Q2 Results Live Updates: UltraTech Cement Net Profit Falls 35.5%, CG Power Declines 9%

CG Power Q2 Highlights (Consolidated, YoY)

• Revenue up 21% at Rs 2,413 crore versus Rs 2,001 crore

• Ebitda down 4% at Rs 295 crore versus Rs 308 crore

• Ebitda margin at 12.2% versus 15.4%.

• Net profit down 9% at Rs 220 crore versus Rs 242 crore.

The assets under management of Bajaj Housing Finance Ltd. jumped 26% year-on-year to cross the Rs 1-lakh-crore mark in the quarter ended September 2024, as per the provisional data shared by the company on Thursday.

The AUM at the end of the second quarter of this fiscal stood at Rs 1.02 lakh crore, as compared to Rs 81,215 crore as of Sept. 30, 2023.

In the June-September period of this year, the AUM grew by approximately Rs 5,480 crore, Bajaj Housing Finance said in an exchange filing. This is in line with the previous two quarters' growth, it added.

The company's loan assets stood at around Rs 89,860 crore at the end of the September quarter, marking a jump of 26.6% from Rs 70,954 crore in the year-ago period.

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• Net profit at Rs 8 crore versus loss of Rs 17 crore. 

• Revenue down 18% at Rs 347 crore versus Rs 425 crore.

• Ebitda up 64% at Rs 62 crore versus Rs 38 crore. 

• Ebitda margin at 17.7% versus 8.8%.

UltraTech Cement Ltd.'s consolidated net profit fell in the second quarter of the current financial year, missing analysts' estimates as the company was impacted by weak cement pricing and subdued demand in the monsoon season.

The cement manufacturer's bottom-line stood at Rs 825 crore in the quarter ended Sept. 30, 2024, compared to Rs 1,280 crore clocked in the year-ago period, according to an exchange filing on Monday. Analysts tracked by Bloomberg had a consensus estimate of Rs 1,039.24 crore.

UltraTech Q2 FY25 Earnings Highlights (Consolidated, YoY)

• Net profit down 35.5% at Rs 825 crore versus Rs 1,280 crore.

• Revenue down 2.4% at Rs 15,635 crore versus Rs 16,012 crore.

• Ebitda down 20.8% at Rs 2019 crore versus Rs 2551 crore.

• Ebitda margin down at 12.91% versus 15.93%.

Bajaj Housing Finance Ltd., India’s most valuable mortgage lender following its blockbuster trading debut Monday, sees competition in the housing market easing as larger banks retreat from retail segments and switch focus to corporate credit, where demand is picking up.

Sanjiv Bajaj, chairman of the home-loan unit of India’s largest shadow lender and part of one of the country’s oldest conglomerates, said banks have focused on retail business in recent years, given softer demand from corporate borrowers and this has made housing finance “a very competitive market at this point of time”.

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For Bajaj Housing Finance, it will be the first time that the company will be declaring its quarterly results after listing on the bourses on September 16.

In its provisional data filed with the stock exchanges on October 3, Bajaj Housing Finance stated that its assets under management have jumped 26% year-on-year to Rs 1.02 lakh crore in the quarter ended September 2024.

The AUM grew by approximately Rs 5,480 crore during this period, Bajaj Housing Finance had said in an exchange filing.

UltraTech Cement's consolidated net profit remained little changed in the first quarter of the current financial year, missing analysts' estimates.

The cement manufacturer's bottom line stood at Rs 1,695.22 crore in the quarter ended June, compared to Rs 1,690.22 crore clocked in the year-ago period, according to an exchange filing on Friday. Analysts tracked by Bloomberg had a consensus estimate of Rs 1,820.2 crore.

UltraTech Cement's consolidated sales volumes were 7% higher on a year-on-year basis at 31.95 million tonnes.

Majority of the growth was from cement exports that grew 69%, while grey cement domestic sales saw a 6% uptick.

The company's sales realisation declined by 5.7% and 2.4% on an annual and sequential basis, respectively. Operating Ebitda per million tonne stood Rs 69 lower at Rs 965.

