Q2 Earnings 2024: The fiscal second quarter earnings season is in full swing now with majors like Tata Consultancy Services (TCS), HCL Technologies, Reliance Industries, Bank of Maharashtra, HDFC Life Insurance, PVR Inox, Bajaj Auto, L&T Technology Services, Mphasis, and many others having already released their quarter results. This week as well, a number of firms like Jio Financial Services, Tata Consumer Products, ICICI Lombard General Insurance Company, Oberoi Realty, L&T Finance, HDFC Bank, Kotak Mahindra Bank, Tech Mahindra, RBL Bank, PC Jeweller, and many others will report their Q2FY25 performance.
As for today, market participants and investors are looking forward to Q2 results announcements by Wipro, Infosys, Axis Bank, Nestle India, LTIMindtree, Havells India, Tata Communications, Central Bank of India, Ceat, Dhanlaxmi Bank, Polycab India, Indian Overseas Bank, Jindal Stainless, Tata Chemicals, Karur Vysya Bank, Shemaroo Entertainment, and many more.
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. Meanwhile, TCS reported Q2 profit at Rs 11,909 crore, up 5.0 per cent YoY and revenue at Rs 64,259 crore.
Amitabh Chaudhry, MD & CEO, Axis Bank, said, “This quarter we balanced digital prowess and advancement with physical expansion and proximity to our customers. We have opened 150 new branches in the last three months, both urban and rural. The Bank strengthened its regional presence by laying the foundation for a new Corporate Office in Kolkata, which will be the hub for all activities in the Eastern region. We also expanded our private banking business ‘Burgundy Private’ network to 15 new cities increasing its presence to 42 locations across India, offering bespoke wealth management services in India's rapidly evolving Tier 2 markets.”
Axis Bank on Thursday reported its fiscal second quarter earnings with standalone profit at Rs 6917.57 crore, up 18 per cent in comparison to Rs 5863.56 crore. Total income during the quarter was recorded at Rs 37.14 thousand crore. The Q2FY25 NII stood at Rs 13,483 crore, up 10 per cent YoY. Net Interest Margin (NIM) for Q2FY25 stood at 3.99 per cent.
The Bank’s balance sheet grew 12 per cent YOY and stood at Rs 15,05,658 crore as on 30th September 2024. The total deposits grew by 14 per cent YoY on month end basis, of which current account deposits grew 8 per cent YOY and saving account deposits grew 2 per cent YOY; total term deposits grew 21% YOY. The share of CASA deposits in total deposits stood at 41 per cent.
Biswajit Maity, Senior Principal Analyst, Gartner, said, “Infosys’s financial results show a decent QoQ growth of 3.1%. We’ve consistently emphasized that this year will see growth in general. Infosys has managed its fiscal position well so far. Over recent years, Infosys has successfully attracted a growing number of large deals through an effective large-deal pursuit strategy.”
“The company has secured several large, multiyear deals, building on a strong track record of delivering core services while expanding its digital offerings. Infosys is actively working to shift its image from being seen as merely a low-cost technology service provider to a leading business transformation partner. Infosys does a good job building relationships with its strategic clients, as evidenced by its ability to win large, long-term deals. It does, however, need to ensure that it brings its innovation capabilities to all its clients, irrespective of size. In addition, Infosys must focus on t attrition rates although it has had improved year-over-year, it still if compared to the previous quarter its slightly high,” he added.
Tata Chemicals Ltd on Thursday recorded fiscal second quarter profit at Rs 267 crore, posting a decline of 46.1 per cent in comparison to Rs 495 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 3,999 crore, marginally higher than Rs 3,998 crore reported during the same period of previous financial year. The company EBITDA stood at Rs 618 crore, down 24.5 per cent YoY.
Inder T Jaisinghani, Chairman and Managing Director, Polycab India Limited, said, “We have concluded the first half of the financial year on a strong note, delivering our highest-ever second quarter and half yearly revenues and profit, driven by robust market demand. Further, CRISIL has upgraded its rating on our long-term bank facilities to “CRISIL AAA/Stable” reflecting our strong financial performance, market leadership position, and sustained growth prospects. Looking ahead, we expect the demand momentum to continue, supported by increased government spendings, continued investment by private players and robust real estate offtake. With a strong focus on operational excellence, we stand well positioned to capitalise on the emerging opportunities and drive steady growth.”
Polycab India Ltd recorded a profit growth of 3.6 per cent to Rs 445.21 crore for the second quarter of FY25 in comparison to Rs 429.77 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 5498.42 crore, up 30.4 per cent as against Rs 4217.70 crore during the same period of previous financial year, on the back of robust growth across business segments. The company EBITDA stood at Rs 631.5 crore.
LTIMindtree said that it employed 84,438 professionals as of Sep 30, 2024 and the company had added 2,504 peiple in Q2. It said that the trailing 12 months attrition stood at 14.5 per cent.
