Q2 Earnings 2024: The fiscal second quarter earnings season is in full swing now with many major firms and all of the IT services giants having released their Q2 results. Firms like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Bank of Maharashtra, Nestle India, Axis Bank, HDFC Bank, LTIMindtree, Havells India, Tata Communications, PVR Inox, Bajaj Auto, L&T Technology Services, Mphasis, Cyient DLM, Mahindra Logistics, among many others have released their Q2 earnings already.
Today, companies like Bajaj Finance, One 97 Communications Paytm, Adani Green Energy Limited, Zomato, Varun Beverages, Adani Energy Solutions, ICICI Prudential Life Insurance Company, Persistent Systems, SRF, COFORGE LIMITED, Max Financial Services, Mahindra & Mahindra Financial Services, ICICI Securities, Jubilant Ingrevia, Shoppers Stop, Goodyear India, IIFL Securities, among others are lined up to release their Q2 earnings report.
Earlier, Reliance Industries Ltd (RIL) had 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. TCS reported Q2 profit at Rs 11,909 crore, up 5.0 per cent YoY and revenue at Rs 64,259 crore. Infosys recorded Q2 profit at Rs 6506 crore and revenue at Rs 40,986 crore. Wipro, meanwhile, reported fiscal second quarter profit at Rs 3226.60 crore, up 21.0 per cent YoY and revenue at Rs 22,301.60 crore.
This week, other key players like HUL, ITC, Godrej Consumer Products, Adani Wilmar, Patanjali Foods, TVS Motor, NTPC, Coal India, JSW Steel, and others will announce their Q2 numbers.
Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent, said, “We are proud to announce the 18th sequential quarter of revenue growth, delivering $345.5M revenue, an 18.4% increase year-over-year. In the same period, our PAT grew by 23.4% in rupee terms. This quarter, we continued to strengthen our capabilities and advance our AI-led, platform driven services strategy. We brought on Starfish Associates to elevate our AI-powered contact center modernization; the addition of Arrka expands our comprehensive offerings in digital governance, including data privacy, AI governance, and cybersecurity.”
Persistent Systems Ltd on Tuesday released its fiscal second quarter earnings with profit at Rs 325.00 crore, up 23.4 per cent in comparison to Rs 263.27 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 2897.15 crore, up 20.1 per cent as against Rs 2411.67 crore during the same period last year.
The order booking for the quarter ended on September 30, 2024, was at $529.0 million in Total Contract Value (TCV) and at $348.3 million in Annual Contract Value (ACV) terms.
Mahindra & Mahindra Financial Services Ltd on Tuesday reported a profit of Rs 389.42 crore for the second quarter of FY25, posting a growth of 38.5 per cent in comparison to Rs 281.09 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 4,465.15 crore, up 16.5 per cent as against Rs 3,833.25 crore during the same period of previous financial year.
On a standalone basis, profit came in at Rs 369.47 crore. The company NII stood at Rs 1,963.2 crore.
In terms of asset quality, Gross NPA came in at 3.83 per cent and net NPA was at 1.59 per cent.
The company’s board also approved Rs 8,500-crore fundraising via the issue of a qualified institutional placement (QIP), despite having a strong balance sheet. Deepinder Goyal, CEO of Zomato, said, “While the business is now generating cash, we believe that we need to enhance our cash balance given the competitive landscape and the much larger scale of our business today.”
Zomato posted GOV growth improvement across its B2C businesses by 55 per cent YoY at Rs 17,670 crore in Q2FY25. On a like-for-like basis (excluding the impact of the acquisition of Paytm’s entertainment ticketing business), GOV growth was 53 per cent YoY.
- Food delivery GOV grew 21% YoY.
- Quick commerce GOV grew 122% YoY.
- Going-out GOV grew 171% YoY
Meanwhile, its B2B business Hyperpure’s revenue grew by 98 per cent YoY; and consolidated adjusted revenue grew 58 per cent YoY to Rs 5,127 crore, broadly in line with GOV growth.
