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Tag: financial performance

  • Nettlinx Q3 results shine PAT of Rs 13.87 lakh despite sector challenges

    Nettlinx Q3 results shine PAT of Rs 13.87 lakh despite sector challenges

    MUMBAI: In the wild, ever-changing jungle of technology and network solutions, Nettlinx Limited has swung in with its financial results for the quarter and nine months ended 31 December 2024.

    But before we dissect those numbers, let’s meet the lion leading the pride – Nettlinx’s visionary managing director Manohar Loka Reddy, the kind of leader who turns challenges into stepping stones—and let’s not forget, he’s worth a pretty penny himself! With Nettlinx’s market cap roaring at Rs 172.62 crore, this Telangana-based powerhouse is proving it’s not just surviving the tech-sector jungle but thriving.

    Founded in 1994, the company started as a regional player, quietly building its empire. Fast-forward to today, and Nettlinx has muscled its way into the big leagues of tech stalwarts.

    So, what’s the secret sauce behind their rise? Is it Reddy’s razor-sharp vision, the team’s unyielding dedication, or maybe a pinch of both? Let’s not forget—every stronghold needs its moat, and Nettlinx seems to have found just that.

    Despite the stormy weather of economic headwinds, Nettlinx’s ship has stayed the course, delivering solid standalone and consolidated performances. With such a rich history and an inspiring trajectory, the company’s tale of growth and grit continues to keep investors intrigued and stakeholders on the edge of their seats. The big question, though, remains: Can Nettlinx keep the magic alive in the quarters to come?

    Standalone Results

    The quarter witnessed Nettlinx achieving standalone revenue from operations of Rs 777.45 lakh, a 6.1 per cent increase over the preceding quarter’s Rs 733.40 lakh. With additional contributions from other income, totalling Rs 4.49 lakh, the company’s standalone income reached an impressive Rs 781.94 lakh. EBITDA for the quarter came in at Rs 109.66 lakh, and PAT was Rs 13.87 lakh, reflecting a promising recovery from the narrow profit margins seen in Q2. Clearly, Nettlinx isn’t just surviving; it’s thriving. Who knew numbers could look this good?

    For the nine-month period, standalone revenues soared to Rs 2,417.56 lakh, marking a 12 per cent increase compared to the Rs 2,162.13 lakh reported in the same period last year. EBITDA for these nine months stood at Rs 314.18 lakh, and PAT registered a steady Rs 54.05 lakh.

    The performance suggests that Nettlinx has found its rhythm, balancing growth with operational efficiency. Still, can they iron out inefficiencies lurking beneath?

    Consolidated Results

    In Q3 FY25, consolidated results brought a show-stopping total income of Rs 1,592.59 lakh, while EBITDA flexed its muscles at Rs 467.42 lakh. PAT for the quarter stood at Rs 173.58 lakh, a testament to the company’s ability to maintain profitability in a challenging market environment. Nettlinx’s financial workout routine seems to be paying off. Can it keep up this streak without pulling a muscle?

    Over the nine months ending December 2024, consolidated revenues surged to Rs 2,477.66 lakh, showing consistent growth across all fronts. EBITDA hit a robust Rs 680.76 lakh, and PAT reached Rs 242.54 lakh. With earnings per share (EPS) at Rs 2.78, shareholders have every reason to celebrate. However, administrative expenses—the financial equivalent of carrying extra weight—remain a concern.

    Will Nettlinx embrace the Marie Kondo method to declutter its cost structure?

    Nettlinx’s resilience begs the question: How does the company sustain its upward trajectory despite market volatility? Is its diversified subsidiary structure the safety net it appears to be, or are there untapped potential efficiencies yet to be unlocked?

    Exceptional items, including a Rs 2.92 lakh provision, highlight the company’s cautious risk management strategy. Yet administrative expenses surged to Rs 442.79 lakh, calling for a closer look at streamlining operations.

    Key financial highlights

    .  Standalone EBITDA: Improved by 15 per cent, reaching Rs 109.66 lakh.

    .  Depreciation: Increased to Rs 80.18 lakh, reflecting sustained infrastructure investments.

    .  Earnings per Share (EPS): Stabilised at Rs 1.79 per share (basic and diluted) in Q3.

