Q2 Results Live Updates: Infosys Lifts FY25 Forecast; Profit Rises 2%

• Net profit rose 18% to Rs 6,918 crore. (Bloomberg estimate: Rs 6,370 crore) (YoY).

• Gross NPA at 1.44% versus 1.54% (QoQ).

• NNPA at 0.34%.

• Revenue up 4.3% to Rs 40,986 crore versus Rs 39,315 crore.

• Net Profit up 2% to Rs 6,516 crore versus Rs 6,374 crore.

• Ebitda up 4% to Rs 8,649 crore versus Rs 8,288 crore.

• Margin at 21.2% versus 21.1%.

CC Revenue growth guidance has been revised to 3.75% to 4.5% for FY25. Earlier the guidance was at 3-4%.

Jindal Stainless Ltd. reported a 20% year-on-year fell in consolidated net profit for the second quarter of this financial year, missing analyst estimates.

The stainless-steel maker recorded a consolidated net profit of Rs 609.42 crore for the quarter ended September, compared to Rs 764.03 crore in the same quarter of the previous fiscal year, according to its stock exchange notification. This was above the Rs 729 crore estimate by analysts tracked by Bloomberg.

Revenue decreased by 0.2% year-on-year for the three months ended September, reaching Rs 9,776.83 crore. Analysts had projected revenue of Rs 9,367 crore.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 4% year-on-year to Rs 1,186.49 crore. The Ebitda margin contracted to 12.1% from 12.6% in the same period the previous year. Analyst estimates for Ebitda and Ebitda margin tracked by Bloomberg were Rs 1,242 crore and 13.30%, respectively.

Indian Overseas Bank Q2 Highlights (Standalone)

• NII up 8% at Rs 2,538 crore versus Rs 2,346 crore (YoY).

• Net profit up 24% at Rs 777 crore versus Rs 625 crore (YoY)

• Gross NPA at 2.72% versus 2.89% (QoQ).

• Net NPA at 0.47% versus 0.51% (QoQ).

Havells India Q2 Highlights (Consolidated, YoY)

• Revenue up 16.4% at Rs 4,539 crore versus Rs 3,900 crore.

• Net Profit up 7.5% at Rs 268 crore versus Rs 249 crore.

• Ebitda up 0.5% at Rs 375 crore versus Rs 373 crore.

• Margin at 8.3% versus 9.6%.

Tata Communications Q2 Highlights (Consolidated, QoQ)

• Revenue up 2% at Rs 5,767 crore versus Rs 5,633 crore

• Ebitda down 0.6% at Rs 1,116 crore versus Rs 1,123 crore

• Ebitda margin at 19.4% versus 19.9%

• Net profit down 32% at Rs 227 crore versus Rs 333 crore

Axis Bank is likely to clock a bottom line of Rs 6,381 crore and, according to Bloomberg estimates.

Jindal Stainless Ltd., a leading stainless steel manufacturer, is likely to report a net profit of Rs 729 crore and revenue of Rs 9,367.00 crore, according to Bloomberg estimates. It is likely to post an Ebitda of Rs 1,242 crore and an Ebitda margin of 13.30%.

Two companies from the Tata Group, Tata Chemicals Ltd. and Tata Communications Ltd., are set to announce their second-quarter earnings on Oct. 17.

Analyst estimates show that Tata Chemicals is likely to report a net profit of Rs 231 crore and revenue of Rs 3,994.0 crore, according to Bloomberg estimates. It is likely to post an Ebitda of Rs 647 crore and an EBIT margin of 16.20%.

Tata Communications is estimated to report a profit of Rs 271 crore and a revenue of Rs 5,777 crore. It is expected to post an Ebitda of Rs 1,158 crore and an Ebitda margin of 20%.

Karur Vysya Bank Q2 Highlights (Standalone)

• NII up 16% at Rs 1,060 crore versus Rs 915 crore (YoY).

• Net Profit up 25% at Rs 474 crore versus Rs 378 crore (YoY).

• Net NPA at 0.28% versus 0.38% (QoQ).

• Gross NPA at 1.10% versus 1.32% (QoQ).

Central Bank of India Q2 Highlights (Standalone)

• NII up 13% at Rs 3,411 crore versus Rs 3,023 crore (Y-o-Y).

• Net profit up 51% at Rs 913 crore versus Rs 605 crore (Y-o-Y).

• Gross NPA at 4.59% versus 4.54% (Q-o-Q).

• Net NPA at 0.69% versus 0.73% (Q-o-Q).

India's benchmark stock indices were trading lower through midday on Thursday, tracking a decline in HDFC Bank Ltd. and Bajaj Auto Ltd. share prices. As of 12:08 p.m., the Nifty 50 was trading 0.76% lower at 24,781.20 and the Sensex was trading 0.43% lower at 81,043.21. 

So far today, the Nifty 50 fell 0.81% to 24,769.95, and the Sensex declined 0.62% to 80,998.12.

