Q2 Earnings 2024: With majors like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Mahindra and Mahindra, Bharti Airtel, HUL, ITC, Marico, Dabur India, Adani Wilmar, Nestle India, L&T, Adani Enterprises, Apollo Hospitals, Mankind Pharma, Dr Reddy’s Laboratories, GAIL, LIC, SBI, Punjab National Bank, Axis Bank, HDFC Bank, IRCTC, Coal India, JK Lakshmi Cement, Havells India, Paytm, ABFRL, Zomato, PVR Inox, Lupin, Tata Motors, among many others having already released their Q2 earnings report, the earnings season is in full swing. Now, market participants and investors are keenly waiting for many others to announce their earnings report.
Today, companies like Oil and Natural Gas Corporation, Hindalco Industries, Britannia Industries, Shree Cements, NMDC, Bank Of India, Jubilant Foodworks, Godfrey Phillips India, Hindustan Copper, The Ramco Cements, Devyani International, Triveni Turbine, Blue Dart Express, PG Electroplast, BEML, Zydus Wellness, Balrampur Chini Mills, Keystone Realtors, Power Mech Projects, Orchid Pharma, Electronics Mart India, Dollar Industries, Bajaj Consumer Care, Parle Industries, 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 a report 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.”
Weak numbers from India Inc for the quarter have led to the biggest downgrades in earnings estimates since early 2020, according to Jefferies. The brokerage firm said it has downgraded earnings estimates for 63 per cent of the 121 companies under its coverage that have reported their latest quarterly results.
Godfrey Phillips India Limited on Monday posted its fiscal second quarter profit at Rs 248.31 crore, registering a growth of 22.9 per cent in comparison to Rs 202.06 crore during the same period of previous fiscal year. It posted revenue from operations at Rs 1651.42 crore, up 20.1 per cent as against Rs 1374.55 crore during the second quarter of FY24.
Shyam S Bhartia, Chairman and Hari S Bhartia, Co-Chairman, Jubilant FoodWorks Limited, said, “Our commitment to convenience, innovation, and consumer value is driving competitive growth. We sustained broad-based momentum in Q2, achieving system sales of Rs 45.1 billion in H1 and grew the JFL network to 3,130 stores by adding 139 stores across brands and markets. We’re also pleased with the elevated trajectory in operating profit, enabled by acquisition of a well-run franchised network in Turkey, which complements our corporate-owned store setup in India.”
Jubilant Foodworks Ltd, which operates Domino's restaurants in India, on Monday reported a profit drop of 31.6 per cent for the fiscal second quarter at Rs 66.53 crore in comparison to Rs 97.20 crore during the same period of previous year. It posted revenue from operations at Rs 1954.72 crore, registering a growth of 42.8 per cent as against Rs 1368.63 crore recorded during the second quarter of FY24. The Group System sales came in at Rs 2271.90 crore.
Neeraj Akhoury, Managing Director, Shree Cement Ltd, said, “Despite strong headwinds on account of extended monsoon and softer pricing environment across the industry, Shree Cement has delivered a steady performance on the back of accelerated operational efficiency measures, focused cost optimisation drive and product premiumisation initiatives. The company expects gradual improvement in demand driven by increased government spending in the second half of the financial year and improved demand from urban and rural segments owing to good monsoon. Shree Cement remains focused on its long-term growth and sustainability, with ongoing investments in capacity expansion and the adoption of greener technologies.”
Shree Cement Ltd on Monday posted a profit of Rs 76.64 crore for the fiscal second quarter, registering a decline of 82.8 per cent in comparison to Rs 446.62 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 4054.17 crore, down 15.1 per cent as against Rs 4773.67 crore during the second quarter of previous financial year. In a regulatory filing, Shree Cement said, “Despite the challenging demand conditions on account of prolonged monsoon and softer prices faced by the industry, the company’s focus on maintaining brand equity, product premiumization and improving geo-mix helped maintain its realisation on QoQ basis. This coupled with cost optimization and operational efficiency measures drove EBITDA during the quarter.”
Jai Shroff, Chairman and Group CEO, said, “Our volume growth continues, and we are on the path to achieving our EBITDA and net debt guidance levels. With our fundamentals intact, we saw robust volume growth in our global crop protection business. In India, there was an overall positive momentum. Pushing sales closer to application season has optimized our working capital requirements and minimized likelihood of sales returns. We will continue to focus on enforcing stricter credit and inventory norms to enhance cash flows. On our global seeds platform, Advanta, we are back on track after some headwinds in Q1. Our growth this quarter was margin accretive, driven by favorable pricing in grain sorghum and corn. The continued business momentum is expected to yield favorable results in the second half of the year.”