    .  Consolidated Operating Margin: Marginally improved to 18 per cent, signalling steady subsidiary performance.

    .  Administrative Costs: Increased, warranting cost rationalisation.

    As Nettlinx moves forward, its commitment to innovation and expanding its digital ecosystem remains evident. The company’s efforts to enhance its network capabilities are likely to strengthen its market presence in the coming quarters.

    The financial results underscore a dual narrative. On one hand, Nettlinx is showcasing solid growth. On the other hand, it needs sharper focus on profitability and cost containment. Investors and stakeholders alike will be keenly watching how the company navigates the evolving landscape while turning revenue gains into sustainable net income.

     

  • Media Matrix Worldwide surges despite mixed Q2 results

    Media Matrix Worldwide surges despite mixed Q2 results

    Mumbai: The financial landscape for Media Matrix Worldwide Limited (MMWL) in Q2 FY25 paints a nuanced picture, juxtaposing robust revenue growth with strained profitability. With consolidated revenue from operations skyrocketing by 44.5 per cent YoY to Rs 1,35,688.52 lakh, the company has demonstrated remarkable top-line momentum. However, mounting expenses and shifts in inventory dynamics tempered the gains, reflecting the challenges of navigating an evolving business ecosystem.

    Media Matrix’s consolidated revenue from operations surged, bolstered by a significant increase in the trading of electronic items. Compared to Rs 93,756.58 lakh in the corresponding quarter of FY24, the latest figures underscore a well-executed growth strategy. The sale of services, though contributing a modest Rs 304.15 lakh, remained stable, affirming the firm’s diversified revenue streams.

    Despite the impressive revenue trajectory, the company’s net profit declined to Rs 205.54 lakh, down from Rs 307.14 lakh a year ago. The dip largely stems from a substantial increase in finance costs, up 54.3 per cent to Rs 657.25 lakh, reflecting higher borrowings during the period. Other factors, including a rise in employee benefit expenses by 14 per cent, added further pressure to the bottom line.

    Operational Highlights

    – Inventory Adjustments: Changes in inventory of stock-in-trade significantly reduced expenses by Rs 2,240.92 lakh, indicating efficient stock management.

    – Employee Costs: Employee benefit expenses rose to Rs 249.66 lakh, up from Rs 218.95 lakh YoY, showcasing investments in human capital.

    – Depreciation: Marginally increased to Rs 39.81 lakh, signifying sustained investment in operational infrastructure.

    Notably, the quarter’s other comprehensive income recorded a dramatic turnaround, moving from a gain of Rs 3,280.91 lakh last year to a loss of Rs 2,089.96 lakh. This shift is attributed to fair value changes in investments held by subsidiaries, reflecting broader market volatility.

    Cash flows from operations reflected a net outflow of Rs 4,390.10 lakh, contrasting starkly with the inflow of Rs 3,057.53 lakh reported for FY24. However, the company’s liquidity position strengthened, with cash and cash equivalents rising sharply to Rs 470.93 lakh from Rs 89.40 lakh, thanks to effective management of short-term borrowings.

    Media Matrix Worldwide continues to capitalise on its expertise in digital media and electronics trading. However, the dual challenges of rising finance costs and a volatile investment climate demand strategic recalibration. While the revenue trajectory inspires confidence, sustaining profitability in the face of external headwinds will be key to maintaining investor trust.

  • Sambhaav Media’s Q2 shows revenue surge by three per cent

    Sambhaav Media’s Q2 shows revenue surge by three per cent

    Mumbai: Sambhaav Media Limited (SML) unveiled its Q2 FY25 financial results, revealing a mixed bag of growth and challenges. For the quarter ending 30 September 2024, the company recorded a standalone revenue of Rs 965.78 lakhs, marking a marginal increase of three per cent from Rs 940.78 lakhs in Q2 FY24. Consolidated revenue also rose to Rs 1,068.02 lakhs, showcasing a five per cent uptick from the prior year.

    However, profitability took a hit. Standalone net profit slumped to Rs 26.20 lakhs, a stark decline from Rs 35.25 lakhs in the same period last year. The consolidated loss widened, with the bottom line falling into the red at Rs -20.27 lakhs compared to a profit of Rs 14.75 lakhs in Q2 FY24.

