Q1 Results: Adani Energy Revenue Up 47%; United Breweries Net Profit Rises 27.5%

Tech Mahindra Ltd., Ashok Leyland Ltd. and Nestle India Ltd. will be among the major firms to report their first-quarter earnings on Thursday.

Tech Mahindra is expected to post a bottom-line print of Rs 874 crore and a top-line of Rs 12,967 crore for the three months ended June, according to analysts' estimates compiled by Bloomberg.

Ashok Leyland is expected to post a profit of Rs 547 crore, while Nestle India is expected to post a bottom line of Rs 833 crore.

Mphasis Ltd., United Breweries Ltd., DLF Ltd., Laurus Labs Ltd., Canara Bank, Aavas Financiers Ltd., AU Small Finance Ltd., Chalet Hotels Ltd., Cyient Ltd., Home First Finance Ltd., Jupiter Wagons Ltd., Jyothy Labs Ltd., Motilal Oswal Ltd. will be the other companies to report their earnings on Thursday.

Here are the earnings estimates of major companies that are scheduled to announce their results on Thursday.

• Revenue up 8% at Rs 742 crore versus Rs 687 crore.

• Ebitda up 16.2% at Rs 194 crore versus Rs 167 crore.

• Margin at 26.1% vs 24.3%.

• Net profit up 6.3% at Rs 102 crore versus Rs 96 crore.

• Revenue up 3.3% at Rs 4,814 crore versus Rs 4,659 crore.

• Ebitda up 5.6% at Rs 1,115 crore versus Rs 1,056 crore.

• Margin at 23.2% vs 22.7%.

• Net profit up 7% at Rs 747 crore versus Rs 698 crore.

Despite external challenges such as lower consumption growth, concerns on continued food inflation and volatile commodity prices, Nestle delivered growth across product groups, according to Chairman and Managing Director, Suresh Narayanan.

"Almost a fourth of our growth has been mix and volume led, and we hope to strengthen this trend in the coming months."

• Commodity prices seeing unprecedented headwinds in coffee and cocoa.

• Added over 800 new distribution touchpoints.

• E-commerce contributed to 7.5% of domestic sales.

• Nescafe roastery strengthened premium coffee portfolio.

• Consumer-led activation on ‘cold opportunity’ led to double-digit growth in nescafe classic.

Nestle India, the maker of Maggi instant noodles and KitKat chocolates announced a dividend of Rs 2.75 per share.

The company's board declared an interim dividend for the current financial year 2024-25 of Rs 2.75 per equity share amounting to Rs 2,651.4 million. This will be paid on and from Aug. 6, 2024, along with the final dividend for financial year ended 31st March 2024 of Rs 8.50 per equity share.

• E-commerce: The segment continued to accelerate, with strong growth in quick commerce, driven by brands such as KITKAT, NESCAFÉ, MAGGI Masala-ae-Magic, MILKMAID and RTD.

• Organized Trade: Retail grew in double-digit, led by value added noodles, beverages and overall premiumization.

• Out of Home (OOH): Teh business showed strong growth momentum fuelled by portfolio transformation, innovations, penetration and premiumization.

• Export: The company expanded its footprint by introducing new SKUs to markets in USA, Canada, Middle East and North Africa.

• Prepared Dishes and Cooking Aids: The segment maintained its momentum aided by strong consumer engagements, media campaigns, innovations and enhanced RURBAN penetration.

• Milk Products and Nutrition: Growth was driven by MILKMAID and toddler range of products.

• Confectionery: Category-first initiatives were initiated on OTT platforms for KITKAT, while MUNCH entered a movie partnership. MUNCH continued to make regional inroads.

• Beverages: The segment witnessed robust performance across all products. With a strong performance, NESCAFÉ solidified its leadership position in the market, Nestle said.

• Petcare Business: Felix wet cat food continued to receive positive feedback from trade and cat parents. E-commerce and quick commerce was instrumental in reaching out to more pet families, the company said.

Nestle Ltd. stock fell as much as 2.94% during the day to Rs 2466.80 apiece on the NSE, its lowest since June 7. It was trading 2.8% lower at Rs 2470.40 apiece, compared to a 0.17% decline in the benchmark NSE Nifty 50 as of 12:33 p.m.

It has risen 9.18% in the last 12 months and fallen 6.66% on a year-to-date basis. The total traded volume so far in the day stood at 5.1 times its 30-day average. The relative strength index was at 36.70.

Nineteen out of the 38 analysts tracking Nestle Ltd. have a 'buy' rating on the stock, 15 recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside

Nestle India Ltd.'s net profit rose in the first quarter of financial year 2025 but missed analysts' estimates.