UPL Limited on Monday posted its fiscal second quarter earnings with loss at Rs 585 crore in comparison to a loss of Rs 293 cro recorded during the same quarter of FY24. It posted revenue from operations at Rs 11,090 crore, up 9.0 per cent as against Rs 10,170 crore during the same period of previous financial year.
The company recorded revenue of Rs 9,448 crore for its crop protection segment, Rs 1,113 crore for its seeds business, and Rs 599 crore for its non-agro business.
The company board declared an interim dividend of 300 per cent, i.e., Rs 3 per equity share of Re 1 each fully paid up for the Financial Year 2024-25 and the same shall be paid to the equity shareholders of the company whose names appear in the register of members of the company or in the records of the depositories as beneficial owners as on Monday, 25th November, 2024 which is the Record Date fixed for the said purpose.
“We would like to further inform you that the said Interim Dividend will be paid to the Equity Shareholders of the Company on and from Thursday, 5th December, 2024,” the company said.
Balrampur Chini Mills Ltd on Monday posted its fiscal second quarter profit at Rs 67.18 crore, registering a de-growth of 59.6 per cent in comparison to Rs 166.25 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1297.95 crore, down 15.7 per cent as against Rs 1539.47 crore during the same period of previous fiscal year. The company EBITDA stood at Rs 49.1 crore, down 70.2 per cent YoY.
BEML Ltd on Monday posted a profit of Rs 51.03 crore during the fiscal second quarter, marginally lower than Rs 51.78 crore recorded during the second quarter of FY24. It posted revenue from operations at Rs 859.84 crore, down 6.2 per cent as against Rs 916.79 crore during the same period of previous fiscal year. The company EBITDA stood at Rs 73 crore, up 18.3 per cent on-year.
SML Isuzu Limited on Monday reported its fiscal second quarter profit at Rs 21.80 crore, posting a growth of 3.4 per cent on-year in comparison to Rs 21.09 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 549.71 crore, up 10.3 per cent as against Rs 498.59 crore during the same period of previous fiscal year. The company EBITDA stood at Rs 44.9 crore, up 14.6 per cent YoY.
Concord Biotech Ltd on Monday posted fiscal second quarter profit growth of 18.2 per cent at Rs 95.74 crore in comparison to Rs 81.02 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 310.18 crore, up 18.2 per cent as against Rs 262.35 crore during the same period of previous financial year. The company EBITDA stood at Rs 136.6 crore, up 14.6 per cent on-year.
Boman Irani, Chairman and Managing Director, Keystone Realtors Limited, said, “In FY25, the company has demonstrated remarkable progress in terms of pre-sales, collections, new project additions and new launches. We are thankful to all our stakeholders for their continued support and trust in us.”
“As we successfully complete the second quarter of FY25, I am thrilled to share that we are at a pivotal moment for our company. Building on the remarkable momentum from FY24, our pre-sales have soared to Rs 700 crore in Q2 FY25, which is more than doubled on YoY basis, a testament to our resilience and strategic vision. We’ve successfully launched 3 more RERA projects this quarter, totaling a GDV of Rs 2,040 crore with cumulative launch of 5 projects having GDV of Rs 4,057 crore in H1 FY25. We also added 3 more new projects contributing additional GDV of Rs 1,333 crore in Q2 FY25. We have witnessed strong demand for our product in the past launches and with the festive season approaching, we’re excited about our strong pipeline of launches for the rest of FY25. I am confident that we are well-equipped to not only add new projects but also bring them to life efficiently. Going forward, we will continue to follow the asset-light model, with redevelopment serving as a key driver of growth,” he added.
Keystone Realtors Ltd on Monday announced that the company recorded a profit of Rs 66.27 crore during the second quarter of FY25, registering a jump of 1427.0 per cent in comparison to Rs 4.34 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 533.07 crore, down 13.7 per cent as against Rs 618.04 crore during the same period of previous financial year. The company EBITDA stood at Rs 80.5 crore.
InCred Equities stated, “Kansai Nerolac Paints’ (KNPL) consolidated net sales declined by 0.3% yoy to Rs 19.5bn while standalone recorded a growth of ~1% yoy Rs 18.6bn in Q2FY25. The overall volume grew in mid-single digits (c.4%) while the decorative paints segment saw a decline, led by muted demand due to extended monsoons. Oct 2024 saw some improvement in demand, as per management, but there was some weakness towards the end of the month. In terms of regions, east & north Indian markets performed better in Q2. KNPL claims urban demand remains firm, but with a new entrant aggressively stepping up its distribution reach & the No.2 player investing in increasing its penetration in urban markets, we expect KNPL to feel the pinch and fight a challenging uphill battle to regain its lost market share.”
