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.”
Trent Ltd on Thursday recorded a profit of Rs 335.06 crore for the second quarter of FY25, registering a growth of 46.9 per cent in comparison to Rs 228.06 crore during the same period of previous financial year, missing estimates. It posted revenue from operations at Rs 4,156.67 crore, up 39.4 per cent as against Rs 2,982.42 crore during the second quarter of FY24. The company EBITDA stood at Rs 642 crore.
According to a CNBC TV18 poll, Trent was expected to record Q2 profit at Rs 428 crore and revenue for the quarter in review was estimated at Rs 4295 crore.
• Highest ever quarterly volumes at 231k, up 9 per cent; highest ever quarterly UV volumes at 136k
• SUV capacity at 54k, up 10 per cent from F24 exit
• Consolidated Revenue: Rs 21,755 crore, up 15%
• Consolidated PAT: Rs 1,423 crore, up 40%
Farm
• Highest ever Q2 market share at 42.5 per cent; volumes at 92k, up 4 per cent
• Consolidated Revenue: Rs 8,194 crore, down 2%
• Consolidated PAT: Rs 800 crore, flat due to macro headwinds in international farm markets
Services
• MMFSL AUM up 20 per cent, GS3 at 3.8 per cent improved by 50 bps, standalone PAT up 57 per cent
• Tech Mahindra EBIT margin improved by 490 bps, PAT up 2.5x
• Mahindra Lifespaces residential pre-sales of Rs 397 crore, down 13%
• Club Mahindra total income: Rs 371 crore, up 12%
• Mahindra Logistics revenue: Rs 1,521 crore, up 11%
• Services Consolidated Revenue: Rs 9,010 crore, up 12%
• Services Consolidated PAT: Rs 947 crore, up 1.8x
Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd, said, “While the Auto and Farm segments continue to deliver the strong performance we have come to expect of them, this quarter also reflected the strength of our Services portfolio. This has been the trend through H1 F25 and we expect it to continue for the rest of the year in line with our strategy.”
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd, said, “In Q2 FY25, we gained market share across both our Auto and Tractor businesses. SUV volumes increased by 18% YoY, maintaining leadership in revenue market share, with an increase of 190 bps YoY on the back of two successful launches. Volume market share for LCVs <3.5T stands at 52.3%, a rise of 260 bps YoY. The auto standalone PBIT margin was 9.5%, a gain of 140 bps YoY (excl. PY gain on LMM transfer). In our tractor business, we achieved our highest-ever Q2 market share at 42.5%, with standalone margins up by 150 bps YoY.”
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd, said, “In Q2 FY25, we gained market share across both our Auto and Tractor businesses. SUV volumes increased by 18% YoY, maintaining leadership in revenue market share, with an increase of 190 bps YoY on the back of two successful launches. Volume market share for LCVs <3.5T stands at 52.3%, a rise of 260 bps YoY. The auto standalone PBIT margin was 9.5%, a gain of 140 bps YoY (excl. PY gain on LMM transfer). In our tractor business, we achieved our highest-ever Q2 market share at 42.5%, with standalone margins up by 150 bps YoY.”
Dr Anish Shah, Managing Director & CEO, M&M Ltd, said, “Our businesses have delivered a solid operating performance this quarter. Auto and Farm continued to strengthen market leadership by gaining market share and expanding margins. MMFSL GS3 remained under 4% (at 3.8%) and end losses have improved structurally. TechM delivered a good quarter and the long-term focus remains on reverting to past profitability. Our growth gems are progressing well on the 5x challenge.”
Mahindra & Mahindra Ltd on Thursday released its fiscal second quarter earnings with consolidated profit at Rs 3,170.72 crore, registering a growth of 35.1 per cent in comparison to Rs 2,347.75 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 37,689.04 crore, up 9.9 per cent as against Rs 34,281.20 crore during the same period of previous fiscal year.
The company said that the Auto and Farm delivered robust operating results with profits up 23 per cent. Financial services AUM grew at 20 per cent. TechM showed good traction in BFSI and EBIT improvement of 490 bps. Services delivered 1.8x PAT vs Q2F24.
Elara Securities said, “Oil India’s (OINL IN) Q2 earnings declined YoY due to power outage at its production site and lower oil & gas intake from Numaligarh Refinery (NRL, 69.6% subsidiary of OINL), which are temporary in nature. However, its aggressive drilling plan is intact and with commission of GAIL’s Guwahati-Barauni gas pipeline (GBPL) in H1, OINL’s strong guidance of 20% crude oil production and 60% gas production growth over H1FY25 would remain intact, though with some quarters of delay due to demand constraints till the completion of North-East’s Indradhanush Gas Grid pipelines (IGGPL) and capacity expansion at NRL.”