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Indian cement prices fell for nine consecutive months from November 2023 to July 2024, prompting the industry to raise prices by Rs 10 to 20 per bag between August and September 2024, as per Motilal Oswal.

However, the industry only maintained a partial increase of Rs 5 to 6 per bag across all regions. As a result, all-India average cement prices declined by 7% annually and 1% sequentially in the quarter ended September 2024.

This weak pricing environment could harm UltraTech's gray realizations sequentially by 2.4%, according to Nuvama. Lower sales realisations could lead to the company's Ebitda per tonne falling to Rs 876 compared to Rs 956 a year ago, stated the brokerage.

Citi expects an even greater drop in Ebitda per tonne to Rs 764, marking an 18% year-on-year fall. Motilal Oswal expects the company's Ebitda to decline 15% year-on-year.

Cement manufacturers are predicted to have had a seasonally weak quarter. In the case of UltraTech Cement, the decrease in revenues and net profits is mostly attributable to a difficult pricing environment and dampened demand caused by the monsoon season.

The Aditya Birla Group's cement manufacturer is expected to post a decline in net revenue by 1.88% to Rs 15,711.18 crore and an operating profit decline of 9.3% to Rs 2,314.2 crore YoY. Margins may expand 670 basis points to 14.7% versus 8% and the net profit may fall 18.9% to Rs 1,039.24 crore.

JPMorgan initiated coverage on the cement sector on Monday and UltraTech Cement received an 'overweight' rating and a target price of Rs 13,750, implying an upside of 24%. The brokerage prefers UltraTech Cement as it delivers better Ebitda per tonne.

Newly listed Bajaj Housing Finance will be announcing its earnings for the first time post listing. And asset and wealth management company, 360 One Wam, will also be posting its earnings. Analysts estimate the company to post a revenue of Rs 602.8 crore and an operating profit of Rs 359.2 crore.

Motor and generator manufacturing company, CG Power and Industrial Solutions, is estimated to have made Rs 2,329.5 crore in revenue and operating profit of Rs 342.2 crore. Margins are expected to be up 14.70% at Rs 258.5 crore.

Mahindra Logistics is estimated to post a 5% uptick in margins for the second quarter of the fiscal, according to Bloomberg analysts.

UltraTech Cement Ltd. is expected to post weak second-quarter results. The weak pricing environment and muted demand due to the monsoon season are the key drivers for the expected downtick in revenues and net profits.

Net profit of the Aditya Birla Group's cement manufacturer may fall over 18% year-on-year to Rs 1,039.24 crore in the July–September quarter, according to consensus estimates of analysts tracked by Bloomberg.

UltraTech Q2 Results: Bloomberg Estimates (Consolidated, YoY)

• Revenues may fall 1.88% to Rs 15,711.18 crore.

• Ebitda may fall 9.3% to Rs 2,314.22 crore.

• Margins may expand 670 basis points to 14.7% versus 8%.

• Net profit may fall 18.9% to Rs 1,039.24 crore.

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• Net Profit down 23.7% at Rs 151 crore versus Rs 198 crore

• Revenue down 20.9% at Rs 163 crore versus Rs 206 crore.

• Ebitda down 19.8% At Rs 161 crore versus Rs 200 crore.

• Margin at 98.6% versus 97.3%.

UltraTech Cement Ltd., Bajaj Housing Finance Ltd., 360 One Wam Ltd. and CG Power and Industrial Solutions Ltd. are in focus on Monday as they announce their earnings for the September quarter.

Other notable names announcing their Q2 results on Monday include Cyient DLM Ltd., Route Mobile Ltd., City Union Bank Ltd., Union Bank of India, Supreme Petrochem Ltd. and Swaraj Engines Ltd.

UltraTech Cement, a Aditya Birla Group's cement manufacturer, is expected to post a decline in net revenue by 1.88% to Rs 15,711.18 crore and an operating profit decline of 9.3% to Rs 2,314.2 crore YoY.

Newly listed Bajaj Housing Finance will also be announcing its earnings for the first time post-listing.