Snowman Logistics board approved the appointment of Padamdeep Singh Handa as Chief Executive Officer and Whole-Time Director of the company.
Prem Kishan Dass Gupta, Chairman, Snowman Logistics Limited, said, “We had a robust Q2 quarter, with double digit revenue growth fueled by strong momentum in our 5PL business. We are pleased to announce the inauguration of our Lucknow warehouse, and our expansion plans continue with more facilities in the pipeline with the goal of expanding our regional footprint and service capabilities. We have a strong demand forecast from the customers, and with ongoing focus on cost optimization, Snowman is set to enhance profitability across our operations.”
Snowman Logistics on Monday reported its fiscal second quarter earnings with profit at Rs 0.61 crore, registering a decline of 79.2 per cent in comparison to Rs 2.93 crore during the same period of previous financial year. It posted revenue from operations at Rs 143.45 crore, up 15.7 per cent as against Rs 124.02 crore during the second quarter of FY24. The company EBITDA stood at Rs 21.9 crore, down 8.6 per cent on-year.
Axis Securities said, “H1FY25 was subdued due to factors such as elections, higher monsoons, labour shortages, and soft prices, impacting overall operating performance. H2FY25 is expected to show improvement with higher demand and better pricing. Given JKLC’s strong presence in North, West, and East India, along with strategic initiatives like increasing sales of premium and value-added products, higher blending ratios, enhanced trade sales, greater use of green energy, and direct dispatches, the company is well-positioned to strengthen its topline and margins. We project a CAGR of 7% in volume, 6% in revenue, 15% in EBITDA, and 18% in PAT over FY23-FY26E. Monitoring cement pricing will remain crucial.”
A report by InCred Equities stated, “Tata Motors’ consol. EBITDA in Q2FY25 fell 10% yoy & 20% qoq to Rs 146 billion, missing our estimate by 13% but in line with the Bloomberg or BB consensus estimate. The EBITDA miss was across divisions, but mostly from JLR’s EBITDA dip of 26% yoy and 34% qoq to £759, a 33% miss to our estimate. Higher interest costs and taxation led to normalized PAT dip of 28% yoy & 46% qoq to Rs 28.6 billion, missing our estimate (43%) and the BB consensus estimate (30%). Consolidated automotive net debt rose further by 18% qoq to Rs 220 billion.
Ravi Jaipuria, Non-Executive Chairman, Devyani International Limited, said, “We are happy to welcome new brands to the DIL family, catering to youth categories such as handcrafted tea, fresh cut fries and authentic Thai & Asian cuisine. The new partnerships reflect our commitment to bringing diverse, high-quality contemporary food & beverages brands to our customers, while driving sustainable growth for DIL. With exclusive rights for these brands in India, DIL is consolidating its strategy of ‘FOOD ON THE GO’ and ‘HOUSE OF BRANDS’. We remain committed to our investments across DIL’s brand portfolio to broaden our reach, engage target consumers, and seize growth opportunities across the country. While we recognize the current subdued environment in the QSR industry, we are confident that the current headwinds are transient in nature. As firm believers in India’s growth story, we are well positioned to capitalize on future opportunities and deliver value to all our stakeholders.”
KFC-operator Devyani International on Monday released its fiscal second quarter earnings with profit at Rs 1087.51 lakh in comparison to Rs 819.47 crore reported during the corresponding quarter of previous fiscal year. The Q2FY25 profit dropped by 99.9 per cent on-year. It posted revenue from operations at Rs 1222.16 crore, up 49.1 per cent as against Rs 819.47 crore during the second quarter of FY24. The company EBITDA stood at Rs 195.5 crore, up 27 per cent YoY.
Zydus Wellness continued to launch new products and extensions. The company forayed into the adult nutrition space delivering high quality protein with pre and probiotics to support Gut-Muscle Axis under the brand name Complan Viemax. Bringing in a plant-based table spread under the umbrella of Nutralite, the company has introduced a 100% plant-based buttery spread in two delicious variants: Olive and Garlic & Herbs. Zydus Wellness has also ventured into the cheese category with Nutralite Professional and launched a few variants of mayonnaise and fat spreads. Following a strong positive response from international markets, the company has launched Sugar Free D’lite Cookies in India.
Zydus Wellness Ltd on Monday reported its fiscal second quarter earnings with profit at Rs 20.90 crore, registering a jump of 254.2 per cent in comparison to Rs 5.90 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 492.90 crore, up 12.0 per cent as against Rs 439.90 crore during the same period of previous financial year. The company EBITDA stood at Rs 19.8 crore, up 17.2 per cent on-year.