Net profit of the maker of Maggi instant noodles and KitKat chocolates rose 7% year-on-year to Rs 747 crore in the three months ended June, according to an exchange filing on Thursday. That compares with the Rs 833-crore consensus estimate of analysts tracked by Bloomberg.

Managing Director Suresh Narayanan emphasised the strong role of mix and volume, which accounted for one-fourth of Nestle's growth. He said five of the company's top 12 brands experienced double-digit growth, showcasing the strength of the portfolio.

E-commerce has become a significant channel, contributing 7.5% to the domestic sales and growing at double digits. To bolster the distribution network, Nestle added over 800 new touchpoints, enhancing the market reach, according to the chairperson.

• Revenue up 27% at Rs 1,222 core versus Rs 960 crore.

• Ebitda down 0.8% at Rs 91.6 crore versus Rs 92.3 crore.

• Ebitda margin at 7.5% vs 9.6%.

• Net profit down 2.5% at Rs 77 crore versus Rs 79 crore.

Thangamayil Jewellery Ltd. stock fell as much as 8.63% during the day to Rs 1775 apiece on the NSE. It was trading xxx% higher/lower at Rs xxx apiece, compared to a xx% advance/decline in the benchmark NSE Nifty 50 as of xxx a.m. 

It has risen 72.68% in the last 12 months and 20.7% on a year-to-date basis. The total traded volume so far in the day stood at 2.7 times its 30-day average. The relative strength index was at 58.15.

Two analysts tracking Thangamayil Jewellery have a 'buy' rating on the stock according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 8.4%.

The company also announced a joint venture with Dr Reddy's Laboratories, which will be called Dr. Reddy’s and Nestlé Health Science Ltd.

Nestle will hold 49% equity in Dr. Reddy’s Nutraceuticals Ltd., an erstwhile subsidiary of Dr. Reddy's Laboratories, with the rest owned by the latter, it said in an exchange filing.

The newly formed company will comprise 1,00,000 shares with a face value of Rs 10. The company was incorporated on March 13 with a paid-up share capital of Rs 10,00,000.

The partnership was reportedly made to combine the established reputed range of nutritional products (including vitamins, minerals and health supplements) of Nestlé Health Science with the nutraceuticals portfolios and established market share of Dr. Reddy’s Laboratories in India.

Nestle is leading the losses in the Fast Moving Consumer Goods sector in the Nifty with a decline of 2.6%. It is followed by Hindustan Unilever Ltd., Dabur India Ltd., Tata Consumer Products Ltd. and ITC Ltd.

Varun Beverages Ltd., Marico Ltd., Procter & Gamble Ltd., Radico Khaitan Ltd. and Godrej Consumer Products are the top movers in the sector.

Nifty FMCG declined by 0.72% against a 0.17% decline in the benchmark Nifty 50 as of 12:24 p.m. 

• Net Interest Income up 19% at Rs 942 crore versus Rs 793 crore (YoY).

• Gross NPA 2.52% versus 2.23% (QoQ).

• Net NPA 0.41% versus 0.28% (QoQ)

• Net profit down 7% at Rs 301 crore versus Rs 324 crore (YoY).

Ujjivan SFB Ltd. stock fell as much as 1.66% during the day to Rs 43.75 apiece on the NSE. It was trading 1.35% lower at Rs 43.89 apiece, compared to a 0.10% decline in the benchmark NSE Nifty 50 as of 12:58 p.m. 

It has fallen 0.23% in the last 12 months and fallen 22.64% on a year-to-date basis. The relative strength index was at 39.57.

Fifteen out of the 16 analysts tracking Ujjivan SFB Ltd. have a 'buy' rating on the stock and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 42.3%.

• Revenue up 5% at Rs 8,599 crore versus Rs 8,189 crore.

• Ebitda up 11.2% at Rs 912 crore versus Rs 820 crore.

• Margin at 10.6% versus 10%.

• Net profit down 8.7% at Rs 526 crore versus Rs 576 crore.

Ashok Leyland Ltd. stock fell as much as 3.29% during the day to Rs 224.85 apiece on the NSE. It was trading 1.46% lower at Rs 229.26 apiece, compared to a 0.10% decline in the benchmark NSE Nifty 50 as of 1:11 p.m. 

It has risen 25.55% in the last 12 months and 26.43% on a year-to-date basis. The relative strength index was at 51.32.

