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Tag: profitability

  • 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.

     

  • 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.

  • Paramount Communications soars with 46.1 per cent growth YoY in Q2 FY25

    Paramount Communications soars with 46.1 per cent growth YoY in Q2 FY25

    Mumbai: In a world that prides itself on wireless connectivity, the humble cable remains indispensable, quietly powering our digital lives and delivering seamless connections. As another quarter dawns, Paramount Communications Ltd., a stalwart in India’s cables and pipes industry, emerges with a balance sheet that shines just as brightly as its sturdy wires. The company’s Q2 FY25 financial results reveal a story of resilience and growth, with gains in revenue and profitability that underscore its strategic prowess and market strength. Against the backdrop of growing demand in the telecommunications, energy, and infrastructure sectors, Paramount’s latest performance showcases the results of steady expansion and commitment to value creation.

    For the quarter ending 30 September 2024, Paramount posted a revenue from operations of Rs 35,210.10 lakh, a notable 28.3 per cent increase from Rs 27,452.30 lakh in Q2 FY24. In the first half of FY25, revenues totaled Rs 67,694.55 lakh, representing a remarkable 46.1 per cent growth year-over-year (YoY). This robust expansion reflects heightened demand for Paramount’s products, particularly in the expanding cable sector, which contributed significantly to the earnings momentum. Cables remain Paramount’s largest revenue driver, contributing Rs 66,541.68 lakh over the half-year period, up from Rs 46,082.64 lakh during the same timeframe last year.

    The company’s pipes segment, though smaller in scale, also exhibited a compelling growth rate. Revenue here reached Rs 1,260.98 lakh in H1 FY25, a nearly six-fold increase over the Rs 215.31 lakh reported in H1 FY24. This sector growth is driven by Paramount’s increased penetration into infrastructure and irrigation projects, which are anticipated to remain robust revenue contributors for the foreseeable future.

    Paramount’s profitability surged alongside its revenue growth. In Q2 FY25, the company’s profit before tax (PBT) reached Rs 2,911.32 lakh, up from Rs 1,950.12 lakh in Q2 FY24, marking a 49.3 per cent increase. Paramount’s net profit for Q2 FY25 also rose by an impressive 40.8 per cent, closing at Rs 2,033.11 lakh compared to Rs 1,948.92 lakh in the previous fiscal year.

    Additionally, Paramount’s margin enhancements reflect the company’s ongoing efficiency measures and prudent cost management. The cost of materials consumed in Q2 FY25, though rising due to increased production volumes, remained well-managed, totaling Rs 28,845.71 lakh. Meanwhile, operating expenses such as finance costs were reduced to Rs 170.20 lakh, showcasing an ability to maintain financial discipline amidst scaling operations.

    A closer look at Paramount’s balance sheet shows a robust position with total assets reaching Rs 83,041.21 lakh as of 30 September 2024, up from Rs 68,540.52 lakh in the previous year—a 21.2 per cent increase. Key non-current assets like property and equipment saw a strong increase, with capital investment in plant and equipment growing to Rs 16,268.12 lakh, reflecting Paramount’s commitment to expanding its production capabilities.

    Equity shares also increased from Rs 4,773.70 lakh in September 2023 to Rs 6,098.70 lakh in September 2024, largely attributed to strategic equity issuance and the conversion of equity share warrants. Notably, the company’s equity base expanded by 54.5 per cent over the past year, strengthening Paramount’s long-term financial foundation. Total borrowings, on the other hand, were reduced significantly, reflecting a strategic focus on improving the capital structure.

    Paramount’s cash flow statement underscores the company’s operational resilience. Cash from operating activities (CFO) reached Rs 5,687.33 lakh in H1 FY25, a substantial turnaround from the previous year’s cash outflow of Rs 3,491.53 lakh. The improvement is mainly due to better working capital management, with receivables turnover reducing from prior levels.

    Further investments in the business, including a purchase of property and equipment totaling Rs 2,688.19 lakh, highlight Paramount’s commitment to enhancing manufacturing capabilities. Despite these investments, Paramount’s financial strategy enabled it to maintain positive cash flow, signalling preparedness for future growth.

