Q2 Earnings 2024: With many major companies across sectors, including Tata Consultancy Services (TCS), HCL Technologies, Reliance Industries, Bank of Maharashtra, HDFC Life Insurance, PVR Inox, and others, having already released their Q2 results, the second quarter earnings season is now slowly starting to take a full acceleration. Today, Bajaj Auto, L&T Technology Services, Mphasis, CRISIL, South Indian Bank, Aditya Birla Money, Tips Music, and others are releasing their quarter earnings report.
Earlier, Reliance Industries Ltd (RIL) posted a profit decline of 4.8 per cent on-year at Rs 16,563 crore and revenue at Rs 235,481 crore. HCL Tech recorded Q2 profit at Rs 4,237 crore, up 10.5 per cent YoY and revenue at Rs 28,862 crore. Meanwhile, TCS reported Q2 profit at Rs 11,909 crore, up 5.0 per cent YoY and revenue at Rs 64,259 crore.
Amish Mehta, Managing Director and CEO, CRISIL Ltd, said, “Global growth patterns are diverging, with the US slowing, the Eurozone recovering, and India displaying robust GDP growth. Geopolitical uncertainties remain a risk. Our businesses have demonstrated resilience, 'focusing on developing core capabilities through our domain-led IP and digital initiatives, and remain committed to creating long-term value for our stakeholders. We are investing in new-age technologies, including Gen Al, and have successfully deployed a Gen Al Credit Assessment solution for our global clients.”
CRISIL Board of Directors has also approved the payment of a third interim dividend of Rs 15 per equity share of face value of Re 1 each, for the financial year ending December 31, 2024, which will be paid on November 13, 2024.
CRISIL Ltd on Wednesday reported its fiscal second quarter profit at Rs 171.55 crore, up 12.9 per cent in comparison to Rs 151.99 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 811.84 crore, posting a growth of 10.3 per cent as against Rs 735.87 crore during the second quarter of previous financial year. The company EBITDA stood at Rs 223.8 crore, up 16.7 per cent YoY.
Bajaj Auto also announced that its board of directors approved the additional investment in the equity share capital of Bajaj Brazil, a wholly owned subsidiary of the company of up to $10 million (equivalent to Rs 84 crore) in a phased manner. The additional capital infusion by Bajaj Auto Limited in Bajaj Brazil is to fund for business expansion and the needs of the growing business, it said.
Bajaj Auto Ltd on Wednesday reported its fiscal second quarter consolidated profit at Rs 1,385.44 crore, posting a drop of 31.4 per cent in comparison to Rs 2,020.05 crore during the corresponding quarter of FY24. It recorded revenue from operations at Rs 13,247.28 crore, up 22.2 per cent as against Rs 10,838.24 crore during the same quarter of previous financial year.
On a standalone basis, profit for the quarter in review stood at Rs 2,005.04 crore, up 9.2 per cent from Rs 1,836.14 crore during Q2FY24. The company EBITDA stood at Rs 2,652.4 crore.
During the quarter, LTTS won two $20 million and four $10 million TCV deals. Additionally, the company won two significant empanelment agreements in Sustainability.
Further, at the end of Q2FY25, the patents portfolio of L&T Technology Services stood at 1,394, out of which 877 are co-authored with its customers and 517 are filed by LTTS.
Amit Chadha, CEO & Managing Director, L&T Technology Services Limited, said, “We had strong sequential growth of 4% in Q2 led by Sustainability at 6.5% on the back of earlier large deals and empanelment agreements. Mobility also had a strong showing with 5% growth driven by our differentiated story on SDV and hybridization. We are seeing an uptick in AI-led deal conversations, and our portfolio of AI solutions & accelerators is helping win deals in our focus areas across segments. We have filed a total of 165 patents in AI till date. With our pipeline comprising larger sized deals involving consolidation as well as advanced technology led transformation, we are confident about the vision we set for ourselves and our medium-term outlook of $2 billion revenue with an EBIT margin of 17-18%.”
The company board also announced an interim dividend of Rs 17 per equity share. “The Interim Dividend shall be paid to equity shareholders of the company whose names will appear in the register of members or in the records of the depositories as beneficial owners of equity shares as on Friday, October 25, 2024, which is the Record Date fixed for the aforesaid purpose,” L&T Tech said in a regulatory filing.
