ITV

Category: Financials

  • Pocket FM’s Rs 1,000 crore revenue milestone: Growth soars 500 per cent YoY

    Pocket FM’s Rs 1,000 crore revenue milestone: Growth soars 500 per cent YoY

    Mumbai: Imagine a world where your favorite stories come alive—not on screens, but in your ears, whispering adventures and drama as you multitask through life. When binge-watching wasn’t an option, Pocket FM became your storytelling savior, transforming mundane chores and long commutes into thrilling escapades. Today, the platform that brought you gripping audio series at the tap of a finger is basking in the spotlight, shattering records with its meteoric rise.

    In an extraordinary leap, Pocket FM has surged past the Rs 1,000 crore revenue milestone in FY 2024, marking an awe-inspiring 496 per cent year-on-year growth from Rs 176.36 crore in FY 2023. This groundbreaking success cements the company’s status as a trailblazer, combining innovative storytelling, microtransactions, and global ambition to rewrite the rules of entertainment. As it inches closer to profitability, Pocket FM’s journey serves as an inspiring masterclass in turning sound waves into success stories.

    Pocket FM reported a global revenue of Rs 1,051.97 crore, bolstered by significant growth in subscription and advertising revenue. This rapid expansion comes alongside a 21 per cent reduction in global losses, from Rs 208 crore in FY 2023 to Rs 165 crore in FY 2024, highlighting its strategic push towards operational efficiency.

    Financial highlights: A year of remarkable transformation

    Subscription Revenue Growth:
    The platform’s subscription revenue skyrocketed, increasing nearly sixfold from Rs 160.05 crore in FY 2023 to Rs 934.73 crore in FY 2024. This growth reflects the platform’s ability to build a thriving community of paid users, largely driven by its innovative microtransaction model.

    Advertising Revenue Expansion:
    Advertising revenue increased over seven times, from Rs 12.5 crore to Rs 89.34 crore, underscoring the platform’s growing attractiveness for advertisers.

    Enhanced Operational Efficiency:
    Pocket FM’s expense-to-earnings ratio improved significantly, from 2.18 in FY 2023 to 1.16 in FY 2024, illustrating the company’s disciplined approach to cost optimisation.

    Loss Reduction:
    Losses decreased by Rs 43 crore, down from Rs 208 crore in FY 2023 to Rs 165 crore in FY 2024, reinforcing the company’s commitment to profitability.

    Pocket FM

    Pocket FM has reshaped entertainment through its serialised audio storytelling model. Over 30 audio series have each surpassed the Rs 10 crore revenue milestone, with seven series crossing Rs 100 crore—a testament to the platform’s robust content pipeline. Additionally, the platform leveraged artificial intelligence (AI) to produce over 40,000 audio series, contributing Rs 25 crore to its revenue.

    With over 100 billion minutes of streaming powered by its 200-million-strong listener community, the platform has also recorded 45 million transactions through its microtransactions model.

    While India remains a core market, Pocket FM is making aggressive strides in global markets like the United States, Europe, and Latin America. The company’s investments in localised content, advanced technology, and strategic user acquisition have bolstered its international footprint, positioning it as a global leader in entertainment innovation.

    “This growth reflects our relentless efforts to redefine the entertainment landscape. With a sharp focus on leveraging AI, we are not only enhancing operational efficiency but also creating smarter processes that optimise content delivery and monetisation. Our vision remains clear: to establish Pocket FM as a global entertainment platform that consistently pushes the boundaries of content experiences.” said Pocket FM, CFO, Anurag Sharma.

    Anurag sharma

    Pocket FM’s success is an inspiring example of a tech-driven company prioritising scalability while staying on the path to profitability. As it continues to redefine the entertainment landscape, the company’s disciplined growth strategy, innovative storytelling approach, and global ambitions place it on an upward trajectory in the ever-evolving world of digital content.