Twenty nine out of the 43 analysts tracking Ashok Leyland Ltd. have a 'buy' rating on the stock, six recommend a 'hold' and eight suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 2%.a

Through their Electric Vehicle subsidiary, Switch Mobility, the company is geared up to participate in the growing EV market said Dheeraj Hinduja, Chairman. "The launch of IeV3 this month, second e-LCV launch by Switch, will further strengthen our position in this market.

"First quarter industry volumes were at comparable levels of the previous peak of Q1 FY19. Ashok Leyland’s Q1 performance has beaten all expectations, we have been able to post excellent results with focused market performance while reining in costs," he added.

Shenu Agarwal, Managing Director & CEO, Ashok Leyland noted that the company's non-commercial vehicles businesses has grown substantially.

"While we continue to expand our market penetration on the back of efficient products and network expansion, we shall remain acutely focused on achieving mid- teen EBITDA in the medium term. This is important for us as we continue to focus on investing in technologies of the future,” he added.

• Net profit up 10.5% at Rs 3,905 crore versus Rs 3,535 crore (YoY).

• Gross NPA 4.14% versus 4.23% (QoQ).

• Net NPA 1.24% versus 1.27% (QoQ).

• Net Interest Income up 6% at Rs 9,166 crore versus Rs 8,666 crore (YoY).

Canara Bank stock fell as much as 2.85% during the day to Rs 109.25 apiece on the NSE. It was trading 0.27% higher at Rs 112.74 apiece, compared to a 0.20% decline in the benchmark NSE Nifty 50 as of 1:39 p.m. 

It has risen 67.33% in the last 12 months and 27.83% on a year-to-date basis. The total traded volume so far in the day stood at 2.0 times its 30-day average. The relative strength index was at 40.24.

Twelve out of the 18 analysts tracking Canara Bank have a 'buy' rating on the stock, one recommends a 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 0.4%.

• Revenue up 33.7% at Rs 240 crore versus Rs 180 crore (YoY).

• Ebitda up 73.7% at Rs 48 crore versus Rs 28 crore (YoY).

• Margin at 20% versus 15.4% (YoY).

• Net profit up 58.3% at Rs 28 crore Rs 17 crore (YoY).

• Global business increased by 11.07% to Rs 23.1 lakh crore.

• Domestic Deposit rose 11.47% to Rs 12.31 lakh crore as of June 2024.

• Domestic Advances (gross) stood at Rs 9.20 lakh crore as at June 2024.

• Risk Assessment Model credit rose by 12.26% to Rs 551750 crore.

• Retail lending Portfolio increased by 23.54% to Rs 1.75 lakh crore

• Housing Loan Portfolio rose by 11.90% to Rs 96,108 crore.

• Revenue up 6.35% at Rs 653 crore versus Rs 614 crore.

• Ebitda up 26.15% at Rs 105.49 crore versus Rs 83.62 crore.

• Margin up 253 bps at 16.15% versus 13.61%.

• Net profit up 510% at Rs 6.1 crore versus Rs 1 crore.

Canara Bank withdrew Rs 22,500 crore from low-yielding advances in the first quarter, said K. Satyanarayana Raju, MD and CEO of Canara Bank.

Almost completed exercise of low-cost, low-yielding advances with better ones, he further said.

Canara Bank wants to complete 90% provisioning coverage ratio by end of this fiscal.

"Have taken a business call that Retail Agriculture and MSME sector growth would outpace corporate sector" said the CEO Raju as there are more returns and less risk in the segment.

Earlier penal interest was calculated in interest come, but as per revised RBI guidelines, it is being accounted under other charges. This had an impact on net interest income, said K. Satyanarayana Raju, MD & CEO, Canara Bank

Source: Q1FY25 media call

• Total income up 7% at Rs 1,822 crore versus Rs 1,699 crore.

• Net profit up 24% at Rs 439 crore vs Rs 353 crore (Bloomberg Estimate: Rs 427 crore).

• Total income up 14% at Rs 534 crore versus Rs 469 crore.

• Net profit up 17% at Rs 274 crore versus Rs 234 crore (Bloomberg Estimate: Rs 182 crore).

• Revenue up 31% at Rs 2,834 crore versus Rs 2,162 crore.

• Ebitda up 26% at Rs 2,420 crore versus Rs 1,921 crore.

• Margin up at 85.4% versus 88.9%.

• Net profit up 95% at Rs 629 crore versus Rs 323 crore.

• Revenue up 1% at Rs 1,195 crore versus Rs 1,182 crore (Bloomberg Estimate: Rs 1,365 crore).

• Ebitda up 2.6% at Rs 171 crore versus Rs 167 crore (Bloomberg Estimate: Rs 229 crore).

