Q2 Earnings 2024: With the majority of the companies across sectors having already released their Q2 numbers for FY25, investors and market participants are keenly waiting for others to announce their earnings for the quarter. 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, Apollo Hospitals, Mankind Pharma, Dr Reddy’s Laboratories, GAIL, Punjab National Bank, Axis Bank, HDFC Bank, IRCTC, Coal India, JK Lakshmi Cement, Havells India, Paytm, Zomato, PVR Inox, Bajaj Auto, Piramal Pharma, among many others have announced their Q2 reports.
Today, companies like Mahindra and Mahindra, Trent, Cummins India, Lupin, Rail Vikas Nigam, Indian Hotels Company, NHPC, Linde India, Abbott India, Steel Authority of India, Page Industries, Astral Limited, Escorts Kubota, Cochin Shipyard, Aditya Birla Fashion & Retail, Emami, Alembic Pharmaceuticals, Gujarat State Petronet, Ircon International, NCC, Akzo Nobel India, Eureka Forbes, Happy Forgings, Va Tech Wabag, Bajaj Electricals, Allcargo Gati, among others are lined 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. According to areport by Motilal Oswal Financial Services (MOFSL), “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.”
Satish Mehta, CEO and Managing Director, Emcure Pharmaceuticals Ltd, said, “Emcure witnessed a strong performance in Q2. We have made significant investments in both our International and Domestic businesses over the past 2 years and the benefits of these efforts are starting to particularly reflect in the growth of our International business. Our recent inorganic additions – Sanofi partnership in India and Mantra acquisition in Canada – are now fully integrated and our focus is now on deriving both revenue and operational synergies. Moving forward, we aim to enhance the margins by leveraging operating efficiencies, while continuing to drive strong growth in both Indian and International markets through new product launches and market share gains.”
Emcure’s Domestic business grew by over 15% to Rs 933 crore, led by a steady performance in our base business and further aided by Sanofi distribution agreement.
The quarter saw strong growth especially in the International businesses that grew 25% YoY and 18% QoQ. The Canadian business continued to perform well, achieving a 51% YoY growth, driven by robust growth in our base business and our subsidiary, Mantra. The Rest of the world market business grew 29% YoY aided by strong growth in both ARV and Non-ARV segment. The company continues to see strong traction in its key focus markets. Europe experienced steady growth of 6%, driven by an increase in our base business.
Emcure Pharmaceuticals Ltd on Thursday posted a profit of Rs 201.55 crore for the fiscal second quarter, reporting a growth of 38.2 per cent in comparison to Rs 145.84 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 2001.98 crore, up 20.4 per cent as against Rs 1663.09 crore reported during the same period of previous financial year. The company EBITDA stood at Rs 380.8 crore, up 15.7 per cent on-year.
The company board declared an interim dividend for the financial year 2024-25 at the rate of Rs 1.50 per share of face value of Re 1 each. The record date for determining the shareholders entitled for payment of the said interim dividend has been fixed as 15th November, 2024. “The interim dividend shall be paid to the eligible shareholders after 15th November, 2024 within 30 days of the date of declaration,” it said.
Astral Ltd on Thursday posted fiscal second quarter profit at Rs 108.70 crore, down 17.5 per cent in comparison to Rs 131.70 crore during the same period of previous financial year. It posted revenue from operations at Rs 1370.40 crore, marginally higher than Rs 1363.00 crore recorded during the second quarter of FY24. The company EBITDA stood at Rs 210.2 crore, down 4.5 per cent YoY.
Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL, said, “In Q2, IHCL Consolidated for the hotel segment reported a strong EBITDA margin of 30.5%, a 330-basis points expansion, led by double digit revenue growth and sustained operational leverage. IHCL Standalone reported an all-time high Revenue of Rs 1,125 crore, a year on year growth of 19% and an EBITDA margin of 38.6%, an expansion of 390 basis points. Reflective of a strong balance sheet, the gross cash position for IHCL Consolidated as on 30th September 2024 stood at Rs 2,460 crore.”