  • A paint giant’s growth slows as net profit slides to 42.4 per cent

    A paint giant’s growth slows as net profit slides to 42.4 per cent

    Mumbai: In a season marked by dampened demand, economic pressures, and persistent monsoons, Asian Paints saw a dip in performance during Q2 of FY25. The company’s consolidated net sales for the quarter reached Rs 8,003 crores, down 5.3 per cent from Rs 8,451.9 crores in the previous year. The period was particularly challenging for the domestic decorative business, impacted by low consumer sentiment, extensive rains, and floods in key regions, marking a volume decline of 0.5 per cent and a revenue decrease of 6.7 per cent.

    Asian Paints’ standalone financials also reflect these struggles. The standalone net sales fell by 6.5 per cent, reaching Rs 6,840.6 crores compared to Rs 7,315.7 crores in Q2 FY24. The company’s efforts to adjust its pricing, with reductions last year and selective increases this quarter, had limited impact on countering the cost pressures from raw material prices and sales expenses, hitting the operating margins substantially. For Q2, the standalone PBDIT margin decreased to 16.4 per cent, a decline of 530 basis points from last year.

    The strategic decisions on pricing have had a notable impact on Asian Paints’ bottom line. Although the firm implemented price increases during Q2, the benefits are expected to manifest only in the second half of the year, while ongoing cost pressures from raw materials and elevated sales expenses strained Q2 margins. The consolidated PBDIT margin narrowed to 15.5 per cent, down 480 basis points from last year’s 20.3 per cent. Net profit after tax, excluding exceptional items, saw a sharp 42.4 per cent reduction, sliding to Rs 694.6 crores.

    Exceptional items further dampened the quarter’s results, including a Rs 180.1 crore impairment loss, which affected goodwill on acquisitions like White Teak and Weatherseal in addition to foreign exchange losses associated with subsidiary operations in Ethiopia.

    Despite the challenging quarter, Asian Paints’ Industrial Business displayed resilience. General Industrial, Protective Coatings, and Refinish segments reported decent growth, providing some support against the broader revenue challenges. In international markets, however, the effects of currency devaluation in Ethiopia, Egypt, and Bangladesh weighed heavily, contributing to a revenue decline of 0.7 per cent. On a constant currency basis, though, the segment achieved an 8.7 per cent growth rate, underscoring the strength of Asian Paints’ offerings despite global economic pressures.

    Asian Paints’ Home Décor category experienced growth through its Beautiful Homes network, albeit below expectations. In the Bath Fittings and Kitchen segments, sales growth was steady, with bath fittings recording a 2.1 per cent increase to Rs 83.1 crores and the kitchen business up by 8.8 per cent to Rs 105.3 crores. Yet, profit margins in these segments were under pressure, as the Kitchen business posted a slight loss in Q2 despite increased sales.

    Meanwhile, White Teak and Weatherseal, recent acquisitions within the decor portfolio, continued to benefit from synergies with Asian Paints’ distribution network. White Teak’s Q2 sales rose by 19.2 per cent to Rs 31.1 crores, while Weatherseal saw a 4.8 per cent increase to Rs 13.2 crores.

    As Asian Paints enters the latter half of FY25, it faces ongoing pressures in both domestic and international markets. With anticipated easing of material costs and the impact of recent price increases expected to flow through, the company foresees margin improvement in the coming quarters.

    Key Financial Highlights:

    •    Q2 FY25 Consolidated Net Sales: Rs 8,003 crores, down 5.3 per cent YoY

    •    Standalone Net Sales: Rs 6,841 crores, down 6.5 per cent YoY

    •    Consolidated PBDIT Margin: 15.5 per cent, down 480 bps from last year

    •    Standalone PBDIT Margin: 16.4 per cent, down 530 bps from last year

    •    Net Profit (post-minority interest): Rs 694.6 crores, down 42.4 per cent YoY

  • Raj TV’s financial woes deepen despite 53 per cent revenue surge

    Raj TV’s financial woes deepen despite 53 per cent revenue surge

    Mumbai: Raj Television Network Limited, a longstanding player in the regional media landscape, reported its unaudited financial results for Q2 FY2025. The results reveal a downward trend in profitability and rising operational expenses, challenging the company’s financial stability. Despite a 53 per cent revenue boost to Rs 359.3 million from Rs 234.5 million in the prior year, this increase did not translate into profitability. The high costs, notably a 77 per cent surge in cost of revenue to Rs 293 million, outpaced revenue growth, resulting in a net loss of Rs 168 million for the quarter, a stark contrast to a modest profit of Rs 217,000 in Q2 FY2024.