    The media and allied business contributed Rs 776.81 lakhs to total revenue, supported by a seven per cent increase in advertising contracts. Technology and allied services added Rs 188.97 lakhs, displaying resilience despite global headwinds. The combined revenue from operations for the half-year stood at Rs 1,752.51 lakhs, up 6 per cent year-over-year, signalling stable demand for the company’s offerings.

    Total expenses for the quarter escalated by eight per cent, reaching Rs 979.77 lakhs on a standalone basis. Employee benefits saw a notable increase, rising by 12 per cent to Rs 88.23 lakhs, reflecting investments in talent retention. Broadcasting expenses grew by 9 per cent, primarily driven by higher content acquisition costs.

    Depreciation expenses rose slightly, while finance costs declined by four per cent, suggesting effective debt management. Despite these efforts, the operating profit margin narrowed significantly due to increased provisions for taxation and other operating expenses.

    SML faced higher tax provisions during Q2, which included deferred tax adjustments amounting to Rs 12.59 lakhs. Additionally, an exceptional loss of Rs 6.00 lakhs from discontinued operations impacted the consolidated bottom line. This stemmed from the strategic exit from GSRTC’s public entertainment contract, finalised last year, to optimise operational focus.

    The company continues to invest in technological innovation and content diversity, which are crucial for long-term growth. While profitability remains a concern, management expressed confidence in navigating these challenges through strategic cost management and revenue diversification.

    Key priorities for the coming quarters include addressing tax liabilities and optimising operational efficiency. As of 30 September 2024, the company’s consolidated net worth stood at Rs 8,553.14 lakhs, indicating a solid financial foundation to weather temporary setbacks.

  • Britannia Industries shows 5.3 per cent YoY revenue growth in Q2

    Britannia Industries shows 5.3 per cent YoY revenue growth in Q2

    Mumbai: As a child, I fondly remember reaching for Britannia’s Good Day cookies, drawn in by the promise that even on a rough day, those cookies could spark a smile. This quarter, it seems Britannia itself enjoyed a ‘Good Day’ as it reported resilient financial results for Q2, ending September 2024. The company’s total revenue from operations rose to Rs 4,667.57 crore, a 5.3 per cent increase year-on-year, driven by surging domestic demand, a broadened product range, and expanded distribution across India’s rural and urban sectors. Yet, while revenue painted a bright picture, profitability revealed a bit more complexity. Net profit declined by around 9.4 per cent to Rs 531.55 crore, reflecting the pressures of rising costs that have started to weigh on margins.

    The quarter’s revenue increase was complemented by other operating income, totaling Rs 4,713.57 crore, which is a notable rise from Rs 4,485.23 crore in Q2 FY24. Despite this uptrend in revenue, Britannia’s profitability faced headwinds. The company’s cost of materials soared by 12.9 per cent, amounting to Rs 2,578.05 crore, signaling intensified raw material cost burdens. Additionally, employee benefits expenses reached Rs 232.28 crore, up by 45.3 per cent year-on-year, reflecting Britannia’s focus on workforce expansion and talent retention amid a competitive labor market.

    VC & MD, Varun Berry said, “An eight per cent volume growth with a sequential increase in revenue and operating profits are satisfactory results in the face of severe commodity inflation leading to a tepid consumer demand scenario in most FMCG categories.”

    The profit before tax, after adjusting for exceptional items, stood at Rs 715.15 crore, a decrease from Rs 798.63 crore reported in the same quarter last year. Tax expenses further tightened the profit margin, with total tax outflows recorded at Rs 183.60 crore. This leaves the net profit for the quarter at Rs 531.55 crore, showing a decline from Rs 586.50 crore in Q2 FY24. Britannia’s operational expenses also contributed to the contraction in net margins, rising by 11.1 per cent to Rs 3,994.87 crore, primarily due to inflationary pressures on logistics and supply chain costs.

    The company reported consolidated sales of Rs 4,566 crore for Q2, a year-over-year growth of 4.5 per cent. However, profit after tax (PAT) decreased by 9.6 per cent to Rs 531 crore. Compared to the prior quarter, sales rose by 10.6 per cent, with a 5.1 per cent PAT increase. For the six months ending 30 September 2024, sales grew 4.3 per cent year-on-year, while PAT declined by 0.8 per cent. The results highlight Britannia’s sales resilience amidst economic challenges, though profitability remains impacted by rising costs and workforce investments.

