Stay tuned.