    Operating expenses surged by 35 per cent year-over-year, driven by escalating costs in core functions. Employee benefits decreased marginally by 6 per cent, reflecting cost-control efforts, yet operational expenses remained high. Finance costs increased by over 60 per cent, reaching Rs 10.3 million, which, combined with increased borrowing, amplified the financial strain.

    Balance sheet liabilities reflect rising pressures; current liabilities rose by nearly 39 per cent, with trade payables ballooning from Rs 60.5 million to Rs 145.4 million, signalling cash flow challenges. Current assets, meanwhile, were relatively static, highlighting potential liquidity constraints. Cash and cash equivalents diminished significantly to  Rs 3.3 million, a steep decline from  Rs 26.7 million at the beginning of the fiscal year.

    Raj Television’s pivot to higher revenue has yet to offset its expenditure growth, underscoring the need for strategic intervention to address profitability and cash flow. Going forward, Raj TV faces a critical need for fiscal recalibration to stabilise and reduce rising debt.

    Financial highlights for Raj Television Network’s Q2 FY2025 performance:

    1. Revenue Growth: Revenue rose by 53 per cent to Rs 359.3 million, up from Rs 234.5 million in Q2 FY2024.

    2.   Net Profit : The company reported a net loss of Rs 168 million, compared to a modest profit of Rs 217,000 in the same quarter last year.

    3.  Operational Expenses : Total expenses surged by 35 per cent year-over-year

    4. Cost of Revenue : Cost of revenue rose sharply by 77 per cent, reaching Rs 293 million.

    5. Employee Benefits : Employee costs decreased by 6 per cent year-over-year.

    6. Finance Costs: Finance expenses increased over 60 per cent, totaling Rs 10.3 million, exacerbated by increased borrowing.

    7. Trade Payables: Current liabilities, including trade payables, jumped 39 per cent, rising from Rs 60.5 million to Rs 145.4 million.

    8. Cash Flow: Cash and cash equivalents dropped significantly to Rs 3.3 million, down from Rs 26.7 million at the fiscal year’s start.

  • RCOM reports mixed Q2 amid insolvency struggles

    RCOM reports mixed Q2 amid insolvency struggles

    Mumbai: In the latest financial disclosure, Reliance Communications Limited (RCOM) reported its unaudited standalone and consolidated financial results for the quarter and half-year ending 30 September 2024. The announcement, dated 9 November 2024, was made under the oversight of the resolution professional, Anish Niranjan Nanavaty, as the company remains under corporate insolvency resolution since 28 June 2019.

    For the quarter ending 30 September 2024, RCOM’s consolidated total income stood at Rs 97 crore, reflecting a slight decrease from Rs 100 crore in the previous quarter. The company reported an operating loss of Rs 32 crore, widening from a loss of Rs 19 crore in the preceding quarter. The net loss for the quarter was Rs 1,060 crore, an improvement from the Rs 1,965 crore loss reported in the previous quarter.  

    The operating margin for the quarter was -32.99 per cent, compared to -19 per cent in the previous quarter, indicating increased operational challenges. The depreciation and amortisation expenses rose to Rs 34 crore from Rs 32 crore, suggesting ongoing capital expenditure and asset utilisation.

    Since the initiation of the insolvency process in June 2019, RCOM has faced multiple operational and structural obstacles, with the National Company Law Tribunal overseeing its recovery and management efforts. The impact of these challenges is evident in the subdued financial performance across segments. Cost-cutting initiatives, though visible, remain inadequate to counterbalance the income reductions from discontinued services and stagnant growth.

