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.
MRF Ltd on Friday announced its fiscal second quarter earnings with profit at Rs 470.70 crore, registering a decline of 19.8 per cent in comparison to Rs 586.66 crore during the same period of previous financial year. It posted revenue from operations at Rs 6881.09 crore, up 10.7 per cent as against Rs 6217.10 crore during the second quarter of FY24.
A report by InCred Equities said, “Avalon Technologies (Avalon) reported a better-than-expected performance in 2QFY25, with its revenue at Rs 2.75bn, up 37%, 21% above our estimate and 17% above the Bloomberg or BB consensus estimate. Revenue growth was driven by a strong uptick in clean energy and mobility segments, which were up 98% and 40% YoY, respectively. EBITDA jumped 139% YoY to Rs 301m, 90% above our estimate and 80% above the BB consensus estimate, while the margin expanded by 469bp to 11%. PAT stood at Rs 175m, up 140% YoY, against our estimate of Rs 68m and the BB consensus estimate of Rs 75m. The order book rose by 19% YoY to Rs 14.9bn. A new plant for exports commenced operations. As regards brownfield expansion to meet domestic demand, the phase-2 work is likely to commence early next year. Net working capital days improved from 161 in Mar 2024 to 134 in Sep 2024.”
Shveta Arya, Managing Director, Cummins India Limited, said, “The Indian economy continues to remain resilient despite increasingly intense geopolitical conflicts. GST collections continue to remain strong, indicating robust underlying trade activities, while other key economic indicators like IIP, PMI are pointing to a reasonable economic outlook for the year. With stable fiscal and monetary policies, the Government’s continued emphasis on infrastructure development, and PLI-led capex, the Indian economy is on course for growth in the range of 6.8% to 7.2%, according to various estimates.
Cummins India Limited continues to execute its profitable growth strategy and is well-positioned to meet the demands of its end markets. At the same time, internationally, geopolitical risks and conflicts continue to pose uncertainty about global trade and supply chain disruptions. Effective July 1, 2024, with a complete transition to CPCB IV+ emission norms for the applicable products, the company is well-positioned and had all its products certified well ahead of the time.”
Cummins India Ltd reported a profit of Rs 449.37 crore for the fiscal second quarter, registering a growth of 36.5 per cent in comparison to Rs 329.09 crore during the same period of previous financial year. It posted revenue from operations at Rs 2528.60 crore, up 31.6 per cent as against Rs 1921.55 crore during the same period of FY24.
On a standalone basis, total sales for the quarter came in at Rs 2448 crore, higher by 31 per cent compared to the same quarter last year.
While the domestic sales for the quarter stood at Rs 2008 crore, exports sales came in at Rs 440 crore.
Mahindra & Mahindra’s (MM IN) Q2 revenue rose by 12.9% YoY and 1.9% QoQ to Rs 275.5bn, marginally above our estimates.
A report by Elara Securities stated, “Given positive sentiments for the Farm segment driven by above-normal monsoons, FY25 guidance for the Tractor space has been raised to 6-7% (from 5%). For UVs, MM has retained its previous guidance of mid-to-high teen growth, led by positive response to new model launches. Going forward, timely arrival in mandis and government support should aid momentum for tractors in H2. Strong retail growth in the festive season has led to reduction in inventory level to <30 days. MM is well poised to benefit from strong demand in the UV segment with the launch of new models born electric (BEVs) in the near term, such BE 6E and XEV 9E.”
A report by Motilal Oswal Financial Services (MOFSL) stated, “Page Industries (PAGE) reported sales growth of 11% in Q2FY25 with healthy 7% YoY volume growth. Demand improved sequentially, but a full recovery would be visible in H2FY25. Demand uptick during the festive season has helped to further liquidate trade inventory by 3 days. The implementation of ARS system has been driving inventory efficiency for distributors, resulting in better secondary order fulfillment. E-commerce channels continue to outpace overall brand growth, mainly led by quick commerce.”
Indian Hotels Company Ltd reported strong results above expectations, with consolidated revenue/EBITDA growth of 27.4%/64.8% YoY, exceeding our projections.
Axis Securities said, “We believe the hospitality cycle has more momentum, likely to be driven by a relatively constrained supply of rooms and an increase in Foreign Tourist Arrivals (FTAs), which remain below pre-COVID levels (10.56 Mn in 2019 vs. 9.24 Mn in FY24). The increase in FTAs is expected to positively impact ARRs. Additionally, the steady rise of the Indian middle class and their increased spending power is projected to contribute an additional Rs 5,200 crore annually to the hospitality market.”
Elara Securities said, “NCC (NJCC IN) reported in-line H1 performance and is on track to achieve its FY25 guidance despite Q1 inflows being hit by elections and Q2 execution by monsoons. With a strong, new order pipeline, expects inflows to pick up and execution to speed up in H2. Debt was elevated as of H1 at Rs 17bn versus Rs 10bn in March ’24. However, with the rise in project collections and recovery of loans to subsidiaries, leverage is targeted to reduce in H2. We maintain Accumulate with TP unchanged at Rs 370, based on P/E of 16x as we roll-forward estimates to FY27E. Expected healthy earnings CAGR of 28% in FY24-27E. The key risk is that 38% of the orderbook and 42% of H1 order flow is concentrated in a single state, Maharashtra.”
Axis Securities said, “FY26 is likely to be a Capex light for Tata Steel as KPO-II Capex will be near completion in FY25 and Capex for UK EAF transition for the next 18-24 months will not be significant and will pick up only towards the last 12-16 months. Capex at TSN for the DRI-EAF green steel transition will begin only in the next 12 months. WC management and De-leveraging (target of $1 Bn/annum) will remain critical in FY26 as Capex intensity reduces before it picks up again in FY27. Net debt has already increased to Rs 88,817 Cr as of Q2FY25 with Net Debt to EBITDA jumping to 3.41x from 3.31x at the end of FY24.”
Today, majors including SBI, LIC, 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 results.
With majors across sectors including Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Bharti Airtel, HUL, ITC, Marico, Dabur India, Adani Wilmar, Nestle India, Zomato, Paytm, ICICI Bank, HDFC Bank, Kansai Nerolac Paints, Mankind Pharma, Dr Reddy’s Laboratories, Apollo Hospitals, Mahindra and Mahindra, Trent, Cummins India, Lupin, Aditya Birla Fashion & Retail, Maruti Suzuki, already having released their Q2 numbers, the second quarter earnings season has picked up pace and is now in full swing.
Greetings! The quarter earnings season is not in full swing and we, at FinancialExpress.com, are continuously bringing to you all the updates on performance of India Inc across sectors. 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.