Food delivery major Zomato on Tuesday posted a profit surge of 388.9 per cent during the fiscal second quarter at Rs 176 crore in comparison to Rs 36 crore recorded during the corresponding quarter of previous fiscal year. It recorded revenue from operations at Rs 4799 crore, up 68.5 per cent as against Rs 2848 crore during the same period of FY24. The company EBITDA stood at Rs 226 crore Vs EBITDA loss of Rs 47 crore YoY.
The company board, on the recommendation of the Nomination, Remuneration and Compensation Committee, considered and approved the proposal for appointment of Vijay Srivastava as Chief of Operations & Whole-time Director of the company, effective from November 1, 2024 for a period of 5 years.
Vijay has more than 25 years of experience in Manufacturing across various industries including Petrochemicals, Engineering Polymers, Agro Chemicals, Organic & Inorganic Intermediates. He started his career with UPL and has spent significant time at Du Pont in India and abroad. He has also worked with Deepak Nitrite and S.I. Group at various leadership roles. He was appointed as President – Operations for Jubilant Ingrevia Limited w.e.f. 29th March 2022.
The company said, “We expect to see improvements in our overall business performance in FY25, particularly within Specialty Chemicals and Nutrition & Health Solutions segments. Consistent with the last few quarters, our primary focus remains on customer-centricity, utilising the newly commissioned plants, enhancing operational efficiency leading to further improvement in margins. We expect sequential improvement in performance in Q3 and Q4, with H2FY25 to be even better vs. H1FY25. We are committed to our growth plans through our ambitious Pinnacle 345 vision of achieving three times revenue and four times EBITDA within five years.”
Jubilant Ingrevia Ltd on Tuesday reported a profit of Rs 59.00 crore during the fiscal second quarter, posting a growth of 12.4 per cent in comparison to Rs 52.49 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1045.24 crore, up 2.5 per cent as against Rs 1019.94 crore during the same period of previous financial year. The company EBITDA stood at Rs 124.6 crore, up 6 per cent YoY.
The company chairman said, “Despite the sustained softness in domestic demand, our tile volumes in Q2FY25 grew by 8.5% YoY to 28.70 MSM. EBITDA margins remained soft at 13.5% for the quarter driven by muted margins reported by the bathware division which was largely attributable to losses incurred in the recently commissioned sanitaryware unit in Morbi and additional overheads incurred by Keronite unit in the tiles division which commenced operations during the quarter. PAT for the quarter de-grew by 22% to Rs 84 crore in Q2FY25 as compared to Rs 108 crore in Q2FY24. We continue to maintain a positive demand outlook for the tile industry. With the rub-off of strong real estate demand likely to drive improvement in off-take for tiles in H2FY25, we expect the tiles industry to fare much better than it did in H1FY25.”
The company recommended an interim dividend of Rs 5 per share of Re 1 each for the financial year 2024-25 and announced Monday, November 4, 2024 as the record date for determining entitlement of members of the company to the aforesaid interim dividend. The payment of the said interim dividend will be made on/before November 20, 2024, it said.
Kajaria Ceramics Ltd on Tuesday reported its fiscal second quarter earnings with profit at Rs 85.54 crore, posting a decline of 22.8 per cent in comparison to Rs 110.82 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1179.27 crore, up 5.1 per cent as against Rs 1121.62 crore during the same period of previous financial year. The company EBITDA stood at Rs 158.9 crore, down 11.6 per cent YoY.
The company also announced that its Board of Directors, on recommendation of Nomination and Remuneration Committee, has approved the appointment of Sukanya Kripalu as an Independent Director of the Company for the first term of 5 years commencing from 30th October, 2024 to 29th October, 2029. Sukanya Kripalu is a consultant in the fields of marketing, strategy, advertising and market research. Her experience includes working with companies such as Nestle India Limited and Cadbury India Limited. She was also the CEO of Quadra Advisory, a WPP plc group Company.