    As RCOM pivots its strategy to maximise value during insolvency proceedings, its existing customer base and asset utilisation are pivotal to short-term stabilisation. Nonetheless, substantial debt obligations and restricted access to capital raise questions about RCOM’s capability to weather the long-term implications of market pressures without a viable merger or acquisition plan.

    Key Financial Highlights

    •    Total Income: Rs 97 crore (Q2 FY2024-25)

    •    Operating Loss: Rs 32 crore

    •    Net Loss: Rs 1,060 crore

    •    Operating Margin: -32.99 per cent

    •    Depreciation/Amortisation: Rs 34 crore

    These figures reflect the company’s ongoing efforts to manage its financial health amid challenging circumstances.

    The future trajectory of RCOM hinges largely on its restructuring efforts and external support from potential investors. While the telecom industry’s competitive intensity shows no signs of abating, any potential buyer would inherit both the legacy issues and opportunities presented by RCOM’s extensive infrastructure. Stakeholders continue to monitor how RCOM will leverage or offload these assets within the constraints of its insolvency resolution process.

     

  • Adani Power Q2 FY25 profits dwindle amid rising fuel costs and debt

    Adani Power Q2 FY25 profits dwindle amid rising fuel costs and debt

    Mumbai: In a market increasingly driven by challenges, Adani Power’s Q2 FY25 financial report paints a bleak picture. With a consolidated profit of Rs 3,297.52 crores—a sharp decrease from last year’s Rs 6,594.17 crores—the company finds itself navigating rising fuel costs and increased debt obligations that are quickly eroding its bottom line.

    Adani Power’s Q2 revenues showed marginal growth to Rs 13,338.88 crores, a slight rise from Rs 12,990.58 crores in Q2 FY24. However, this pliability is overshadowed by mounting expenses, particularly in fuel costs, which surged by 4 per cent year-over-year to Rs 7,032.22 crores. As the company relies heavily on imported coal, volatile global energy prices have sharply impacted operating costs, squeezing profit margins even further.

    The debt situation poses a critical challenge. The company’s consolidated finance costs stood at Rs 806.87 crores, indicating a substantial debt load that continues to swell. Adani Power’s current liabilities reached an alarming Rs 52,788.77 crores, up from Rs 49,179.74 crores just a year ago. With recent borrowings amounting to Rs 5,000 crores, the company’s strategy to navigate debt remains a question mark for investors.

    Adding to the financial strain, deferred tax expenses have spiked, with an expense of Rs 706.30 crores in Q2 FY25 compared to a tax credit last year. Coupled with a reduction in net profit and mounting tax liabilities, the company’s financial health appears fragile, risking potential downgrades from creditors.

    In Q2, the board also approved an amalgamation with Adani Power Jharkhand, a move intended to streamline operations. Despite the expected efficiencies, this restructuring might not yield immediate financial benefits, adding complexity to an already stressed balance sheet.

    While Adani Power continues to expand its portfolio, these fiscal pressures pose significant hurdles. The immediate challenge lies in addressing fuel costs and debt servicing, with failure to mitigate these factors likely to strain cash flows and diminish investor confidence.

  • Firstsource Solutions reports strong Q2 FY25 growth despite market headwinds

    Firstsource Solutions reports strong Q2 FY25 growth despite market headwinds

    Firstsource Solutions Limited, a prominent player in business process services under the RP-Sanjiv Goenka Group, delivered a commendable Q2 FY25 performance, showcasing resilience amid market challenges. The company reported a revenue of Rs 19,254 million (US $230 million) for the quarter ending 30 September 2024, marking a robust 25 per cent increase year-on-year. Profit after tax (PAT) rose by 9.3 per cent to Rs 1,382 million, underscoring steady profitability despite economic pressures.  