    The results affirm Paramount Communications Ltd.’s strategic growth trajectory, supported by a balanced approach to expansion and operational efficiency. As the cables and pipes markets continue to grow, the company appears well-positioned to leverage its improved capacity and sectoral demand. Paramount’s focus on capturing rising demand across telecommunications, energy, and infrastructure sectors has paid off, with impressive gains in both top-line and bottom-line figures. Looking forward, the company’s expanded production capabilities and reduced debt load place it favourably for sustained growth in these booming sectors.

  • MSLGROUP announces two senior hires

    MSLGROUP announces two senior hires

    MUMBAI: MSLGROUP, Publicis Groupe’s strategic communications and engagement consultancy, has appointed two industry veterans to its fold – Amit Misra comes on board as executive vice president & director – public affairs in Delhi and Rekha Rao, as general manager in Mumbai of 20:20 MSL.

     

    Amit Misra will be the overall market leader for MSLGROUP for the Delhi market & the practice leader for the public affairs practice across India for MSLGROUP. In addition, he will also strategically collaborate with 20:20 MSL in Delhi for business development, PA, key client relationships and talent development.

     

    In her role, Rekha Rao will report to Ian Sequeira, senior VP at 20:20 MSL and her key responsibilities will include operational performance, growth, profitability, talent management and client engagement.  

     

    On the appointments, MSLGROUP CEO Jaideep Shergill said: “We warmly welcome Amit and Rekha to our family and eagerly look forward to their contribution in helping us grow in both reputation and expertise. Each of them comes with capabilities necessary to provide the more value-adding, strategic and content centric offerings that our clients increasingly are looking for in India. MSLGROUP is a people centric agency. We invest in our talent by giving them exceptional opportunities to work on exciting client engagements, attend world class trainings and pursue an international career. We see that this is appreciated: never before have had so many of the industry’s top talent wanted to join MSLGROUP, where Misra and Rao are very notable examples. By appointing Amit Misra and Rekha Rao in their new roles, we are strengthening MSLGROUP’s core functions, which will further add impetus to our continuing growth story.”

     

    With these two hires, MSLGROUP wants to forge ahead.

  • At Zee, we dont believe in growth without profitability

    At Zee, we dont believe in growth without profitability

    Mipcom is the biggest event for all those in the broadcast industry. But this years Mipcom was even more special. For the first time in the history of Mipcom, an Indian addressed the gathering as a key note speaker. Present today was Zeel MD and CEO Puneet Goenka, who elaborated on Zee, the changing Indian broadcast industry and the role of digitisation and the growth of new media.

    Digitisation is one big opportunity that everyone is looking at. It will also impact the advertising market positively. If you look at the advertising market; the growth in the past five years has been roughly nine per cent and television has been growing at 15 to 16 per cent. The advertising industry will see a great boost whether it is captured on traditional media or new media.

    Zee Entertainment Television was started in 1992 with just two hours of programming scheduled at that point of time; today we have 34 channels in India, 29 on a global basis.
    Our journey outside India started in 1995 so the international business is now 18 years old, but truly, the international business started only a few years back. In the first 15 years, we concentrated on the Indian diaspora.

    In the international market, to start with, we picked up the Middle East, Russia and Malaysia, where our content is re-purposed and re-formatted to suit the local audience. Our goal is to reach one billion audiences by 2020, thereby taking Zee to the top ten channels. These markets have a lot of connection with India, especially on the Bollywood side.

    Opportunities ahead of digitisation in India

    In the traditional analogue market, there was huge piracy, approximately 70 per cent. So a broadcaster like Zee did not get its fair share of valuation. This will change with digitisation.

    The second opportunity is that India is still the cheapest content market. The ARPUs that the consumers pay is $ 3 per month for almost 200 channels. I feel this number will go up to $ 10-12 with digitisation. So the opportunity is two-fold.

    Digitisation is one big opportunity that everyone is looking at. It will also impact the advertising market positively. If you look at the advertising market; the growth in the past five years has been roughly nine per cent and television has been growing at 15 to 16 per cent. The advertising industry will see a great boost whether it is captured on traditional media or new media.

    Another development taking shape in India is the new measuring body called Broadcast Audience Research Council (BARC). The advertisers, broadcasters and agencies have come together to form this measurement system. Currently, the sample size in India is less than 10,000 homes, which in the next five years will go up to 100,000 sample households. This again will prove beneficial for advertisers who can find the right consumers.

