Q2 Earnings 2024: While major companies across sectors have already released their Q2 numbers for FY25, market participants and investors are keenly waiting for many others to announce their earnings report. Firms including 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, 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, ABFRL, Zomato, PVR Inox, Lupin, Piramal Pharma, among many others have announced their Q2 reports.
Today, companies like State Bank of India, Life Insurance Corporation of India, Tata Motors, Vedanta, Power Finance Corporation, Info Edge India, Ashok Leyland, MRF, Premier Energies, Fortis Healthcare, Ola Electric Mobility, Whirlpool of India, Welspun Corp, SignatureGlobal India, Relaxo Footwears, India Cements, Metropolis Healthcare, Mrs. Bectors Food Specialities, Inox India, Puravankara, Shipping Corporation of India, Star Cement, Ethos, Orient Cement, Khadim India Limited, VIP Clothing, Noida Toll Bridge Company, 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.”
India Inc is also under scanner as the country is watching its performance in the previous quarter and also the impact of the recent victory of Donald Trump in the US presidential election on the performance during the ongoing quarter and fiscal year.
Tata Passenger Vehicles posted Q2 revenue at Rs 11.7K crore, down 3.9 per cent and EBITDA came in at 6.2 per cent. H1FY25 revenue stood at Rs 23.5K crore, down 5.9 per cent. The segment launched Tata Curvv, entering the fastest growing mid-SUV segment with India’s first SUV Coupe.
Shailesh Chandra, Managing Director, TMPV and TPEM, said, “The Passenger Vehicle industry in Q2 FY25 witnessed ~5% decline in registrations, resulting in continued build-up of channel inventory. Sales of EVs were additionally impacted by lapse of certain subsidies. We moderated our offtakes in Q2 to proactively keep our channel inventory under control. Q3 has started off with a resurgence in industry demand on the back of a robust festive season. Tata Motors recorded its highest ever monthly registrations of ~68.5k during October, which helped in bringing down the inventory to normal levels.”
Tata Commercial Vehicles recorded Q2 revenue at Rs 17.3K crore, down 13.9 per cent and EBITDA was at 10.8 per cent. H1FY25 revenue was at Rs 35.1K crore, down 5.2 per cent.
Girish Wagh, Executive Director, Tata Motors Ltd, said, “Q2 FY25 moderated the positive momentum seen by the commercial vehicles industry at the start of the fiscal, due to slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilization due to heavy rains. Tata Motors Commercial Vehicles domestic sales at 79.8K units were 19.6% lower than Q2 FY24 sales. Our demand-pull strategy and vigilance on costs had the business deliver EBITDA margins of 11.2% in H1 FY25. Going forward, with the rains easing, increased infrastructure spending, and the arrival of the festive season boosting consumption, we anticipate demand to pick up.”
Adrian Mardell, Chief Executive Officer, JLR, said, “JLR has delivered a resilient performance in Q2, resulting in a 25 per cent increase in first half profits year-on-year. Our teams responded brilliantly to the aluminum supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients. We continue to make good progress delivering our Reimagine strategy. We have invested £250m so far to prepare our Halewood UK plant for electric vehicle production and with strong global demand for our products, we are well positioned to deliver on our commitments again this financial year.”
Jaguar Land Rover (JLR) reported Q2 revenue at £6.5 billion, down 5.6 per cent. The EBITDA was recorded at 11.7 per cent, down 320 bps. The company said that the profitability was impacted on account of temporary aluminum supply constraint and a hold placed on 6,029 vehicles for additional quality control checks. Production and wholesale volumes are expected to recover strongly in H2. H1FY25 revenue stood at £13.7 billion.
PB Balaji, Group Chief Financial Officer, Tata Motors, said, “Growth in the quarter was impacted due to significant external challenges as highlighted earlier. Overall, the business fundamentals remain strong, and we remain focused on our agenda of driving growth, competitiveness and free cash flows. As the supply challenges ease and demand picks up, we are confident of steady improvement in our performance and delivering a strong H2.”
Tata Motors Ltd on Friday posted its fiscal second quarter earnings with profit at Rs 3,343 crore, registering a decline of 11.2 per cent in comparison to Rs 3,764 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 101,450 crore, down 3.5 per cent as against Rs 105,129 crore during the same period of previous financial year. The company EBITDA stood at Rs 12,159 crore, down 19 per cent on-year.