    The results reflect a consistent growth trajectory, with Firstsource raising its FY25 constant currency revenue growth guidance to 19.5-20.5 per cent, up from the previous 11.5-13.5 per cent estimate. Operating margins for the fiscal year are projected to stabilise between 11-11.5 per cent, excluding acquisition-related charges.  

    The company attributed its growth to strategic contract wins across sectors. These included a transformative multi-tower deal with a leading Australian telecom company and a five-year digital transformation engagement with a top five US mortgage provider. The healthcare vertical reported the addition of five new clients, expanding its reach in revenue cycle management. Communication, Media, and Technology segments also performed strongly, securing new clients, including a major US online marketplace.  

    Firstsource’s acquisition of Ascensos, a UK-based customer experience outsourcing company, was a significant highlight, further enhancing the company’s nearshore capabilities and expanding its retail sector footprint. This acquisition, valued at GBP 42 million, will contribute around 5 per cent to revenue growth over seven months of FY25.  

    The quarter saw EBIT reach Rs 2,081 million, growing 27.3 per cent YoY, with an EBIT margin of 10.8 per cent. This was achieved despite one-time charges, highlighting strong operational efficiencies. For the half-year ending September 2024, revenue rose 21.1 per cent YoY to Rs 37,165 million, while PAT climbed 8.3 per cent to Rs 2,735 million, reflecting the company’s ability to balance growth investments with profitability.  

    Employee benefits expenses rose to Rs 12,104 million in Q2, up from Rs 9,402 million in the same period last year, driven by increased headcount and talent investments. Attrition showed signs of improvement, falling to 31 per cent as a result of the company’s retention initiatives.  

    Amid economic uncertainty, Firstsource continued to outperform the market through strategic expansion and sectoral diversification. The banking and financial services segment delivered revenue growth to Rs 6,641.56 million, while the Healthcare division saw revenue surge 39 per cent to Rs 7,025.18 million.  

    The company’s focus on automation and AI-driven solutions positioned it to meet clients’ evolving needs. This included launching new language models for mortgage processing and expanding digital collections platforms.  

    Looking ahead, Firstsource remains optimistic, guided by a strategy that emphasises client-centric growth, technology investments, and sustainable business practices. The company’s recent ESG report for FY24 and inaugural TCFD report further underscore its commitment to transparent governance and responsible growth.  

  • Bharti Hexacom Q2 boasts 20.7 per cent revenue surge and data growth

    Bharti Hexacom Q2 boasts 20.7 per cent revenue surge and data growth

    Mumbai: Imagine a day without the internet—no streaming the latest movies, no WhatsApp pings from friends, no emails to explain running late to the boss. Digital silence. Yet, as our lives entwine ever more with digital connectivity, Bharti Hexacom emerges as a robust architect of India’s digital future. In Q2 FY25, the telecom powerhouse posted an impressive 20.7 per cent year-on-year revenue jump, reaching Rs 20,976 million. Fueled by strategic expansions in mobile and broadband, Bharti Hexacom shows unyielding momentum. With mobile data usage surging 29.7 per cent, and bolstered by solid infrastructure investments, the company signals a steadfast commitment to enhancing the nation’s digital ecosystem.

    The quarter’s revenue growth was propelled by Bharti Hexacom’s core mobile services, which registered a substantial 20 per cent year-on-year increase, reaching Rs 20,433 million. This growth trajectory was bolstered by ‘tariff repair’ initiatives and a strategic focus on acquiring quality customers, leading to an Average Revenue Per User (ARPU) increase to Rs 228, a 16.3 per cent rise from Rs 196 in Q2 FY24. Homes and Office services also saw revenue growth, up by 19.8 per cent YoY, with net customer additions reaching an impressive 30,000, marking the highest quarterly growth in this segment.