    A notable development during this quarter was Britannia’s exceptional expenses totaling Rs 24.79 crore, largely attributed to voluntary retirement schemes (VRS) for factory workers and associated labor restructuring efforts. These measures are expected to enhance operational efficiency in the long term by streamlining the workforce at key manufacturing facilities. Britannia also invested heavily in contract labor in the wake of increased production targets, a move aimed at reinforcing the company’s manufacturing capabilities to support market demand.

    Despite the contraction in profitability, Britannia’s balance sheet remains solid, with a positive outlook on revenue streams from both domestic and international markets. The ongoing demand for packaged foods and baked goods continues to present a strong growth trajectory for the company. “Our agenda of being a ‘Total Global Foods Company’ is progressing well with our adjacent businesses such as Croissant, Milk Shakes, Wafers and International growing at a healthy pace. Making strides in this direction, we are working on redefining our distribution strategy to optimise range distribution and improve outlet servicing, and the preliminary results of the pilots across 25 cities covering more than 50,000 outlets are encouraging” added Berry.

    The company’s total comprehensive income, factoring in other gains, came to Rs 533.01 crore, slightly down from Rs 589.39 crore in Q2 FY24. Additionally, Britannia’s consistent investments in expanding its product portfolio and supply chain suggest a robust setup for future growth, although profitability will likely remain susceptible to fluctuating raw material costs and labor expenses. Berry remarked on the situation, “In the context of steep rise in prices of key commodities such as Wheat, Palm, Cocoa etc, we demonstrated agility in initiating focused pricing actions and identifying new levers for cost optimisation across the value-chain. As a result, we maintained a healthy operating margin of 15.5 per cent during the quarter. We are committed to investing in capability enhancement and brand development with the clear objective of driving market share and sustaining profits”.

    Britannia Industries has demonstrated both resilience and adaptability in a challenging financial environment, marking stable revenue growth yet grappling with cost pressures. The outlook remains cautiously optimistic, bolstered by Britannia’s solid market presence and strategic product diversification.

  • 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.

     

  • Bharat Electronics achieves 39 per cent profit growth in H1 FY25

    Bharat Electronics achieves 39 per cent profit growth in H1 FY25

    Mumbai: Bharat Electronics Limited (BEL), India’s Navratna defense PSU, continues its growth trajectory, reporting robust results for the first half of FY25. A strategic focus on defense innovations has pushed BEL’s performance to new heights, with a substantial increase in profit and a healthy order book. BEL’s success mirrors the ongoing demand for advanced defense technologies in India’s evolving security landscape.

    In the first half of FY25, BEL reported a turnover of Rs 8,530.43 crore, a 15.83 per cent increase over the Rs 7,364.82 crore recorded during the same period last year. This surge in revenue is credited to the rise in domestic defense spending and BEL’s execution of high-value contracts. A deeper dive into the second quarter reveals that BEL achieved a turnover of Rs  4,425.29 crore, up from Rs 3,918.13 crore in the previous year, reflecting a growth rate of over 12.9 per cent.

    Profit-wise, BEL saw a substantial increase, with its Profit Before Tax (PBT) for the first half of FY25 reaching Rs 2,488.22 crore, marking a 40.05 per cent growth from the Rs 1,776.69 crore reported last year. This robust growth in profitability underscores BEL’s strong market position and operational efficiency. The second quarter alone recorded a PBT of Rs 1,450.88 crore, a 35.3 per cent jump from the Rs 1,072.94 crore seen in Q2 FY24.

    Profit After Tax (PAT) similarly demonstrated impressive gains, with BEL posting Rs 1,867.41 crore for the first half of FY25, up by 39.03 per cent compared to Rs 1,343.18 crore in the corresponding period of the previous year. In Q2 FY25, PAT stood at Rs 1,091.27 crore, a notable increase from Rs 812.34 crore in the same quarter last year.

    Adding to this robust performance, BEL’s order book as of 1 October 2024, was valued at Rs 74,595 crore, affirming the company’s strong market position and promising future cash flows. BEL’s strategic push in research and development and its growing portfolio of defense technology solutions are key drivers of this solid order pipeline.