Ola Electric Mobility Ltd on Friday reported its fiscal second quarter earnings with a loss of Rs 495 crore, narrowed from Rs 524 crore recorded during the second quarter of FY24. It posted revenue from operations at Rs 1214 crore, registering a growth of 39.1 per cent as against Rs 873 crore during the same period of previous financial year.
During the quarter, vehicles delivered by the company increased by 73.6 per cent and stood at 98,619 units as against 56,813 units delivered in the same period last year. The company ramped up deliveries of its mass market scooter portfolio (S1 X portfolio) during the quarter which helped accelerate growth. The mass market portfolio (sub Rs 1 lakh) continued to drive momentum and has grown by 15 per cent QoQ driving EV penetration while the premium portfolio continues to be a major contributor in revenue.
Deepak Acharya, Chief Executive Officer, INOX India Ltd, said, “Building on last quarter’s outstanding performance, we are thrilled to report another period of exceptional growth and innovation. Our continued success is driven by a strong influx of orders and our proven execution capabilities, reflecting the strength of our strategies and our commitment to delivering impactful results. The momentum in our growth trajectory remains steady, with each segment making significant contributions to our overall progress. As we expand our product portfolio with innovative, customer-centric solutions, we are strategically positioned to enhance our profits and deliver sustained value for our shareholders and investors.”
INOX India Ltd on Friday reported its fiscal second quarter profit at Rs 49.49 crore, up 7 per cent in comparison to Rs 46.25 crore during the same period of FY24. It posted revenue from operations at Rs 306.56 crore, registering a growth of 19.0 per cent as against Rs 257.65 crore during the second quarter of previous financial year.
The company reported order inflows totalling Rs 366 crore in the second quarter, adding to an expanding backlog and affirming market confidence across industrial and clean energy segments. The total order backlog as on Q2FY25 stood at the highest-ever mark of Rs 1178 crore, depicting enhanced global outreach, greater customization of products and solutions and a building trust in the company across the globe.
The company board has declared an interim dividend of Rs 12 per share (on face value of Rs 10 per share) for the financial year 2024-25. Record date for the purpose of determining the name of the members eligible for receipt of the interim dividend will be Wednesday, November 20, 2024. The dividend would be paid on or after December 4, 2024, it said.
The recruitment business continued the uptick in Q2, whereas non-recruitment businesses also continued to grow with reduced operating losses. Revenue growth in the recruitment business was 8.5% on-year and for non-recruitment business verticals namely 99acres (the real estate vertical), Jeevansathi (the matrimony business), and Shiksha (the education business) was 16.9%, 33.4%, and 9.7% respectively.
Hitesh Oberoi, Managing Director and Chief Executive Officer, Info Edge, said, “We are pleased to see double digit billings growth in the recruitment business after several weak quarters. Increased cash generation from this segment, coupled with reduced losses in our non recruitment businesses, position us strongly for sustainable growth.”
Info Edge (India) Ltd on Friday recorded fiscal second quarter earnings with profit for the period at Rs 84.73 crore, reporting a decline of 64.7 per cent in comparison to Rs 239.74 crore during the same period of previous financial year. It posted revenue from operations at Rs 700.82 crore, up 12.0 per cent as against Rs 625.85 crore reported during the second quarter of FY24.
Pranav Saboo, MD & CEO, Ethos, said, “We are pleased to announce a 22.6% growth to Rs 570.4 crore in H1FY25 compared to Rs 465.2 crore in H1FY24. This growth is primarily driven by an increase in the share of luxury and high-luxury segments, a rise in ASP, and volume growth. EBITDA also increased by 22.2% to Rs 98.0 crore in H1FY25, up from Rs 80.1 crore in H1FY24, reflecting a robust operational performance. EBITDA margin stood at 16.8% in H1 FY25, slightly lower than 16.9% in H1FY24. This dip was due to additional costs in H1FY25, including forex fluctuations, increased manpower for new store additions, and rent for new stores, which are still in the early stages of generating sales. Specifically, significant currency fluctuations, notably the depreciation of the INR against the CHF, resulted in a forex loss of Rs 4.65 crore. Currency volatility remains an inherent risk in global operations, and we have a comprehensive risk management framework to address such challenges effectively.”