    The profit mantra…

    Revenue growth is first and profitability comes in later. But at Zee, we have always followed the mantra that growth without profitability is not good. So according to us, any investment on a sustained basis that does not give a 20-25 per cent return on the capital invested is a bad investment. So when the Indian broadcast industry operates at an average of seven to eight per cent, Zee operates at a healthy 25 per cent plus.

    Viewer segmentation…

    Going forward, both digitisation and the need of advertisers will lead to further segmentation. Also, fragmentation is the order of the day. We are continually developing more content and more products to further segment the audience and grow and reach the billion mark.

    As long as there are consumers at the end of it; yes, we will move to the second screen. In India, the concept of second screen is at an early stage. It is largely the same content that is being reformatted. For example a show which is 40 minutes on traditional media, is shortened to 15 minutes for the small screen or second screen. There have been some investments specifically for this content, largely to get the youth. But, this is still at an early stage. 

    Content creation…

    We have a strong internal team working towards ideation and content creation for shows. India is traditionally known for importing formats, Zee was the first one to develop local formats in India. A lot of credit goes to the in-house team, but the credit also goes to the execution department, because investing in formats is not easy, it is expensive and the returns come in only after three or four years. So we have to continuously innovate in terms of our content and formats. The taste changes and so we have to adapt to the changing needs.

    Criteria for choosing international partners…

    The first thing we see is if my partner shares the same passion and vision. The world today is moving towards more co-operation than competition. We are actually collaborating with our competitors to see how we can mutually create content. So we have partnered with our key competitors in India. So as long as the industry grows, a company like Zee will grow.

    Indian talent pool…

    India has a dearth of talent in this industry and this is because there are no specialised schools to train people. We at Zee recruit fresh talent every year and put them through rigorous training through institutes that we have partnered with. We have created an environment where people are given the right to decide and build a culture of entrepreneurship. And therefore they take ownership which leads to positive results. I have been talking to schools as well to see if a programme can be created to develop this pool.

    Attrition rate in the Indian broadcast industry…

    Being a traded organisation, we can give equity stock options to people and that has worked for us. Currently, almost three per cent of the company is owned by the people and this combined with the environment that we create helps us keep the attrition rate as low as possible. In India, people are still moving within the Indian broadcast industry. We are not really seeing too many attritions happening from Indian companies to international markets, but the day isnt far.

    Moving towards second screen…

    As long as there are consumers at the end of it; yes, we will move to the second screen. In India, the concept of second screen is at an early stage. It is largely the same content that is being reformatted. For example a show which is 40 minutes on traditional media, is shortened to 15 minutes for the small screen or second screen. There have been some investments specifically for this content, largely to get the youth. But, this is still at an early stage. As a content creator, we will catch up soon. We were the first in the country to launch a Video on Demand service on mobile called Ditto TV, under a subscription model. Today we have 200,000 subscribers for it. I think the biggest hindrance is lack of a good broadband service. As the infrastructure improves, in the next three to five years, we will grow in this segment as well.

  • Kalyan Jewellers Declared Retail Chain of the Year at the First India Bullion & Jewellery Awards

    Kalyan Jewellers Declared Retail Chain of the Year at the First India Bullion & Jewellery Awards

    MUMBAI: Kalyan Jewellers, one of India’s leading jewellery retail companies, has won top honours at the 1st India Bullion and Jewellery (IBJ) Awards. Kalyan Jewellers was named the Retail Chain of the Year and they had the best advertising campaign of the Year. The IBJ awards seek to recognise companies that have pushed the boundaries of excellence, rising above the competition and demonstrating outstanding performance.

    Speaking on the occasion Mr. T.S. Kalyanaraman, Managing Director, Kalyan Jewellers said; “We are delighted to receive these prestigious awards and I thank The Bombay Bullion Association Ltd for this honour. The awards recognise Kalyan Jewelers commitment to business innovation, and globally benchmarked quality of services. It is this commitment that will sustain our next stage of growth as we go across the length and breadth of the country and globally. Kalyan Jewellers today enjoy a strong association and trust in the minds of its priced clientele, the industry and trade.”

    Kalyan Jewellers was chosen through rigorous analysis of players in the retail segment by the analyst teams at The Bombay Bullion Association Ltd. The teams conducted detailed research and assessment on market performance of the qualifying companies. The evaluation criteria included key achievements, measurement of revenue and revenue growth, technological innovation, regional vision, strategy and profitability. Best Jewellery Advertisement Campaign of the year for its brand campaign ‘Vishwasam Athalle Ellam