Bajaj Auto Ltd. share price plunged 12.11% to Rs 10,210.00 apiece, the lowest level since Aug 23 after analysts flagged concern over its high valuation. The company has posted its highest-ever quarterly revenue. Bajaj Auto stock holds 1.03% weightage in the Nifty 50 index.

Broader markets underperformed benchmark indices, with the BSE Midcap and Smallcap falling 1.24% and 1.09%, respectively, through midday on Thursday.

On BSE, 18 sectors declined and two advanced. The BSE IT was the best-performing sector, and the BSE Auto declined the most.

Market breadth was skewed in favour of sellers. Around 2,482 stocks declined, 1,294 stocks advanced, and 137 stocks remained unchanged on BSE.

Morgan Stanley expects Infosys to lead revenue growth by reporting organic constant currency sequential revenue growth of 2.8%. Bank of America expects this kind of revenue growth, including inorganic growth.

Large deal ramp-up and hiring in the second quarter should be margin headwinds. However, subcontractor optimisation and the positive impact of value-based selling should be able to negate the headwinds, according to JM Financial.

Motilal Oswal sees the company's operating margin inch down 80 basis points due to reversal of one-offs, large deal investments and decline in utilisation.

In terms of guidance, BofA, Morgan Stanley and Motilal Oswal expect Infosys to upgrade its full-year guidance by 50 basis points, while Ambit Capital expects it to maintain it. 

On demand commentary amid a cautious environment, ICICI Securities underscores that cost efficiency focus and deal consolidation will continue. Traction in financial services is expected to continue from the first quarter; higher traction in hi-tech and recovery in communication is also expected, it adds.

Read more here.

Nestle SA cut its sales and profit guidance for the year as it struggles to rebuild market share after higher prices turned consumers off branded products.

The maker of Nescafe coffee and Purina pet food now expects organic sales to rise around 2% in 2024, below the previous forecast of at least 3%, the company said in a statement Thursday. Sales climbed 2% in the first nine months of the year.

“Consumer demand has weakened in recent months, and we expect the demand environment to remain soft,” new Chief Executive Officer Laurent Freixe said. Organic growth in North America was the weakest, with sales contracting 0.3%. 

Nestle abruptly replaced CEO Mark Schneider with Freixe in September, shifting from an outsider who previously ran a health-care company to an insider who climbed the Swiss company’s executive ranks focusing on functions like marketing and selling. 

Read more here.

Shares of Nestle India extended its fall after it reported a net profit of Rs 899 crore in September quarter, down 0.9% from a year ago period. The margin for the period came in at 22.9% against 24.3% in the year-ago period. Revenue grew slightly by 1.5% to Rs 5,104 crore.

Nestle stock fell as much as 3,2% during the day to Rs 2,381 apiece on the NSE. It was trading 2.8% higher at Rs 2,393 apiece, compared to a 0.76% advance in the benchmark Nifty 50 as of 10:24 p.m.

It has risen 2.6% during the last 12 months and has declined by 9.8% on a year-to-date basis. The relative strength index was at 26.

Sixteen out of the 38 analysts tracking the company have a 'buy' rating on the stock, 17 suggest a 'hold' and five have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 9%.

Nestle India Ltd.'s net profit fell marginally in the second quarter of financial year 2025, meeting analysts' estimates, showed the company's quarterly earnings announced on Thursday.

Net profit of the maker of Maggi instant noodles and KitKat chocolates decreased 0.9% year-on-year to Rs 899.49 crore in the three months ended September, according to an exchange filing on Thursday. That compares with the Rs 882-crore consensus estimate of analysts tracked by Bloomberg.

Nestle India Q2 Highlights (Consolidated, YoY)

• Revenue up 1.3% at Rs 5,104 croire versus Rs 5,037 crore.

• Ebitda down 4.7% at Rs 1,168 crore versus Rs 1,226 crore

• Margin at 22.9% versus 24.3%.

• Net profit down 0.9% at Rs 899 crore versus Rs 908 crore.

Infosys Ltd., which is set to announce its earnings for the second quarter of the current financial year on Thursday, is expected to see a growth in revenue, profits and margin. 

The IT services major's consolidated net profit may rise 7% sequentially to Rs 6,815 crore in the quarter ended September, according to a consensus of analysts' estimates tracked by Bloomberg.

Infosys Q2 FY25 Earnings Estimates (Consolidated, QoQ)

• Revenue may rise 3.5% to Rs 40,707 crore.

• Profit may rise 7% to Rs 6,815 crore.

• EBIT margin may expand 30 basis points to 21.4%.

• EBIT may rise 5.2% to Rs 8,726 crore.

Infosys has guided for revenue growth of 3–4% for the fiscal. The company raised its revenue forecast, citing significant large deals during the April–June period.

Read more here.

BofA and Morgan Stanley expect Wipro to guide for constant currency revenue growth of −0.5% to 1.5% for the third quarter, on the back of healthy deal wins. 

Brokerages note that the second quarter margins will be impacted due to the wage hike. Operational efficiencies and favourable foreign exchange will likely aid 35 basis points sequential expansion in EBIT margin to 16.8%, according to JM Financial. 