Since April 2024, Ethos opened 12 new stores, with plans to open 13 more by the end of FY25. The company is currently operational in 26 cities with a total of 72 stores (including 2 Duty-free Stores at Delhi and Bengaluru).
Ethos Ltd on Friday reported its fiscal second quarter profit at Rs 21.25 crore, registering a growth of 14.3 per cent in comparison to Rs 18.59 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 297.13 crore, up 26.3 per cent as against Rs 235.22 crore during the same period of previous financial year. The company EBITDA stood at Rs 42 crore, up 13 per cent on-year.
Ajay Goel, CFO, Vedanta Limited, said, “This has been an outstanding quarter, highlighted by significant progress in our corporate and strategic initiatives, strong financial results, and excellent operational performance. We delivered our highest-ever H1 EBITDA of Rs 20,639 crore, up 46% YoY, with a robust 34% EBITDA margin and PAT before exceptional items of Rs 4,467 crore, a 230% YoY increase. This strong performance is driven by cost efficiency, volume growth, and favourable commodity prices. Additionally, we raised $1.4 billion at Vedanta through a $1 billion QIP and a $400 million HZL OFS. At the same time, with the $1.2 billion VRL bond issuance and ongoing deleveraging, we have reduced Holdco debt to $4.8 billion, the lowest level in a decade. This positions us well to generate lasting value for our stakeholders, both now and in the years to come.”
Arun Misra, Executive Director, Vedanta Limited, said, “Vedanta is proud to report our highest-ever first-half EBITDA of Rs 20,639 crore with 46% growth YoY. The second half of this year will be a transformative period with our major growth and integration projects coming online and ramping up. Through our structural interventions and initiatives, we have significantly reduced our cost of production over the past 12-15 months, and we will continue this trend in the coming quarters. As we move forward, operational excellence, sustained growth, and ESG leadership remain our strategic priorities. With a rich, diversified asset portfolio, a stronger balance sheet, and ongoing growth projects, we are well-positioned to deliver exceptional overall performance.”
Vedanta Limited on Friday recorded fiscal second quarter earnings with profit for the period at Rs 5,603 crore in comparison to a loss of Rs 915 crore reported during the corresponding quarter of FY24. It posted revenue from operations at Rs 37,171 crore, down 3.6 per cent as against Rs 38,546 crore during the second quarter of previous financial year. The company EBITDA stood at Rs 9,828 crore, down 14.4 per cent on-year.
The Central Board has accorded approval for raising Long Term Bonds up to an amount of Rs 20,000 crore through a public issue or private placement, during FY25. “The Bank has raised Rs 10,000 crore by issue of Long-Term Bonds and Rs 15,000 crore by Basel III compliant Tier 2 Bonds in the nature of debentures during the quarter under reference,” it said in a statement.
• Gross NPA ratio at 2.13% improved by 42 bps YoY
• Net NPA ratio at 0.53% improved by 11 bps YoY
• PCR (incl. AUCA) improved by 28 bps YoY and stands at 92.21%. Provision Coverage Ratio (PCR) at 75.66% improved by 21 bps YoY
• Slippage Ratio for H1FY25 improved by 2 bps YoY and stands at 0.68%. Slippage Ratio for Q2FY25 increased by 5 bps YoY and stands at 0.51%
• Credit Cost for Q2FY25 stands at 0.38%
• Credit growth at 14.93% YoY with domestic advances growing by 15.55% YoY
• Foreign Offices’ Advances grew by 11.56% YoY
• Domestic Advances growth is driven by Corporate Advances (18.35% YoY) followed by Agri Advances which grew by 17.67% YoY
• SME and Retail Personal Advances loans registered YoY growth of 17.36% and 12.32% respectively
• Whole Bank Deposits grew at 9.13% YoY, out of which CASA Deposit grew by 4.24% YoY. CASA ratio stands at 40.03% as on 30th September 24
State Bank of India on Friday announced its fiscal second quarter earnings with consolidated profit at Rs 20,219.62 crore, up 23.4 per cent in comparison to Rs 16,383.18 crore during the corresponding quarter of FY24. It posted total income for the quarter at Rs 1,63,802.38 crore. On a standalone basis, profit for Q2FY25 came in at Rs 18,331.44 crore, registering a growth of 27.9 per cent as against Rs 14,330.02 crore during the same period of previous financial year. The Net Interest Income (NII) for Q2 came in at Rs 41,620 crore.