In line with the company’s strategy of simplifying the holding structure, Ankur Dalwani added, TajSATS is fully consolidated in IHCL, for 2 months in Q2.
Puneet Chhatwal, Managing Director & CEO, IHCL, said, “The second quarter witnessed a strong revival of demand resulting in overall revenue growth of 28% and 16% growth for the hotel segment, marking the best ever Q2 Consolidated EBITDA margin at 29.9%. For FY2025, we continue to maintain a guidance of double-digit revenue growth led by the sustained growth in New Businesses, not like for like growth and healthy same store performance. This is reflected in a strong 16.5% growth in consolidated hotel segment revenue in October which is set to accelerate in the remaining months of Q3.”
IHCL has achieved a record signing of 42 hotels resulting in an industry leading portfolio of 350 hotels and met its market guidance of opening two hotels a month with 14 new hotel openings till date.
Indian Hotels Co Ltd on Thursday recorded a profit of Rs 554.58 crore for the fiscal second quarter, posting a jump of 232.2 per cent in comparison to Rs 166.92 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1826.12 crore, up 27.4 per cent as against Rs 1433.20 crore during the same period of previous financial year. The company EBITDA stood at Rs 501.2 crore, up 41.4 per cent YoY
Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited, said, “Organized channels like Modern Trade, e-Commerce, and Institutional sales now contribute 26.6% to our domestic business, a 190-basis point increase in the first half. We remain committed to achieving high single-digit revenue growth and double-digit EBITDA growth for FY25. The Q3 relaunch of Fair and Handsome and focused efforts on Kesh King strengthen our confidence in driving H2 growth. With a favourable winter forecast, we expect strong performance from our winter portfolio.”
Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited, said, “We are pleased to close the first half of the year with strong performance, achieving 6% revenue growth, 10% EBITDA growth, and a 16% profit increase despite macroeconomic challenges. For H2 FY25, we expect stronger offtakes driven by improved urban demand and stable seasons ahead. Our international business demonstrated resilience despite geopolitical challenges, delivering double-digit growth, excluding Bangladesh. Besides good performance of our existing brands, strategic investments and the recent launch of 11 new domestic products are set to boost consumer confidence and drive double-digit revenue growth in the second half.”
The company’s International Business demonstrated resilience amid geopolitical challenges, achieving a 12 per cent sales growth excluding Bangladesh. Overall, the International Business expanded by 6 per cent in both constant currency and INR terms during Q2, driven by strong performance in the MENA region.
The company board has declared payment of the first interim dividend of Rs 4 per equity share of Re 1 each fully paid-up i.e. 400 per cent on 43,65,00,000 equity shares of the company for the Financial Year 2024-25. Record date for ascertaining the names of the members who will be entitled to receive the interim dividend is 18th November, 2024.
Emami Ltd on Thursday posted a profit of Rs 212.66 crore for the fiscal second quarter, registering a growth of 19.1 per cent in comparison to Rs 178.50 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 890.59 crore, up 3 per cent as against Rs 864.87 crore during the same period of previous financial year, with domestic business growing by 2.6 per cent. Major brands Navratna, Dermicool and Healthcare range and Pain Management range performed well. The company EBITDA stood at Rs 250.6 crore, up 7 per cent YoY.
Elara Securities said, “ABB India (ABB IN) witnessed muted top-line growth, due to the slowdown in system orders and high base in Q3CY23. Margin continues to improve YoY, led by better pricing orders and operating leverage. However, we expect inflows to continue to slow and high base of CY24 may lead to lower growth in CY25. We lower our TP to INR 7,170 on slowdown in order inflows and margin likely to peak in CY24E, with a decline thereafter. We reiterate Reduce as the stock trades at 76x CY25E P/E.”