InCred Equities said, “Lupin’s strong earnings momentum continued in Q2FY25 as well, with a healthy growth in India business and a stable US performance QoQ, along with strong margin at 23.1%, despite a one-time provision of Rs 585 million (adj. margin at 24.1%). Margin was boosted by higher production-linked incentive or PLI scheme income of Rs 1.65 billion (vs. Rs 860 million in Q1). Adjacent loss-making businesses had an impact of 0.8% on EBITDA in Q2. Gross margin was up by 140 bp QoQ led by a better mix and the PLI scheme income. R&D spending inched up by 160 bp QoQ (at 7.9% of sales) and was in line with its guidance of Rs 18 billion for FY25F. India business growth was healthy at 19% YoY/4% QoQ; the Rx business grew 11% YoY, in line with expectations. The US business stood at US$220 million (estimated US$222 million) and was flattish QoQ, impacted by competition in gSuprep and gDoxycycline. EMEA and growth markets grew by 20%/12% YoY, respectively. Higher PLI scheme benefits are likely to continue in the rest of FY25F. The company revised its margin guidance to 22-23%.”
Britannia Industries, Axis Securities said, is expected to report a 7 per cent YoY growth in revenue with 9 per cent volume growth on the back of improving rural trends, price cuts. EBITDA margin, it added, is expected to contract on account of higher RM and adspends. Key monitorables are rural demand environment, RM cost outlook, and market share trends. Britannia will report its Q2 earnings today.
According to a CNBC TV18 poll, Britannia is expected to post Q2 revenue at Rs 4697 crore and profit for the quarter is estimated at Rs 616 crore.
Although Emami H1 growth was below expectations, Elara Securities said that it is optimistic about a stronger H2, as the anticipated severe Winter due to La Niña is likely to drive increased demand and bolster growth in the Winter portfolio.
“Management is working to revive growth in its male grooming, Kesh King, and Boroplus portfolios. They relaunched Fair & Handsome in Q3 with new packaging & a campaign, and plan to expand the HE brand into other male grooming areas. BCG consultants have been appointed to develop strategies for Kesh King and Boroplus, which has taken a hit from increased consumer adoption of online brands. The strategy will be finalized in the next two quarters, with results expected by FY26. Management anticipates better domestic performance in H2, due to a severe Winter and increased consumption, aiming for high single-digit growth in FY25,” stated the analysis report by Elara Securities.
A report by JM Financial stated, “We have been positive on LIC’s ability to grow its non-par business, and strong EV returns, led by MTM gains - which has played out well. We recognise that sustained 20%+ APE growth evidenced in 1H levels in individual/group business will be difficult for LIC, given its already wide penetration. LIC stock has been flattish since June, after a strong performance in early-FY24. We believe growth in individual business will be sluggish as new norms are absorbed in 3Q, while group business growth normalises. However, valuations of 0.7x FY26e EV are undemanding. We wait for LIC’s strong agency channel to absorb the new norms before altering our near term growth estimates, while the quarter adds confidence to our estimated VNB trajectory. Weak markets will counter the beat in EV in 1H25, hence, we do not materially change our FY25/FY26e nos.”
InCred Equities said, “State Bank of India (SBI) reported ~2.9% qoq growth in advances to Rs38.5tr (+15.3% yoy) in 2QFY25, mainly due to agri/SME/corporate loans whereas retail loans witnessed seasonal weakness. Management remains firm on growing the loan book in the range of ~14-16% in the near term amid rising retail reach as well as rising corporate opportunities. Overall deposit growth picked up by ~4.4% qoq (+9.1% yoy), however the weak momentum in CASA deposits (+4.2% yoy), despite SBI’s rising presence and focus on new customer acquisition, indicates system-wide tighter liquidity impact. Though current accounts witnessed some momentum, savings accounts continue to remain a laggard due to the availability of diversified investment opportunities available to account holders, including term deposits.”
A report by JM Financial stated, “Q2FY25 earnings so far have made investors jittery and we have seen stocks of companies reporting weak earnings/ weak outlook correcting.”
Based on the analysis of 157 companies who have reported out of the JM Financial coverage universe of 275 companies: (1) 44% (69 companies) missed expectations, 41% (65 companies) beat expectations while 15% (23 companies) were inline. (2) 27% (43 companies) have reported weaker revenue growth than expected. (3) There is a slowdown in urban demand seen across FMCG, retail, auto and mall operators. (4) Chemicals and consumer durables have also seen a moderation in demand (5) MFIs and select private sector banks/ NBFCs witnessed stress in their unsecured book.