• Margin at 14.3% versus 14.1% (Bloomberg Estimate: 16.80%).

• Net profit down 52% at Rs 13 crore versus Rs 27 crore (Bloomberg Estimate: Rs 60 crore).

• Revenue flat at Rs 616 crore versus Rs 615 crore.

• Net profit down 89% at Rs 3.25 crore versus Rs 29 crore.

• Ebitda margin at 12.8% versus 17%.

• Ebitda down 25% at Rs 79 crore versus Rs 104 crore.

• Revenue down 2% at Rs 17,095 crore versus Rs 17,720 crore (QoQ).

• Ebitda down 36% at Rs 663 crore versus Rs 1,042 crore (QoQ).

• Ebitda margin at 3.9% versus 5.9% (QoQ).

• Net profit down 43% at Rs 357 crore versus Rs 628 crore (QoQ).

• Total Income up 16.2% at Rs 543 crore versus Rs 467 crore.

• Net profit up 14.9% at Rs 126 crore versus Rs 110 crore (Bloomberg Estimate: Rs 136 crore).

• Solar portfolio CUF at 36.2% backed by 96.8% plant availability.

• Wind portfolio CUF at 36.2% backed by 96.8% plant availability.

• Consistent high hybrid portfolio CUF at 46% backed by 99.7% plant availability.

• Operational Capacity of Adani Green Energy up 31% to 10,934 MW with Greenfield Addition of 2,618 MW.

• Massive Greenfield RE Capacity addition of 2.6 GW Demonstrates unprecedented scale of execution.

• Revenue up 16.8% at Rs 880 crore versus Rs 753 crore (Bloomberg Estimate: Rs 705 crore).

• Ebitda up 41.2% at Rs 137 crore versus Rs 97 crore.

• Ebitda margin at 15.53% versus 12.85%.

• Net profit up 46.2% at Rs 92 crore versus Rs 63 crore (Bloomberg Estimate: Rs 43 crore).

• Revenue up 47% at Rs 5,379 crore versus Rs 561 crore.

• Ebitda up 43% at Rs 2,244 crore versus Rs 1,574 crore.

• Ebitda margin at 41.7% versus 42.9%.

• Net loss at Rs 1,190 crore versus Rs 1,574 crore.

• Net loss led by exceptional item of Rs 1,506 crore in current quarter.

• Revenue up 1.04% at Rs 13,005.5 crore versus Rs 12,871.3 crore (Bloomberg Estimate: Rs 12,967 crore).

• Ebit up 16.47% at Rs 1,102.3 crore versus Rs 946.39 crore (Bloomberg Estimate: Rs 1,515 crore).

• Ebit margin at 8.47% versus 7.35% (Bloomberg Estimate: 11.70%).

• Net profit up 30.23% at Rs 865 crore versus Rs 664.2 crore (Bloomberg Estimate: Rs 874 crore).

• Net profit up 30% at Rs 502.57 crore versus Rs 386.8 crore (YoY).(Bloomberg Estimate: Rs 484 crore).

• NII up 54% at Rs 1921 crore versus Rs 1,246 (YoY).

• GNPA at 1.78% vs 1.67% (QoQ).

• NNPA 0.63% vs 0.55% (QoQ).

• Revenue down 5.1% at Rs 699 crore versus Rs 737 crore (Bloomberg Estimate: Rs 799 crore).

• Ebitda down 21.8% at Rs 92 crore versus Rs 75 crore (Bloomberg Estimate: Rs 91 crore).

• Margin at 13.2% versus 10.2% (Bloomberg Estimate: 11.40%).

• Net profit up 43.5% at Rs 84 crore versus Rs 59 crore (Bloomberg Estimate: Rs 65 crore).

• Total headcount addition at 2,165 (QoQ)

• IT services last 12 months attrition at 10%, flat (QoQ)

• Net new deal wins (TCV) at $534 Million

The bank's board on Thursday gave its nod for filing application for transition to a Universal Bank. The board has also appointed Committee of Directors under H. R. Khan, to vet the application for Universal Banking license.

Source: Q1FY25 press release

• Over 25,000 of associates are enabled with AI led programming skills.

• We offer more than 100 AI based solutions across AI ops, computer vision and more.

• May have a gradual improvement in trajectory in the US.

• Improvement seen in spending across asset and wealth management, cards and payments, risk and compliance and insurance.

• Investment banking and lending businesses are experiencing some softness.

• We are more confident that this will be a better year compared to the previous one.

Source: Tech Mahindra CEO Mohit Joshi

• Deals win were broadbased in prioritized market like USA, selected pockets of APJ and high margin service line.