    With defense spending set to rise, BEL’s growth trajectory and financial resilience position it as a vital contributor to India’s self-reliant defense sector. The company’s performance in H1 FY25 exemplifies how strategic investments in technology and strong execution can yield significant returns.

  • Adani Green Energy’s H1 FY25 revenue soars 20 per cent on capacity expansion

    Adani Green Energy’s H1 FY25 revenue soars 20 per cent on capacity expansion

    Mumbai: In a world marred by industrial grime and chemical plumes, a green energy beacon shines brighter than ever. Adani Green Energy Ltd (AGEL) emerges as a trailblazer, showcasing stellar results for the quarter and half-year ending September 30, 2024. The company’s remarkable growth story—driven by ambitious capacity expansion, surging energy sales, and shrewd financial strategies—cements its place at the forefront of India’s renewable energy revolution, where it continues to shape a cleaner, more resilient future.

    The company reported a 16 per cent year-on-year increase in quarterly revenue, reaching Rs 2,309 crores in Q2 FY25, driven by the addition of 2,868 MW in greenfield capacity and consistent plant efficiency. For the half-year period, revenue surged by 20 per cent to Rs 4,836 crores, while EBITDA rose 20 per cent to Rs 4,518 crores, maintaining an industry-leading margin of 92.2 per cent. Cash profit surged by 27 per cent to Rs 2,640 crores, reflecting the company’s operational prowess and disciplined cost management.

    CEO Amit Singh stated, “Our financial performance continues to be strong, driven by significant greenfield capacity additions and robust operational efficiency. Our entry into the commercial and industrial (C&I) segment and the redemption of a $750 million Holdco bond illustrate our commitment to sustainable growth and systematic deleveraging.”

    The recent redemption of the $750 million bond has markedly improved the company’s leverage ratios. This move, combined with a steady increase in operational capacity to 11.2 GW—an impressive 34 per cent year-over-year rise—positions AGEL for further growth. The ambitious development of a 30 GW renewable energy plant in Khavda, Gujarat, promises to set new benchmarks for the sector. The Khavda project is rapidly progressing, with 2 GW of solar and 250 MW of wind capacity already operational.

    The company’s use of advanced technologies like machine learning and AI for operations and maintenance continues to pay off, leading to a reduction in O&M costs. AGEL’s consistent electricity generation has not only met but exceeded annual commitments under power purchase agreements, reaching 57 per cent of the annual target in H1 FY25. Additionally, the company remains a leader in sustainability, maintaining top ESG rankings and setting ambitious decarbonisation targets, with a goal to achieve 50 GW of renewable capacity by 2030.

    While AGEL’s growth trajectory remains strong, the company faces ongoing challenges, including a volatile financing environment and ambitious expansion plans that necessitate substantial capital expenditure. Yet, the consistent reduction in leverage and strategic focus on high-margin segments bode well for sustaining growth. As the renewable energy sector matures, AGEL’s proactive measures and strong operational base position it favourably against its peers.

     

  • Tanla Platforms faces growth hurdles amid mixed Q2 FY25 performance

    Tanla Platforms faces growth hurdles amid mixed Q2 FY25 performance

    Mumbai: Tanla Platforms’ second-quarter results for the fiscal year 2025, disclosed on 17 October 2024, reveal a business grappling with mounting expenses and stagnant revenue. Despite a series of strategic efforts, including the recent ValueFirst acquisition, the cloud communications company encountered a modest revenue decline compared to the previous year, alongside increased operational costs that pressured profitability.

    The company’s revenue from operations dipped to Rs 1,00,072.28 lakh, a slight reduction from Rs 1,00,859.22 lakh in the corresponding quarter last year. Total consolidated income remained nearly flat at Rs 1,01,098.10 lakh, showing only a minimal increase from Rs 1,01,493.34 lakh in Q2 FY24. Meanwhile, expenses surged to Rs 85,025.81 lakh, driven primarily by higher service costs and employee benefits, eroding the gains made from cost-control initiatives earlier in the year.

    “Our continued focus on enhancing operational efficiency has yielded some positive outcomes, but the evolving market dynamics present formidable challenges,” stated Tanla Platforms, chairman and CEO, D. Uday Kumar Reddy. The company’s service costs grew by 0.9 per cent, indicating the struggle to optimise expenses while sustaining the quality of operations.