    The company’s EBITDA rose by 21.8 per cent YoY to Rs 10,464 million, supported by the operational efficiency initiatives that helped to widen EBITDA margins to 49.9 per cent from 49.4 per cent last year. However, EBIT margin slightly contracted by 24 basis points to 24.3 per cent amid escalating competition and increased operational costs. Net income, a noteworthy figure, reached Rs 2,531 million—transforming a year-over-year loss into a profitable position and reflecting a robust 237 per cent growth after accounting for exceptional items.

    Bharti Hexacom’s capital expenditure of Rs 4,465 million in Q2 FY25 has enabled the rollout of over 200 network towers and 407 mobile broadband stations, primarily across Rajasthan and the North East. This investment complements the recent acquisition of an additional 15 MHz spectrum, allowing for enhanced connectivity and user experience. Bharti Hexacom’s pioneering AI-driven spam detection tool—India’s first by a telecom provider—was also launched this quarter to improve customer satisfaction.

    Mobile data consumption demonstrated a robust year-over-year growth of 29.7 per cent, reaching 1,524 PB, driven by a rise in smartphone users, which grew by 11.3 per cent YoY. The segment saw significant usage, with data consumption averaging 25.9 GB per user per month, reinforcing Hexacom’s position as a digital leader amid rising demand for mobile data.

    The Homes and Office services unit continues its growth trajectory, expanding high-speed broadband services to 103 cities and leveraging partnerships with local cable operators to reach a wider base. This strategic extension allowed the segment to achieve a 20 per cent revenue increase year-over-year, with 30,000 new customer additions in the last quarter. ARPU for home broadband stabilised at Rs 509, a reflection of steady demand despite sectoral pricing adjustments.

    The current Debt-to-EBITDA ratio, including lease impacts, stands at 2.03x, a favourable metric within the industry. Hexacom’s judicious capital allocation and a focus on cost optimisation underpin its positive cash flow, which saw a 123 per cent increase YoY, reaching Rs 5,999 million. As Bharti Hexacom prepares for further digital transformation, these metrics reflect a strong financial foundation poised for sustained growth.

    Bharti Hexacom’s Q2 FY25 performance embodies a strategic blend of innovation, investment, and customer-centric expansion. By focusing on both mobile and broadband sectors, the company has effectively harnessed India’s digital demand surge. Going forward, Hexacom’s robust infrastructure, innovative digital solutions, and a steady financial strategy are expected to maintain its momentum in India’s competitive telecom sector.

  • Bharti Airtel Q2 revenue climbs 11.9 per cent amid market challenges

    Bharti Airtel Q2 revenue climbs 11.9 per cent amid market challenges

    Mumbai: In today’s hyper-connected world, the humble phone holds humanity’s pulse, powered by a SIM card—its vital link to the digital realm. But behind this connectivity lies a cascade of dependencies: the network provider sustaining that link, and, at its core, a financial backbone dictated by balance sheets. Bharti Airtel’s Q2 FY25 financial report lays bare this web of interdependencies, capturing the telecom giant’s ambitious growth amid financial headwinds. With revenues soaring to Rs 414,733 million—an 11.9 per cent leap from last year—Airtel’s resilience shines, especially in India’s mobile sector, where it pulled in Rs 248,371 million. Yet, the ascent isn’t without cost; rising network expenses and the unforgiving drag of foreign currency devaluation temper the gains, revealing the global challenges Airtel must navigate to keep this lifeline pulsing.

    For the quarter ending September 2024, Airtel’s consolidated net profit climbed to Rs 40,580 million, a notable increase from Rs 20,932 million during the same quarter last year. Yet, the rise in profit was tempered by foreign exchange losses, pegged at Rs 8,537 million, primarily due to currency devaluation in the company’s African subsidiaries. These losses highlight the vulnerabilities faced by Airtel as it expands its operations across currency-sensitive regions. Adjusting for foreign exchange impacts, Airtel’s profit before tax stood at Rs 58,974 million, reflecting a growth that would otherwise appear brawny if not for external currency pressures.