• Completed full integration of two portfolio companies and their core systems.

• The service line reporting now flows into the CEO organization.

Source: Tech Mahindra CFO Rohit Anand

• Margins will keep firming from here onwards.

• Margin trajectory will be upwards.

Source: Tech Mahindra CEO Mohit Joshi

• Revenue down 9.9% at Rs 1,676 crore versus Rs 1,861 crore (Bloomberg Estimate: Rs 384 crore).

• Ebit down 25.7% at Rs 199 crore versus Rs 268 crore (Bloomberg Estimate: Rs 36 crore).

• Margin at 11.9% versus 14.4% (Bloomberg Estimate: 9.40%).

• Net profit down 25.7% at Rs 199 crore versus Rs 268 crore (Bloomberg Estimate: Rs 22 crore).

• Net profit up 27% at Rs 88 crore versus Rs 69 crore (Bloomberg Estimate: Rs 84 crore)

• Total income up 31.4% at Rs 341 crore versus Rs 260 crore.

• Revenue down 6.8% at Rs 2,094 crore versus Rs 2,247 crore.

• Ebitda down 6.8% at Rs 320 crore versus Rs 343 crore.

• Margin at 15.29% versus 15.28%.

• Net profit down 50.8 at Rs 37 crore versus Rs 74 crore.

• Revenue up 1.5% at Rs 1,590 crore versus Rs 1,567 crore.

• Ebitda up 6.3% at Rs 418 crore versus Rs 394 crore.

• Ebitda margin at 26.3% versus 25.1%.

• Net profit up 7.4% at Rs 285 crore versus Rs 265 crore.

• Net profit up 80.7% at Rs 519 crore versus Rs 287 crore (Bloomberg Estimate: Rs 2,405 crore).

• Total income up 66.7% at Rs 1,531 crore versus Rs 918 crore.

• Focus would be more around branch banking for deposits.

• Credit card business has more challenges but we are focussed on it.

• Our portfolio of MFI is only about 10%.

Note: AU Small Finance Bank is in the midst of merging Fincare SFB with itself. Fincare SFB is predominantly a microfinance lender.

Source: Sanjay Agarwal, MD & CEO, AU Small Finance Bank during Q1FY25 analyst call

• Revenue down 4% at Rs 1,362 crore versus Rs 1,423 crore (Bloomberg Estimate: Rs 1,474 crore).

• Ebitda down 42.3% at Rs 229 crore versus Rs 396 crore (Bloomberg Estimate: Rs 501 crore).

• Ebitda margin at 16.8% versus 27.8% (Bloomberg Estimate: 34%).

• Net profit up 22.5% at Rs 645 crore versus Rs 526 crore (Bloomberg Estimate: Rs 682 crore).

• Revenue up 10.8% at Rs 2,475 crore versus Rs 2,275 crore (Bloomberg Estimate: Rs 2,631 crore).

• Ebitda up 27.9% at Rs 285 crore versus Rs 223 crore (Bloomberg Estimate: Rs 285 crore).

• Ebitda margin at 11.5% versus 9.8% (Bloomberg Estimate: 10.80%).

• Net profit up 27.5% at Rs 173 crore versus Rs 136 crore (Bloomberg Estimate: Rs 179 crore).

• Revenue up 1.8% at Rs 589 crore versus Rs 578 crore.

• Ebitda down 17.4% at Rs 159 crore versus Rs 193 crore.

• Ebitda margin at 27.1% versus 33.4%.

• Net profit down 17.7% at Rs 111 crore versus Rs 135 crore.

• Revenue up 16.2% at Rs 361 crore versus Rs 311 crore (Bloomberg Estimate: Rs 363 crore).

• Ebit up 27.8% at Rs 140 crore versus Rs 110 crore (Bloomberg Estimate: Rs 142 crore).

• Ebit Margin at 38.8% versus 35.3% (Bloomberg Estimate: 39,20%).

• Net profit down 31.6% at Rs 61 crore versus Rs 89 crore (Bloomberg Estimate: Rs 49 crore).

• Net profit up 73.3% at Rs 2,077 crore versus Rs 1,667 crore.

• Total income up 24.6% at Rs 2,077 crore versus Rs 1,667 crore.

• Revenue up 14.2% at Rs 462 crore versus Rs 405 crore.

• Ebitda up 31.4%% at Rs 92 crore versus Rs 70 crore.

• Ebitda margin at 19.8% versus 17.2%.

• Net profit up 28.9% at Rs 67 crore versus Rs 52 crore.