    Tanla reported a profit before tax of Rs 16,072.29 lakh for the quarter, down from Rs 17,872.33 lakh a year earlier. Net profit attributable to shareholders also declined to Rs 13,021.15 lakh from Rs 14,254.99 lakh in Q2 FY24. The company’s earnings per share fell to Rs 9.70 from Rs 10.60, highlighting the strain on shareholder returns amid rising operational pressures.

    A deeper look at the expenses reveals an escalation in employee benefits, which rose 23 per cent to Rs 5,437.11 lakh, reflecting the cost of retaining talent in a competitive market. Additionally, depreciation and amortisation expenses increased by 3.8 per cent to Rs 2,344.08 lakh, indicating substantial investments in technology and infrastructure.

    The results also underscore Tanla’s ongoing strategic efforts, such as the acquisition of ValueFirst, which are yet to fully realise the anticipated synergies. The financials for the half-year ended 30 September 2024, showed a revenue increase to Rs 2,00,292.77 lakh from Rs 1,91,970.43 lakh in the same period last year, largely attributable to consolidating ValueFirst’s operations. However, profit before tax for the half-year saw a modest decline, signalling potential headwinds ahead.

    Tanla’s current assets increased to Rs 2,24,991.07 lakh, up from Rs 2,03,782.46 lakh as of March 2024, driven by higher trade receivables and cash reserves. This bolstered liquidity provides some buffer, but also raises questions about cash flow management, as trade receivables growth may indicate delayed collections.

    With the CPaaS market becoming increasingly competitive, Tanla faces the challenge of reinvigorating its growth trajectory while managing costs. The company’s reliance on expanding its client base and introducing new product offerings will be pivotal in driving future performance. Investments in digital infrastructure and potential acquisitions may further strain margins in the short term, but could pay off with stronger growth in the long term.

  • HCL Technologies reports strong Q2FY25 with 8 per cent revenue growth

    HCL Technologies reports strong Q2FY25 with 8 per cent revenue growth

    Mumbai: HCL Technologies showcased a robust financial performance for the second quarter of FY25, ending 30 September 2024, with an 8 per cent year-over-year growth in revenue, driven by solid gains across its key business segments. The company’s board of directors, during a meeting on 14 October, approved the unaudited financial results and declared an interim dividend of Rs. 12 per share. This underscores HCL’s commitment to delivering consistent value to its shareholders amid the dynamic global tech landscape.

    The company recorded consolidated revenue from operations amounting to Rs. 28,862 crore, an increase from Rs. 26,672 crore during the same period last year. The growth was fueled by a rise in demand across IT & business services, which contributed Rs. 21,544 crore, and the engineering and R&D services segment, with revenues of Rs. 4,545 crore. HCL software also posted a healthy rise, achieving Rs. 2,773 crore in revenue.

    Profit before tax for the quarter stood at Rs. 5,687 crore, while the net profit reached Rs. 4,237 crore, showing an increase compared to Rs. 3,833 crore in Q2FY24. “Our strong financial performance in Q2FY25 is a testament to the resilience of our diversified business portfolio and our focus on delivering customer-centric innovations,” stated  HCL Technologies, CEO and MD, C. Vijayakumar.

    The approved interim dividend of Rs. 12 per share is set to be paid out on 30 October 2024, to shareholders on record as of 22 October 2024. The company’s ability to sustain dividend payouts reflects its solid financial health and cash flow management.

    HCL Technologies reported a total comprehensive income of Rs. 4,793 crore for Q2FY25. The company’s cash flow from operations reached Rs. 9,349 crore for the six months ending September 2024, underscoring its liquidity position. Total assets amounted to Rs. 99,763 crore, with an equity base of Rs. 68,887 crore.

    The balance sheet showed a slight increase in current liabilities to Rs. 21,626 crore, which aligns with seasonal trends in the technology sector. Non-current liabilities also rose marginally to Rs. 9,250 crore, reflecting increased lease obligations.

    Segment Performance:

    – IT and Business Services: This segment continued to be the primary revenue driver, witnessing a 8.2 per cent growth year-on-year, reaching Rs. 21,544 crore. The segment also recorded improved profitability due to efficiency enhancements.

    – Engineering and R&D Services: The segment saw an impressive 5.9 per cent rise in revenue to Rs. 4,545 crore, buoyed by increased investment in digital engineering initiatives.