International IT Services:
Revenue: Rs 707.9 crores; up 2.9% QoQ
Revenue in USD: $84.6 million, up 2.3% QoQ
EBITDA (Before Other Income & Fx ): Rs 128.9 crore; up 0.1% QoQ
PAT: Rs 62.2 crore; down 4.5% QoQ
Domestic Products & Services:
Gross contribution: Rs 70.2 crore; up 2.5% QoQ
EBITDA (Before Other Income and Fx): Rs 48.4 crore; up 2.2% QoQ
PAT: Rs 44.3 crore; up 9.5% QoQ
Samir Dhir, MD & CEO, Sonata Software, said, “In Q2’25, our International business delivered 2.3% QoQ growth. During the quarter, we won three large deals, our first multi-million-dollar deal on Microsoft Fabric, and a Gen AI modernization with a Top 50 global Pharma client leveraging our “responsible first” differentiated Harmoni.AI offering. We remain optimistic about our long-term vision and growth prospects of Sonata.”
Sujit Mohanty, MD & CEO, Sonata Information Technology Limited, said, “We acquired new clients across all hyperscalers and platform businesses during the quarter, driving diversified growth for our business. Our newly formed IT Security business offerings enabled wins during the quarter.”
Sonata Software Ltd posted a profit decline of 14.2 per cent for the fiscal second quarter at Rs 106.49 crore in comparison to Rs 124.17 crore during the same period of previous financial year. It posted revenue from operations at Rs 2169.83 crore, up 13.5 per cent as against Rs 1912.57 crore during the corresponding quarter of FY24. The company EBIT stood at Rs 144.3 crore and the margin came in at 6.7 per cent.
Elara Securities said, “There have been concerns on lending in the unsecured retail segment, with the RBI actions keeping the ecosystem on guard. We have started to see stress crystalizing on unsecured lending (personal loan [PL], credit card & microfinance) and remain watchful. A few interesting emerging trends are as follows: 1) rising delinquency in personal loan and credit card – the slippages rate in the high single digits for a few banks, 2) MFI stress is high – a few have seen double-digit slippages run-rate, and 3) some have curtailed growth, rationalized risk management practices, and tweaked write-off policies.”
Vinita Singhania, Chairperson & Managing Director (CMD), JK Lakshmi Cement, said, “The profitability of the company for the quarter has been impacted due to sharp drop in sales realization in our primary markets.”
In terms of sustainability initiatives, the company is implementing a project for enhancing its TSR from 4 per cent to 16 per cent in a phased manner at its Sirohi Cement Plant. The share of renewable power green power in the company’s power mix was 47 per cent for the quarter.
JK Lakshmi Cement Ltd reported a loss of Rs 19.24 crore during the fiscal second quarter in comparison to a profit of Rs 95.87 crore recorded during the same period of previous financial year. It posted revenue from operations at Rs 1234.29 crore, registering a decline of 21.6 per cent as against Rs 1574.53 crore during the second quarter of FY24.
ICICI Securities said, “Jindal Steel & Power’s (JSPL) consol. EBITDA was 15% ahead of our estimates. Key points: 1) Sales volume of 1.85mt was impacted by shutdown at Raigarh plant. 2) Standalone EBITDA/te was at Rs 10,357 compared to our estimate of Rs 10,158. 3) Expansion plan is on track. 4) Net debt rose by 19% QoQ to Rs 124.6bn as expansion capex accelerated. Ahead, management expects H2FY25 to be better owing to lower coking coal cost and the recent price hike of Rs 1,000–2,000/te. Besides, we believe that volume is likely to pick up in line with traction in demand. Taking cognizance of JSPL’s H1FY25 performance and outlook, we trim our FY25E/FY26E EBITDA by 2% for FY26E.”
Today, majors including Mahindra and Mahindra, Trent, Cummins India, Lupin, Rail Vikas Nigam, Indian Hotels Company, NHPC, Steel Authority of India, Page Industries, Astral Limited, Escorts Kubota, Cochin Shipyard, Aditya Birla Fashion & Retail, Emami, Alembic Pharmaceuticals, Gujarat State Petronet, Ircon International, Akzo Nobel India, Eureka Forbes, Happy Forgings, Va Tech Wabag, Bajaj Electricals, Allcargo Gati, among others are lined up to release their Q2 results.
With majors across industries 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, ICICI Bank, Yes Bank, Axis Bank, HDFC Bank, Kansai Nerolac Paints, Mankind Pharma, Dr Reddy’s Laboratories, Apollo Hospitals, Piramal Pharma, PVR INOX, Maruti Suzuki, already having released their Q2 numbers, the second quarter earnings season has picked up pace.
Greetings! While the quarter earnings season has caught a good pace now with a significant number of companies having already released their Q2 numbers, we, at FinancialExpress.com, have been continuously updating you with their performance. Going forward as well, we will continue to keep you updated on these numbers, dividends announced by firms, reasons leading to growth and even factors affecting the businesses. Stay tuned.