On demand, ICICI Securities notes that demand commentary has not improved with continued pressure on discretionary spends. However, some green shoots in consulting, in line with superior Capco performance in Q4FY24 and Q1FY25, are expected. Q2 is estimated to fare better than Q1. Energy and utility verticals are estimated to be soft, with large deals coming to an end, the brokerage added. 

In Q1, large deal bookings stood at $1,154 million, and total bookings were at $3.28 billion. Ahead of Q2 results, ICICI Securities notes that there is some decline in large deal announcements QoQ in Q2, with some deals from hi-tech and ER&D.

IT bellwether Wipro is expected to see improvement in revenue, while profits might dip marginally. 

The IT services firm's net profit may fall 0.2% sequentially to Rs 2,996 crore in the quarter ended September, according to a consensus of analysts' estimates tracked by Bloomberg.

Wipro Q2 FY25 Earnings Estimates (Consolidated, QoQ)

• Revenue may rise 1.4% to Rs 22,271 crore.

• Ebit may come in flat at Rs. 3,625 crore.

• Margin expected to be flat at 16.3% 

• Net profit may fall by 0.2% to Rs. 2,996 crore.

Management commentary on steps towards the long-term plan under the new management, demand trajectory in the consulting business Capco, trajectory in the BFSI space, and update on healthcare, retail, and energy and utilities verticals is to be watched out for. 

Read more here.

Two companies from the Tata Group, Tata Chemicals Ltd. and Tata Communications Ltd., are set to announce their second-quarter earnings on Thursday.

Analyst estimates show that Tata Chemicals is likely to report a net profit of Rs 231 crore and revenue of Rs 3,994.0 crore, according to Bloomberg estimates. It is likely to post an Ebitda of Rs 647 crore and an EBIT margin of 16.20%.

Tata Communications is estimated to report a profit of Rs 271 crore and a revenue of Rs 5,777 crore. It is expected to post an Ebitda of Rs 1,158 crore and an Ebitda margin of 20%.

Infosys Ltd., Axis Bank, Wipro Ltd. and LTIMindtree Ltd. are among the top names that will announce their results on Thursday for the second quarter of the current financial year.

Analyst estimates show that Infosys is likely to report a net profit of Rs 6,831 crore and revenue of Rs 40,820 crore, according to Bloomberg estimates. It is likely to post an EBIT of Rs 8699 crore and an EBIT margin of 18.30%.

Axis Bank is likely to clock a bottom line of Rs 6,381 crore and, according to Bloomberg estimates.

Wipro is estimated to report a profit of Rs 3,009.0 crore and a revenue of Rs 22,235 crore. The company is likely to report EBIT at Rs 3629 crore and EBIT margin at 16.30%.

Infosys Ltd.'s share price rose 2% in early trade on Thursday, ahead of the release of its July-September quarter results. The IT services major's consolidated net profit may rise 7% sequentially to Rs 6,815 crore in the second quarter, according to a consensus of analysts' estimates tracked by Bloomberg.

Infosys' revenue is projected to increase by 3.5% to Rs 40,707 crore. Additionally, EBIT is expected to grow by 5.2% to Rs 8,726 crore, with the EBIT margin anticipated to expand by 30 basis points, reaching 21.4%.

In terms of guidance, BofA, Morgan Stanley, and Motilal Oswal expect Infosys to upgrade its full-year guidance by 50 basis points, while Ambit Capital expects it to maintain it. 

The Bengaluru-based IT behemoth has guided revenue growth of 3–4% for the fiscal. The company has increased its revenue forecast, citing significant deals during the April-June period.

The company secured 34 large deals in the first quarter, its highest ever, with a total contract value of $4.1 billion, 57.6% of which were net new. Ahead of Q2 results, ICICI Securities notes that deal wins have been flat QoQ, slightly on the lower side. 

The Infosys results will follow that of larger rival Tata Consultancy Services Ltd., whose second-quarter earnings missed profit and margin estimates as the IT giant grappled with weak demand and high pass-through costs.

Infosys share price advanced 2% intraday to Rs 1,958.35 apiece. The scrip was trading 1.74% higher at Rs 1,953.5 by 9:45 a.m. The benchmark NSE Nifty 50 was down 0.56%, while the Nifty IT index surged 0.74% with most constituents in the green.

The stock has risen 35% in the last 12 months and 26% on a year-to-date basis. The relative strength index was at 32.

Thirty out of the 45 analysts tracking the stock have a 'buy' rating on the stock, 10 recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The average 12-month analyst price target of Rs 1,981.8 implies a potential upside of 2.2%.

Information technology majors Infosys Ltd. and Wipro Ltd. will be among the top names to watch out for as they will report their second-quarter earnings on Thursday.

Axis Bank Ltd., Nestle India Ltd., Tata Communications Ltd. and LTIMindtree Ltd. are among the other big names that will announce their results for the second quarter of the current financial year.

Central Bank Of India, Havells India Ltd., Indian Overseas Bank, Jindal Stainless Ltd., Polycab India Ltd., and Tata Chemicals Ltd. will be the other companies to report their earnings during the session.