The company board declared a second interim dividend for FY 2024-25 of Rs 250 per equity share. It fixed the record date for the payment of interim dividend as16 November 2024. The date fixed for payment of dividend is on or before 6 December 2024, the company stated.
VS Ganesh, Managing Director, Page Industries Limited, said, “I am thrilled to share that our relentless dedication to sustainable growth, product enhancement, customer engagement, and brand development has led to robust revenue growth. Our operating margins remain strong, thanks to our focus on operational efficiencies, cost control, and strategic sourcing initiatives. We are committed to investing in future growth, and our digital transformation initiatives are progressing well, promising substantial operational benefits in the coming years. The dynamic e-commerce landscape has driven exciting growth, bolstered by our prior investments and meticulous preparations. With the festive season on the horizon, we anticipate a surge in consumer demand and are perfectly positioned to capitalize on these opportunities.”
Page Industries, which licences the Jockey and Speedo brands in India, on Thursday recorded a profit growth of 29.9 per cent for the fiscal second quarter at Rs 195.26 crore in comparison to Rs 150.28 crore posted during the same quarter of previous fiscal year. It reported revenue from operations at Rs 1246.27 crore, up 11.1 per cent as against Rs 1122.11 crore during the corresponding quarter of FY24. The company EBITDA stood at Rs 296 crore, up 25.6 per cent on-year.
Agri machinery products: During the quarter, tractor volumes came in at 25,995 units as against 26,241 units in corresponding quarter. The segment recorded revenue at Rs 1884.2 crore. EBIT margin for the quarter came at 9.1 per cent.
Construction equipment: For the quarter, construction equipment’s sales volume came at 1394 units as against 1709 units in corresponding quarter. Segment revenue was reported at Rs 379.9 crore and EBIT margin came at 9.3 per cent.
Railway equipment: For the quarter ended September 2024, the segment recorded revenue at Rs 211.2 crore as against Rs 234.3 crore during Q2FY24. EBIT margin was at 15.2 per cent.
Escorts Kubota Ltd on Thursday posted a profit of Rs 324.22 crore for the fiscal second quarter, registering a growth of 54.0 per cent in comparison to Rs 210.51 crore during the same period of previous fiscal year. It posted revenue from operations at Rs 2,488.49 crore, marginally higher than Rs 2,477.71 crore recorded during the second quarter of FY24. The company EBITDA stood at Rs 265 crore, up 0.2 per cent YoY.
M&M says "surplus rainfall of 8%, strong reservoir levels at 87%(15% above LPA) andgGrowth in Kharif output apparent by significant pickup of mandi arrivals in October second-half" helped Q2FY25 performance.
According to M&M, hike in MSP of key Rabi crops such as Wheat and Mustard by 5-7% Y-o-Y along with spending on rural development saw significant growth in Aug-September is a favourable development and they expect this to "continue in H2FY25 along with terms of trade remaining favourable."
Bajaj Electricals Ltd on Thursday recorded a profit of Rs 12.90 crore for the fiscal second quarter, posting a decline of 52.7 per cent in comparison to Rs 27.28 crore reported during the second quarter of FY24. It posted revenue from operations at Rs 1118.33 crore, up 0.5 per cent as against Rs 1112.82 crore during the same period of previous fiscal.
While Bajaj Electricals recorded revenue of Rs 868.27 crore from its consumer products business, the lighting solutions vertical recorded a revenue of Rs 250.06 crore during the quarter in review.
Indigo Paints Ltd on Thursday recorded a profit of Rs 22.26 crore for the second quarter of FY25, registering a decline of 12.1 per cent in comparison to Rs 25.32 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 299.53 crore, up 7.4 per cent as against Rs 279.02 crore during the same period of previous fiscal year. The company EBITDA stood at Rs 41.6 crore, down 1.4 per cent YoY.