Aditya Birla Real Estate Ltd on Tuesday reported its fiscal second quarter earnings with profit at Rs 2.82 crore in comparison to a loss of Rs 32.67 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 1127.56 crore, up 30.7 per cent as against Rs 862.93 reported during the second quarter of previous financial year. The company EBITDA stood at Rs 88 crore, up 60 per cent
MP Taparia, Managing Director, The Supreme Industries Limited, said, “Plastic Pipe Systems business growth was severely affected due to extreme volatility in PVC resin prices, low spending on infrastructure in the first six months by Governments and extended monsoon. Due to Red sea shipment movement blockage, the container productivity went down extremely. It led to a steep freight increase from Asian countries to India. 66% demand of PVC resin in India is met from imports. Out of that volume, more than 80% of import is coming from Asian countries. This has led to an increase in the cost of PVC resin between Mid-April to 30th June by 19%.
As the freight rates moved down, the prices took a deep cut between 1st July to 16th August. The prices then went down by 17.5%. This type of price volatility in a very short period led to deep de-stocking in the entire trade channel. As the rainy season got extended, the demand revival for Agricultural pipe also remained subdued in the month September. The Government spending on Infrastructure also had gone down in the first half of this fiscal year. Thus, the Company has revised its guideline of 25% volume growth in Plastic Pipe System to be between 16 to 18% for this year.”
The company board also declared an interim dividend at 500 per cent, i.e., Rs 10 per share of equity shares of Rs 2 each for the financial year 2024-25. The company has fixed Wednesday, the 30th October, 2024, as the record date for the purpose of ascertaining the eligibility of the shareholders for payment of interim dividend.
Supreme Industries Ltd on Tuesday reported its fiscal second quarter profit at Rs 206.60 crore, down 15 per cent in comparison to Rs 243.19 crore during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 2272.95 crore, down 1.5 per cent as against Rs 2308.69 crore during the same period of FY24. The company EBITDA stood at Rs 319.2 crore, down 10.4 per cent YoY.
Ravi Jaipuria, Chairman, Varun Beverages Limited, said, "We are pleased to report another strong quarter, despite the challenges posed by excessive rainfall in India. We achieved consolidated revenue growth of 24.1%, including contributions from BevCo, driven by our expanded distribution network, increased product penetration, and favorable demand trends in key markets. Enhanced operating efficiencies led to an improvement of 117 bps in our EBITDA margins, resulting in a robust 30.5% growth in EBITDA, and a healthy 22.3% growth in PAT for the quarter.”
Varun Beverages Ltd on Tuesday reported a profit growth of 23.7 per cent for the third quarter of 2024 at Rs 619.61 crore in comparison to Rs 501.07 crore recorded during the corresponding quarter of last year. It posted revenue from operations at Rs 4932.06 crore, up 25.3 per cent as against Rs 3937.76 crore during the same period of previous year. The company EBITDA increased by 30.5 per cent to Rs 1151.12 crore.
The company said that heavy rains throughout the quarter led to India volumes growing in mid-single digits i.e. 5.7 per cent and international volumes grew by 7.9 per cent organically.
Capex for H1FY25 was Rs 97 crore, versus Rs 477 crore in H1FY24 and Rs 336 crore in H2FY24. Lower capex, Paytm said, is largely on account of reduction in cost of devices, use of refurbished devices for redeployment (cost of refurbished devices are included in other indirect costs) and lower deployments.
In Q2, revenue from financial services and others was Rs 376 crore, up 34 per cent QoQ. Strong revenue growth was because of increase in collection bonus in merchant loans and higher share of merchant loans which have higher take rate. “As explained earlier, we see a large opportunity to monetise our payment customers (consumer and merchant) by cross selling financial services. In this quarter, 6.0 lakh customers availed financial services, which has a large headroom for growth,” it said.
In Q2FY25, payments revenue was Rs 981 Cr, up 9 per cent QoQ, led by increase in GMV, focus on monetisation and increase in merchant subscriptions. No UPI incentive was received during the quarter as it gets paid in Q4 of the financial year. Net payment margin was higher by 21 per cent QoQ at Rs 465 crore.
Net payment margin is comprised of:
Payment Processing Margin: In Q2, GMV was Rs 4.5 lakh crore, up 5 per cent QoQ.