    – HCL Software: Showing resilience, the software segment’s revenue increased to Rs. 2,773 crore, backed by strong licensing activity and cloud adoption trends.

    The quarter also marked the divestment of the company’s stake in a joint venture with State Street, generating a gain reflected in the Q1FY25 financials. This strategic move allows HCL to focus on core competencies while streamlining its portfolio.

    Looking forward, HCL Technologies remains optimistic about sustaining growth through digital transformation initiatives, with a particular focus on artificial intelligence and cloud services. While challenges such as global economic uncertainties and fluctuating exchange rates persist, the company’s diversified service offerings and strategic investments are expected to support stable growth.

    Pix courtesy HCL Tech annual report

  • Tips Music achieves 32 per cent revenue growth in Q2, announces Rs 2 interim dividend

    Tips Music achieves 32 per cent revenue growth in Q2, announces Rs 2 interim dividend

    MUMBAIi: Music may soothe the soul, but for companies like Tips Music Ltd. (formerly Tips Industries Ltd.), it is the balance sheet that truly strikes a chord. The company posted robust results for the quarter ending 30 September 2024, with revenues climbing 32 per cent year-over-year to Rs 80.6 crore and profit after tax (PAT) rising by 21 per cent to Rs 48.2 crore. The growth, underpinned by a slate of new releases and increased digital engagement, underscores Tips Music’s strategy of capturing audience attention and expanding its footprint across diverse platforms.

    The company’s operational EBITDA for Q2 FY25 stood at Rs 59.5 crore, a 19 per cent increase from the previous year, with a steady EBITDA margin of 73.8 per cent. For the first half of FY25, revenue totaled Rs 154.5 crore, reflecting a 36 per cent year-over-year increase, while PAT reached Rs 91.7 crore, up by 37 per cent compared to H1 FY24.  

    The content cost for Q2 FY25 surged by 194 per cent to Rs 13.8 crore compared to Rs 4.7 crore in Q2 FY24, demonstrating the company’s strategic investment in acquiring high-quality music content. During the quarter, Tips Music launched a total of 125 new songs, including 39 film songs and 86 non-film songs, catering to diverse audience tastes.  

    Tips Music chairman & MD Kumar Taurani said, “I am pleased to share that the company has announced a second interim dividend for the year of Rs 2 per share, in addition to the interim dividend and buyback conducted in Q1 FY25. Our revenue for the quarter stood at Rs 80.6 crore, up by 32 per cent YOY with a PAT of Rs 48.2 crore increasing by 21 per cent YOY. Our relentless focus is on acquiring high-quality music content.”  

    Added Tips Music  executive director Girish Taurani:  “In Q2 FY25, we successfully launched 125 new songs, resulting in a diverse range of offerings that cater to a wide audience. This quarter, we released two musical short films, Tedi Medi and Beinteha,  both of which have received significant appreciation from the audience. Notable releases include Yaad Reh Jaati Hai  from the film The Buckingham Murders, sung by renowned artist B Praak, and Dua Kijiye, which continue to resonate with our listeners.”  

    Tips Music  CEO Hari Nair highlighted the company’s growing digital presence, stating, “Our YouTube channels’ cumulative subscriber base has now reached 108 million, reflecting our increasing influence and engagement. Our market share on audio digital platforms like Spotify and Saavn is also rising steadily. Additionally, our new brands & partnership  division is gaining traction, with collaborations such as Motorola using our track Rangeela Re‘ to launch its new line of colorful handsets.”  

    For the current fiscal year, Tips Music has declared a total shareholder payout of Rs 97.74 crore, including dividends and buybacks. The interim dividend for Q2 FY25 alone amounts to Rs 2 per share, translating to Rs 25.56 crore.  

    Key Financial Highlights:  

    – Q2 FY25 Revenue: Rs 80.6 crore, up 32 per cent year-over-year  

    – Operational EBITDA: Rs 59.5 crore, a 19 per cent increase from Q2 FY24  

    – PAT: Rs 48.2 crore, reflecting a 21 per cent growth year-over-year  

    – H1 FY25 Revenue: Rs 154.5 crore, up 36 per cent year-over-year  

    – H1 FY25 PAT: Rs 91.7 crore, an increase of 37 per cent