Debashis Chatterjee, Chief Executive Officer and Managing Director, LTIMindtree, said, “Q2 was a good quarter marked by broad-based sequential growth experienced across all our verticals and geos, helping us register a dollar growth of 2.8%. We had several multi-year deal closures, including a USD 200 million+ deal. Continued deal momentum in key verticals and significant Q2 hiring, including freshers, positions us well as we enter into the latter half of the fiscal year. As GenAI becomes pivotal in customer interactions, there is a noticeable trend of modernization efforts focusing on transforming the data estate. Our robust Data practice, combined with our innovative LTIMindtree AI platform, establishes us as a significant disruptor.”
LTIMindtree board also declared an interim dividend of Rs 20 per equity share of Re 1 each. “The interim dividend shall be paid within 30 days of declaration to those shareholders whose name will appear in the Register of Members or in the list of Beneficial Owners provided by the Depositories as on Friday, October 25, 2024, being the ‘Record Date’ fixed for the purpose,” it said in a regulatory filing.
LTIMindtree Ltd on Thursday recorded its fiscal second quarter earnings with profit at Rs 1251.60 crore, posting a growth of 7.7 per cent in comparison to Rs 1162.30 crore during the corresponding quarter of FY24, surpassing estimates. It posted revenue from operations at Rs 9432.90 crore, up 5.9 per cent as against Rs 8905.40 crore during the same period of previous financial year. The company EBITDA stood at Rs 1458.1 crore
According to a CNBC TV18 poll, LTIMindtree was expected to record Q2 profit at Rs 1227 crore and revenue for the quarter was estimated at Rs 9450 crore.
Wipro said that the total bookings was recorded at $3,561 million. Large deal bookings, it added, was at $1,489 million, an increase of 16.8 per cent YoY in constant currency.
Wipro also announced a bonus share issue in proportion of 1:1, i.e., 1 bonus equity share of Rs 2 each for every 1 fully paid-up equity share held and a bonus issue [stock dividend on American Depositary Share (ADS)] of 1 ADS for every 1 ADS held, as on the record date, subject to approval of the Members of the Company.
Aparna Iyer, Chief Financial Officer, Wipro, said “I am pleased with our performance across all parameters including Revenue, Bookings, Operating margin, cash flow and EPS. On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8 per cent QoQ. Our operating cash flow continues to be robust at 132.3 per cent of net income in Q2. As a result, cumulatively in the first half of this year we generated nearly $1 billion in operating cash flow.”
Srini Pallia, CEO and Managing Director, Wipro, said, “Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed $1 billion once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, Consumer and Technology and Communications sectors. We will continue to invest in our clients, our strategic priorities, and building a strong AI powered Wipro.”
Wipro expects revenue from its IT Services business segment to be in the range of $2,607 million to $2,660 million at the end of December 2024 quarter. This translates to sequential guidance of (-) 2.0 per cent to 0.0 per cent in constant currency terms, it said.
Wipro on Thursday recorded a profit of Rs 3226.60 crore for the second quarter of financial year 2024-25, posting a growth of 21.0 per cent in comparison to Rs 2667.30 crore during the corresponding quarter of previous financial year. It postd revenue from operations at Rs 22,301.60 crore, recording a drop of 1.0 per cent from Rs 22,515.90 crore during the same period of FY24. The company said that its IT services segment reported revenue at $2,660.1 million, down 2.0 per cent YoY.
Infosys board also declared an interim dividend of Rs 21 per equity share and fixed October 29, 2024 as a record date and November 8, 2024 as a payout date.
Jayesh Sanghrajka, CFO, Infosys, said, “We continue to focus on accelerating revenue growth with a sharp focus on margin performance. Operating margins for the quarter was at 21.1 per cent, driven by continued benefits from value-based pricing and utilization despite higher employee payouts. Our focus on cash generation resulted in another quarter of over 100 per cent Free Cash Flow conversion to net profits. The Board announced an interim dividend of Rs 21 per share, 16.7per cent increase from last year.”
Infosys’ FY25 revenue guidance was revised to 3.75- 4.50 per cent and the margin guidance was retained at 20- 22 per cent.
Salil Parekh, CEO and MD, Infosys, said, “We had strong growth of 3.1% quarter-on-quarter in constant current in Q2. The growth was broad based with good momentum in financial services. This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us.”
He further added, “Our large deals at $2.4 billion in Q2 reflect our differentiated position. I am grateful to our employees for their unwavering commitment to our client as we further strengthen our market leadership.”
Infosys on Thursday posted its fiscal second quarter earnings report with profit at Rs 6506 crore, up 4.7 per cent in comparison to Rs 6212 crore during the corresponding quarter of FY24, missing estimates. It posted revenue from operations at Rs 40,986 crore, up 5.1 per cent as against Rs 38,994 crore recorded during the samme period of previous financial year.
According to a CNBC TV18 poll, Infosys is expected to record Q2 profit at Rs 6755 crore and the revenue for the quarter in review is estimated at Rs 40,878 crore.
In terms of asset quality, Indian Overseas Bank recorded gross NPA at 2.72 per cent as against 4.74 per cent YoY. Percentage of net NPA, meanwhile, came in at 0.47 per cent from 0..68 per cent on-year. Provisions for the quarter was recorded at Rs 1,146.3 crore vs Rs 1,044.2 crore YoY.