    Airtel’s Indian mobile services division continues to anchor its revenue, contributing more than 60 per cent to the top line, with revenue increasing by 18.5 per cent year-over-year. However, in Africa, while revenue reached Rs 101,631 million, a 6.7 per cent dip from last year’s figures signalled challenges in maintaining growth momentum amidst currency fluctuations. These segments underscore Airtel’s reliance on its home market for growth, a dependency that reveals both the stability of domestic demand and the risks associated with global expansion.

    Operating expenses surged to Rs 196,271 million this quarter, reflecting a 12 per cent increase compared to the previous year, driven largely by network expenses, licence fees, and employee benefits. Notably, Airtel allocated Rs 84,652 million toward deferred spectrum payment prepayment to the department of telecommunications (DoT), indicating a strategic choice to reduce long-term liabilities despite the immediate cash flow impact. The company’s strategic spending on infrastructure and spectrum indicates a forward-looking approach, intending to capture future growth through robust network capabilities.

    In Africa, Airtel executed a share buyback, increasing its shareholding from 56.33 per cent to 56.93 per cent. Although this move underscores Airtel’s commitment to its African markets, the venture remains susceptible to currency risks, impacting the consolidated net profit in unpredictable ways. Despite these setbacks, Airtel’s strong operating margin of 26.2 per cent, though slightly lower than last year’s 26.4 per cent, demonstrates the underlying strength of its service model, even as profit margins came under pressure from inflationary and currency-related costs.

    As Airtel navigates these turbulent waters, the consolidated balance sheet reveals total assets of Rs 4,609,821 million, a 4.5 per cent increase over last year. The company’s financial strategy emphasises its resilience, though Airtel’s debt-to-equity ratio now stands at 1.28, reflecting the capital-intensive nature of telecom. Airtel’s operating cash flows also displayed strength, with Rs 467,341 million generated from operations, a 17 per cent improvement year-over-year, offsetting some of the pressures from increased capital investments.

  • MosChip Technologies surges ahead in QYF25

    MosChip Technologies surges ahead in QYF25

    Mumbai: In an impressive showcase of pliability, MosChip Technologies Ltd reported robust growth in its QYF25 financial results, highlighting significant strides in revenue and profit despite a challenging economic landscape. The company’s consolidated total income surged to Rs 12,663.14 lakhs for the quarter ending 30 September 2024, marking a 74 per cent increase compared to Rs 7,269.73 lakhs in the same quarter last year. This remarkable rise underscores MosChip’s strategic agility and strengthening position within the semiconductor and software systems sectors.

    MosChip’s semiconductor division stood out as a significant contributor to this upward trend, generating Rs 9,854.74 lakhs in revenue this quarter, an impressive jump from Rs 5,638.66 lakhs in the prior year. The software and system design segment also posted robust growth, recording revenue of Rs 2,707.81 lakhs—up 75 per cent from Rs 1,546.80 lakhs last year. This surge reflects the company’s successful expansion into high-demand sectors and its focus on delivering value in software-driven solutions.

    The net profit before tax reached Rs 973.17 lakhs, reflecting a substantial year-over-year increase of 146 per cent from Rs 396.09 lakhs. This growth in profitability, despite rising costs, demonstrates MosChip’s efficient cost management and ability to capitalise on market demand. Profit after tax also exhibited a noteworthy gain, standing at Rs 973.15 lakhs, compared to Rs 362.57 lakhs in the same quarter of 2023—a leap of 168 per cent.

    The company’s operational expenses rose in line with its expansion, with employee benefits reaching Rs 6,378.23 lakhs this quarter, up from Rs 5,211.30 lakhs in Q2 2023. This 22 per cent increase is consistent with MosChip’s strategic hiring to support its growth trajectory, focusing on bolstering expertise in high-value segments. Other critical costs, such as finance expenses, rose slightly to Rs 192.65 lakhs compared to Rs 152.64 lakhs last year, which remains manageable within the context of its higher revenue base.