JM Financial report said, “Tata steel reported consol. EBITDA of Rs 55bn, significantly higher than JMfe of Rs 48bn driven by strong performance in the Indian operations. India business witnessed a decline in realisations leading to a fall in EBITDA/t by Rs 0.8k/t to Rs 13.5k/t. Europe losses widened to USD75/t in 2Q as against USD28/t in 1Q. The company reported profit of Rs 2.8bn during 2Q. Net debt increased by Rs 66bn to Rs 888bn during 2Q primarily on count of higher capex at Rs 48bn.”
Shenu Agarwal, MD & CEO, Ashok Leyland, said, "Our focus on profitability continues. We are happy that we could improve our profitability by focusing on premiumization of our products, addressing cost compression opportunities, and continuously elevating our standards of customer service. Our PAT for Q2FY25 is an all-time high. Our EBITDA margins have improved both sequentially and on YaY basis, making this the seventh consecutive quarter of double-digit EBITDA. We are well on track to achieve mid-teen EBITDA in the medium term.”
Dheeraj Hinduja, Executive Chairman of Ashok Leyland, said, “The Indian Economy is expected to do well in the second half which would benefit our industry. We remain optimistic about industry prospects for H2 on the back of strong macroeconomic fundamentals, supported by the resumption of Government spending in Capex and good monsoons. Our robust all-round performance in Q2 is backed by our technological and cost leadership. Internationally as well, we are intensifying our expansion strategy in our focus markets of SAARC, Middle East, Africa and Asia, aimed at posting the best performance ever during this fiscal. We continue to invest in new products with alternative fuels. Switch is doing well with an order book of nearly 2000 buses.”
MHCV domestic sales volume was at 25,685 vis-a-vis 29,947 in Q2FY24. LCV volume was at 16,629 vis-a-vis 16,998 in Q2 last year. Export volumes for the quarter at 3310 nos. was higher by 14 per cent. Defence, Power Solutions and Aftermarket Businesses continue to perform well and are expected to post good growth in the current fiscal. The company continued to expand its innovative product offerings in Q2 by launching new products in Tipper, Bus, Haulage and LCV segments.
The board of directors of the company declared an interim dividend of Rs 2 per equity share of Re 1 each, for the financial year ending 2024-25. The said interim dividend would be paid on or before December 7, 2024. The record date for the purpose of determining the members eligible to receive interim dividend is Tuesday, November 19, 2024, it said.
Ashok Leyland Ltd on Friday reported its fiscal second quarter profit at Rs 770.10 crore, registering a growth of 37.3 per cent in comparison to Rs 561.01 crore during the second quarter of FY24. It posted revenue from operations at Rs 8,768.83 crore, down 9.0 per cent as against Rs 9,638.04 crore recorded during the same period of previous financial year. The company EBITDA stood at Rs 1,017 crore, up 5.8 per cent on-year.
Elara Securities said, “Apollo Hospitals Enterprise’ (APHS IN) Q2FY25 revenue/EBITDA/PAT came in 3%/4%/9% above our estimates. The performance was driven by superior growth and margin in Hospitals (HSG) and the Health & Lifestyle (AHLL) businesses. The performance of the Pharmacy business (Health Co) was broadly as expected. The Hospitals business benefited in Q2 from significant volume growth and consequent improvement in occupancy. We continue to expect steady performance. We raise our FY25E-27E core EPS by 1-16%, partly to reflect better performance and partly due to the timing difference in new bed addition. However, after the recent run-up in the stock price, we see little value. Retain Reduce with TP raised to Rs 7,271.”
India Cements Ltd on Friday announced its fiscal second quarter earnings with a widened loss of Rs 339.15 crore in comparison to Rs 85.54 crore during the same period of previous financial year. It posted revenue from operations at Rs 1031.80 crore, down 18.4 per cent as against Rs 1264.39 crore during the second quarter of FY24.
The company board also declared an interim dividend of Rs 3 per equity share (30 per cent) for the financial year ending 31st March, 2025. The Company has fixed Tuesday, 19th November, 2024 as the record date for the purpose of payment of interim dividend. The interim dividend declared will be paid on or after 29th November, 2024.