Indian Overseas Bank on Thirsday posted a profit of Rs 779.62 crore during the fiscal second quarter of FY25, recording a growth of 24.3 per cent in comparison to Rs 627.18 crore during the corresponding quarter of previous fiscal year. It recorded total income during the quarter at Rs 8489.90 crore, up 22.3 per cent as against Rs 6941.50 crore during the same period of FY24.
On a standalone basis, Indian Overseas Bank recorded Q2 profit at Rs 777.16 crore, up 24.4 per cent as against Rs 624.58 crore during Q2FY24. The NII for the quarter came in at Rs 2537.3 crore, up 8.2 per cent YoY.
Havells’ switchgears category recorded Q2 revenue at Rs 551.26 crore. The company said the the switches and domestic switchgear recorded decent growth during the quarter, however industrial switchgear (IP) growth was impacted by higher base due to large institutional orders last year.
Cable category posted revenue at Rs 1,805.15 crore. Havells said that strong volume growth in th Cables segment was predominantly driven by wire, which was also aided by spillover from Q1 destocking.
Lighting & Fixtures segment reported Q2 revenue at Rs 395.07 crore and per Havells, robust volume growth sustained in Lighting, with the pricing gradually stabilising.
Electrical Consumer Durables business recorded revenue at Rs 856.40 crore with broad-based performance in ECD as festive led demand pickup supported fans, SDA and water heater growth.
Meanwhile, Lloyd Consumer reported revenue during the quarter at Rs 589.59 crore, which is usually a non-seasonal quarter.
Havells India Ltd onm Thursday recorded its fiscal second quarter profit at Rs 267.77 crore, posting a growth of 7.5 per cent in comparison to Rs 249.08 crore during the corresponding quarter of FY24, missing estimates. It posted revenue from operations at Rs 4,539.31 crore, up 16.4 per cent as against Rs 3,900.33 crore during the same period of previous financial year. The company EBITDA stood at Rs 374.6 crore.
According to a CNBC TV18 poll, Havells India was expected to report Q2 profit at Rs 328 crore and revenue for the quarter in review was estimated at Rs 4,332 crore.
Total Business: Rs 6,44,858 crore as on Sep 30th, 2024; up 7.07 per cent YoY
Total Deposits: Rs 3,91,914 crore; up 5.57 per cent YoY
Gross Advance: Rs 2,52,944 crore; up 9.48 per cent YoY
RAM (Retail, Agriculture & MSME) business grew by 19.95 per cent
Business per Employee: Rs 19.02 crore
Central Bank of India on Thursday reported its fiscal second quarter profit at Rs 923.83 crore, up 48.5 per cent in comparison to Rs 621.95 crore during the corresponding quarter of FY24. It posted total income during the quarter in review at Rs 9884.28 crore, up 17.1 per cent as against Rs 8438.51 crore during the same period of previous financial year.
On a standalone basis, Q2 profit was reported at Rs 912.84 crore, posting a growth of 50.8 per cent as against Rs 605.43 crore during the same period of FY24. The company recorded NII at Rs 3410 crore, up 13 per cent YoY.
In terms of asset quality, the Bank posted gross NPA at 4.59 per cent registering an improvement of 3 bps over 4.61 per cent YoY. Net NPA, meanwhile improved to 0.69 per cent, up 95 bps over 1.64 per cent on-year.
E-commerce ontinued accelerated growth by almost 38 per cent, primarily driven by Quick Commerce and fueled by brands such as Kitkat, Nescafé, Maggi And Milkmaid. Growth was supported by premiumisation, new user acquisition, festive participation and targeted digital communications, it said.
Organized Trade delivered growth spurred by noodles, beverages and overall premiumization.
Out of Home (OOH) showcased robust growth propelled by portfolio transformation, premiumization, new customer acquisition and driving reach beyond metros.
Export, meanwhile, continued to expand its footprint by introducing new SKUs across categories to Canada, Middle East, Maldives and Papua New Guinea.
Suresh Narayanan, Chairman and Managing Director of Nestlé India, said, “Despite a challenging external environment with muted consumer demand and high commodity prices especially for coffee and cocoa, we remained resilient in our pursuit to deliver growth. This quarter, 5 of our top 12 brands grew at double-digit. However, some key brands witnessed pressure due to softer consumer demand and we focus on them and have in place robust action plans. It is heartening to note that in the last 9 months, 65% of our top 12 brands including MAGGI noodles showed positive volume growth.”
Nestle India announced that the board of directors have approved the appointment of Manish Tiwary as Managing Director of Nestlé India Limited and he will succeed Suresh Narayanan, who will retire on 31st July 2025. The appointment will be effective from August 1, 2025, for a term of five consecutive years.
“To ensure a smooth transition due to Mr Suresh Narayanan’s retirement as Chairman and Managing Director of the Company on 31st July 2025, the Board of Directors has decided that Mr Manish Tiwary will commence his role at Nestlé India as Managing Director (Designate) starting 1st February 2025, taking on full responsibilities as Managing Director w.e.f. 1st August 2025,” the company said in a regulatory filing.