Rajiv Rajgopal, Chairman and Managing Director, Akzo Nobel India Limited, said, “In Q2FY25, we continued to deliver volume growth while maintaining profitability. Topline growth was led by strong B2B performance across paints and coatings. While there has been an increase in raw material costs, we invested in growth and protected our double-digit profitability by optimizing operational expenses. In the first half of FY25, despite challenging market conditions, we continued to deliver growth while holding our profitability.”
The company board approved an interim dividend of Rs 70 per equity share for the financial year 2024-25. This dividend shall be payable within 30 days from today. The company fixed 15th November 2024 as the record date for determining entitlement of members to the aforesaid interim dividend for the financial year 2024-25.
“Based on the company’s strong performance in the first half of FY25 and to commemorate completion of Akzo Nobel India’s 70th year in India, the Board is delighted to announce an interim dividend of Rs 70 per share for FY25,” said Rajiv Rajgopal, Chairman and Managing Director, Akzo Nobel India.
Akzo Nobel India Limited on Thursday posted fiscal second quarter profit at Rs 97.90 crore, up 3.9 per cent in comparison to Rs 94.20 crore recorded during the same period of previous financial year. It posted revenue from operations at Rs 982.30 crore, registering a growth of 2.7 per cent as against Rs 956.30 crore recorded during the second quarter of FY24. The company EBITDA stood at Rs 146 crore, up 3 per cent YoY.
India Branded Business
India Branded Business grew 6% to Rs 609 crore for the quarter. The segment recorded good growth in specialty therapies like 8 per cent in Gynaecology, 11 per cent in Cardiology, 18 per cent in Anti Diabetic and 13 per cent in Ophthalmology therapies. Animal Health business grew 20 per cent for the quarter with a basket of strong brands driving outperformance.
International Business
US Generics grew 5 per cent to Rs 467 crore for the quarter, with 8 launches in the US market during the period. Ex-US International Formulations grew 18 per cent to Rs 298 crore for the quarter. 9 ANDA approvals received during the quarter, 214 Cumulative ANDA approvals.
API Business
API business was at Rs 274 crores during the quarter.
Shaunak Amin, MD, Alembic Pharmaceuticals Limited, said, “India’s Branded Business continues to enhance execution capabilities in both quality and scale, with the Specialty and Animal Health segments showing good growth. The USFDA successfully inspected our Oncology Formulation Facility (F-2) without any form 483 observations.”
Alembic Pharmaceuticals Ltd on Thursday posted a profit of Rs 153.41 crore for the second quarter of FY25, registering a growth of 12.3 per cent in comparison to Rs 136.56 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1,647.98 crore, up 3.3 per cent as against Rs 1,594.93 crore during the same period of previous financial year. The company EBITDA stood at Rs 239.3 crore, up 15 per cent on-year.
Noel N Tata, Chairman, Trent Limited, said, "Consumer sentiment has remained relatively muted. This coupled with seasonality has meant that retail businesses have faced headwinds. In the forgoing context the team has delivered strong results across brands, concepts, categories and channels in Q2. The market opportunity associated with building brands and a pure play direct-to-customer business like ours remains immense. We continue to pursue our expansion programme and deepen our store presence with the aim of being ever closer and convenient to customers. Also, we seek to explore additional avenues of growth. It is in this context that we recently launched our first international Zudio store in the UAE and the Zudio Beauty concept in India. We have applied Trent’s playbook to the Star business and are witnessing strong customer traction. The success of own branded products augurs well for the Star business. We are confident that this business is well poised to shift gears and deliver substantial value to customers and shareholders.”
Trent operates with a significant portfolio of over 800 “large-box” fashion stores. In Q2, the company continued to expand its store footprint across concepts, with presence across 184 cities. As of 30th September, the store portfolio included 226 Westside, 577 Zudio and 28 stores across other lifestyle concepts. During the quarter, Trent opened 7 Westside and 34 Zudio stores (including 1 in Dubai) across 27 cities. The firm also consolidated 9 Westside and 16 Zudio stores.