L&T Technology Services Ltd on Wednesday released its fiscal second quarter earnings with profit at Rs 319.60 crore, up 1.3 per cent in comparison to Rs 315.40 crore during the corresponding quarter of FY24, missing estimates. It posted revenue from operations at Rs 2572.90 crore, up 7.8 per cent as against Rs 2386.50 crore during the same period of previous financial year. According to a CNBC TV18 poll, L&T Technology Services was expected to record Q2 profit at Rs 337.6 crore.
At the end of Q2FY25, LTTS’ employee strength stood at 23,698.
A report by Centrum Broking said, “HDFC AMC had a strong quarter with QAAUM increasing 45% yoy to Rs 7.6tn, with actively managed equity market having a 63% yoy increase to Rs 4.7tn. The overall market share increased 30bps yoy at 11.5% and actively managed equity QAAUM growing 50bps yoy to 12.9%. Yield stood at 47bps at end Q2FY25 (46bps in H1FY25). PAT grew 32% yoy to Rs 5.8bn impacted by higher taxes (one-off) announced in the budget. The distributor commission was rationalized with effect from August. We roll over valuation to Sep’26 with a revised TP of Rs.4,545 (vs Rs.4,075 earlier), valuing the company at an unchanged multiple of 36x. Maintain the REDUCE rating owing to expensive valuations.”
A report by Sharekhan by BNP Paribas said, “PVR Inox reported strong sequential growth in revenue and operational metrics after a weak Q1FY2025, driven by strong performances from Stree 2, Kalki, and healthy performances from regional and Hollywood movies. However, on a y-o-y basis, ticket sales declined 25.2%, while food and beverage (F&B) sales declined by 18.4% and advertisement income declined by 7.1% owing to exceptionally strong Q2FY24. EBITDA margin (pre Ind-AS116) stood at 11.5%, beating our estimates of 9%. The company reported net profit (pre Ind-AS116) of Rs. 22 crore in Q2FY2025 compared to loss (pre Ind-AS116) of Rs. 137 crore in Q1FY25.
Admissions improved to 38.8 million, up 28% q-o-q, while occupancy improved to 25.7% in Q2FY2025 from 20.3% in Q1FY2025. The company expects Q3 to be the strongest quarter in FY2025 and expects occupancy levels to rise in Q3, Q4, and FY2026. While the content pipeline remains strong for the upcoming quarters, the quality of content would be key in driving and sustaining admits, occupancy levels, and operational metrics.”
Anand Rathi Research Team stated, “The revenue from operations of the company increased by 8.2% year-on-year to Rs 2,88,620 million on a consolidated basis. In constant currency (CC) terms the revenue grew by 6.2% YoY and 1.6% QOQ. This strong growth is aided by a surge in license revenue of software business while digital revenue grew by 7.8% YoY along with manufacturing, BFSI and recovery seen in ER&D services. Going forward for remaining H2 FY25 management expects guided range 0-2% of revenue growth. In 3QFY25, the management expects furlough to remain similar to last year. The company has multiple growth opportunity with focus on data modernization, GenAI stacks, security privacy, cloud engineering and low code capabilities across geographies and verticals.”
Himadri Speciality Chemical Ltd on Wednesday announced that it has recorded a profit of Rs 135.70 crore during the second quarter of FY25, up 34.9 per cent in comparison to Rs 100 62 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1,136.92 crore, up 13.2 per cent as against Rs 1,004 52 crore during the same period of previous financial year. The company EBITDA stood at Rs 208.2 crore, up 32 per cent YoY.
Here are the key companies scheduled to announce their Q2FY25 results this week:
October 17: Majors like Infosys, Wipro, Axis Bank, Nestle India, LTIMindtree, Havells India, Polycab India, Indian Overseas Bank, Jindal Stainless, Tata Communications, Central Bank of India, Tata Chemicals, Karur Vysya Bank, Ceat, Dhanlaxmi Bank, Shemaroo Entertainment, and others will announce their Q2 earnings report.
October 18: Companies like Jio Financial Services, TATA Consumer Products, ICICI Lombard General Insurance Company, Oberoi Realty, L&T Finance, Zee Entertainment Enterprises, and others will release their Q2 results.
October 19: Key firms including HDFC Bank, Kotak Mahindra Bank, Tech Mahindra, Punjab & Sind Bank, Dalmia Bharat, Indiamart Intermesh, RBL Bank, PC Jeweller, and many others will report their Q2FY25 performance.