Subscription revenues: As of September 2024, merchant subscriptions were 1.12 crore.
In Q2 FY 2025, Paytm achieved 11 per cent QoQ revenue growth, due to 5 per cent QoQ increase in GMV, better realization from devices and 34 per cent QoQ increase in revenues from financial services. “Our net payment margin increased 21 per cent QoQ to Rs 465 crore, largely on account of improvement in payment processing margin, better device realization and growth in GMV,” it said.
The company recorded financial services revenue at Rs 376 crore, up 34 per cent QoQ, on account of increase in collection bonus in merchant loans due to better asset quality trends, and higher share of merchant loans.
“With even greater confidence in our merchant loan distribution business, where we help in both distribution and collection, we have started working with select lenders by giving the Default Loss Guarantee (DLG, explained in subsequent sections) for select portfolios. This in the long term will give us an opportunity to serve a wider merchant base and increase our financial services distribution revenue,” the company said.
One 97 Communications Ltd, the parent company of Paytm, on Tuesday announced that it recorded a profit of Rs 928.30 crore during the second quarter of FY25, in comparison to a loss of Rs 290.50 crore during the corresponding quarter of previous financial year. “With one-time exceptional gain of Rs 1,345 crore, on account of sale of entertainment ticketing business, we achieved PAT of Rs 930 crore in Q2 FY 2025,” the company said. It posted revenue from operations at Rs 1659.50 crore, down 34.1 per cent as against Rs 2518.60 crore during the same period of FY24. The company EBITDA went down at Rs 404 crore, posting an improvement of Rs 388 crore QoQ.
InCred Equities report said, “Ultratech Cement’s Q2FY25 consolidated sales volume grew by ~4% yoy to 32mt. As per UTCEM, H1 was below par due to heat wave, general elections in India and higher monsoon rains during the year. However, it expects H2FY25F to be better, with rural demand already showing signs of a recovery which will benefit further from healthy monsoons. It doesn’t expect any slowdown in cement demand in India and a long-term growth rate of 7-8% seems sustainable, driven by India’s economic growth. UTCEM highlighted that it has gained market share in southern and eastern regions of India and will be chasing profitable growth. The company expects double-digit volume growth for the industry in H2FY25F and maintained its guidance to outperform the industry.”
Elara Securities report said, “While near-term demand remains soft dragging sales growth, Tata Consumer Products’ average selling price (ASP) increase in the tea business and growth momentum revival in NourishCo would be critical for improving sales growth and margin. We believe increased competition coupled with slower growth in the urban markets are key near-term headwinds. However, we favor Tata Consumer for its wide product offerings and possible gains from distribution expansion, which would provide visibility on double-digit sales growth and margin expansion in the long term.”
Today, companies like Bajaj Finance, One 97 Communications Paytm, Adani Green Energy Limited, Zomato, Varun Beverages, Adani Energy Solutions, ICICI Prudential Life Insurance Company, Persistent Systems, Max Financial Services, Mahindra & Mahindra Financial Services, ICICI Securities, Jubilant Ingrevia, Shoppers Stop, Goodyear India, IIFL Securities, among others will release their Q2 earnings report.
With majors like like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Tech Mahindra, Reliance Industries, Nestle India, Tata Elxsi, Avenue Supermarts, Lotus Chocolate Company, Axis Bank, HDFC Bank, HDFC Life Insurance, PVR INOX, Bajaj Auto, L&T Technology Services, Mphasis, Mahindra Logistics, Tata Communications, having already released their Q2 numbers, the second earnings season is now in full swing.
Greetings! We, at FinancialExpress.com, are continuously bringing all the updates on the performance by companies across sectors during the fiscal second quarter. With majors like TCS, HCL Technologies, Infosys, Wipro, Tech Mahindra, Nestle, HDFC Bank, and others already having released their earnings report, the results season is in full swing now. Going forward as well, we will keep updating on how India Inc performed during Q2, what helped the growth and what led to de-growth. Stay tuned.