    Segmented growth highlights the efficacy of MosChip’s diversified approach. The semiconductor business, with earnings before interest, depreciation, and tax (EBITDA) reaching Rs 1,540.47 lakhs, saw a notable increase from last year’s Rs 1,576.24 lakhs, while the software and system design segment sustained an impressive EBITDA of Rs 120.62 lakhs despite a more competitive environment.

    With improved cash generation, MosChip’s cash flow from operations for the half-year rose to Rs 1,571.43 lakhs, compared to Rs 1,727.28 lakhs in the prior year. The company’s balance sheet reflects this cash stability, with an increase in cash and cash equivalents to Rs 599.45 lakhs from Rs 335.31 lakhs as of 31 March 2024.

    MosChip Technologies’ QYF25 results reflect a company thriving through innovative approaches, targeted investments, and a robust operational framework. As the company looks forward, its strategic focus on high-growth sectors promises continued performance improvements, setting a strong foundation for sustained growth.

     

  • Birla Cable’s Q2 FY25: Profit slump despite revenue growth

    Birla Cable’s Q2 FY25: Profit slump despite revenue growth

    Mumbai: In the post-pandemic world, where homes turned into workspaces and streaming hubs, ultra-fast internet became a lifeline, tethering us to a digital reality. But behind those seamless connections lies the backbone of fibre optic networks, powered by companies like Birla Cable. Yet, even as the demand for digital infrastructure surges, Birla Cable finds itself navigating choppy waters. The company’s Q2 FY25 financial results, released on October 24, show revenue climbing, but rising operational costs have squeezed profits, casting a shadow over an otherwise bright sector.

    For Q2 FY25, Birla Cable reported a standalone revenue from operations of Rs 18,171.67 lakh, reflecting a 4 per cent year-over-year increase from Rs 17,470.86 lakh in Q2 FY24. Consolidated revenue also improved, reaching Rs 18,274.92 lakh, up from Rs 17,761.15 lakh in the same quarter last year. This proliferation in revenue, while encouraging, wasn’t sufficient to shield the company’s profit from erosion due to escalating costs.

    Net profit for the quarter plummeted drastically to Rs 200.49 lakh on a standalone basis—a 62 per cent dip compared to Rs 529.80 lakh in Q2 FY24. The consolidated profit mirrored this trend, declining to Rs 181.97 lakh from Rs 504.65 lakh the previous year. The profit drop was intensified by rising raw material costs, which reached Rs 14,426.19 lakh for standalone operations—a 5.7 per cent increase from the preceding quarter.

    Operational costs across the board contributed to the decline in profitability. Total expenses rose to Rs 18,013.94 lakh, a significant jump from Rs 17,060.28 lakh in Q2 FY24. Employee expenses stayed steady at approximately Rs 840 lakh, while finance costs soared to Rs 395.05 lakh from Rs 327.87 lakh in the previous year. Depreciation expenses added further strain, climbing to Rs 383.01 lakh, indicating investments in infrastructure that are yet to yield returns.

    One bright spot was the other comprehensive income (OCI), which surged to Rs 1,683.36 lakh from Rs 661.69 lakh in the prior year on a standalone basis. However, this gain primarily reflected revaluations in investment portfolios and other non-core elements, which have limited impact on operational performance.

    The cash flow statement shows a decline in cash and cash equivalents to Rs 10.19 lakh by the end of Q2, a stark reduction from Rs 23.30 lakh in the same period last year. This drop stems from increased operating expenses and reduced cash generation, with net cash flow from operating activities down to Rs 5,082.14 lakh. This cash compression hints at tighter liquidity, potentially influencing the company’s future capital expenditures.

    Birla Cable’s Q2 FY25 financial results underscore a revenue-positive but profit-challenged quarter, reflecting the complex interplay of market demand and rising costs. As a leader in India’s cable manufacturing sector, Birla Cable’s future profitability will likely depend on its capacity to manage costs amidst fluctuating raw material prices and financial expenses. While revenue growth suggests demand resilience, sustaining profitability will require cost discipline and a favourable macroeconomic environment.