In an analysis report, Elara Securities said, “Despite HDFC Life Insurance reporting strong annualized premium equivalent (APE) growth (largely led by ULIP, non-par savings and retail protection), value of new business (VNB) margin declined both annually and sequentially. This was due to: a) a deterioration in product mix and b) lag in repricing in the non-par segment. Given challenges in growth due to product revisions, change in distributor arrangement, slowdown in credit life on the back of lower disbursements and competitive pressures in the annuity segment, expect HDFC Life to deliver ~15% APE growth in H2FY25 versus ~25% in H1FY25. Consequently, we expect VNB growth of 13% in H2E. This translates to an APE growth of 19% and a VNB growth of 15% in FY25E (lower end of the guidance).
Expect margin to improve in H2, led by scale benefit, fixed cost absorption and lower competitive intensity in non-par. In the medium term, ULIP mix is expected to moderate further, substituted by rising share of non-par, translating into an APE growth of ~17% and a VNB growth of 18% in FY24-27E.”
South Indian Bank Ltd on Wednesday recorded its fiscal second quarter earnings with profit at Rs 324.79 crore, up 18.2 per cent in comparison to Rs 274.89 crore during the corresponding quarter of previous financial year. The Bank’s NII came in at Rs 882.7 crore, up 6.3 per cent on-year.
In terms of asset quality, the percentage of gross NPA came in at 4.40 per cent during Q2 as compared to 4.96 per cent during the same quarter of FY24. The percentage of net NPA was at 1.31 per cent vs 1.70 per cent YoY.
Analysts said that Reliance Jio’s average revenue per user (ARPU) could reach Rs 250 by FY27 if another round of industry-wide tariff hikes occurs. In Q2FY25, Jio’s ARPU improved to Rs 195.1 from Rs 181.7 in the first quarter of FY25 due to the partial impact of the tariff hikes and better subscriber mix. Analysts expect the next round of industry-wide tariff hikes to occur in FY27. Before this recent hike in July 2024, the industry had implemented collective tariff increases in November-December 2021.
On October 14, Jio released its Q2 numbers with a profit increase of 14.76 pe rcent in the quarter ended September. Its subscriber base, however, fell by 10.9 million on account of SIM consolidation after the telco undertook tariff hikes during the quarter.
On October 14, HCL Technologies reported its fiscal second quarter earnings with profit at Rs 4,237 crore. It posted revenue from operations at Rs 28,862 crore, up 8.2 per cent as against Rs 26,672 crore during the same period of previous financial year.
Elara Securities stated, “HCL Tech’s (HCLT IN) Q2 revenue recovered after a drop in Q1 (early offshoring of a contract). Revenue growth was driven by IT Services (74% of the mix). Margin at the company level was helped by operating leverage and a reduction in SG&A spend in Q2. Based on the current pipeline and H1 performance, HCL Tech has increased the lower end of its FY25 revenue growth guidance to 3.5% in CC from 3% earlier. It has retained the higher end of its guidance at 5%. The ask rate for Q3E/Q4E is 0/2% to achieve the lower/higher revenue guidance respectively, which looks achievable in our view.”
HCL Tech, however, it added, sounded cautious in the medium-term outlook given geopolitical uncertainty as well as muted expectations from the Manufacturing vertical (due to continued stress in the Europe auto space as well as in aerospace vertical, as one of the leader in the airplane production announced job cuts) and BFSI.
Today, companies like Bajaj Auto, L&T Technology Services, Mphasis, CRISIL, South Indian Bank, Aditya Birla Money, Tips Music, Himadri Speciality Chemical, and many others will release their Q2FY25 results.
While few of the major firms like Tata Consultancy Services (TCS), HCL Technologies, Reliance Industries, Tata Elxsi, Avenue Supermarts, Just Dial, Lotus Chocolate Company, HDFC Life Insurance, PVR INOX, have already released their Q2 numbers, the second earnings season is now slowly picking up pace.
Greetings! With the fiscal second quarter earnings season slowly picking up pace, we, at FinancialExpress.com, are continuously bringing you with all the updates on how India Inc performed during the quarter. Going forward as well, through our live blogs, we will keep you updated on what facilitated the healthy performances of firms or even what led to a de-growth. Stay tuned.