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Tag: Q2 FY25 results

  • 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.

  • Infomedia Press faces turbulence as total expenses rise to Rs 73.39 lakh

    Infomedia Press faces turbulence as total expenses rise to Rs 73.39 lakh

    Mumbai: Even a lifeless ship weighs heavy on the ocean—Infomedia Press Limited, once a towering lighthouse in India’s publishing industry, now drifts aimlessly in turbulent financial seas.

    For the half-year ending 30 September 2024, losses have swelled to Rs 193.90 lakh, deepening the shadows over its future. Despite unwavering support from its anchor, Network18 Media & Investments Limited, the company remains mired in uncertainty, its sails tattered and hope for revival fading on the horizon. Stakeholders, like distant watchers on a stormy shore, ponder whether this vessel can ever find its course again.  

    Infomedia’s Q2 FY25 results reveal a grim narrative, underscored by a loss of Rs 87.81 lakh for the quarter. This marks a year-on-year escalation from Rs 90.83 lakh in Q2 FY24, compounding the company’s cumulative losses to Rs 10,805.01 lakh. Operating income remained at zero, reflecting its discontinued business operations, while finance costs surged to Rs 73.31 lakh for the quarter, up 3.86 per cent from Rs 70.58 lakh in Q2 FY24.  

    Other financial metrics further reflect this decline:  

    – Total Expenses: Increased to Rs 73.39 lakh from Rs 70.66 lakh in the corresponding quarter last year.  

    – Earnings Per Share (EPS): Fell from Rs (0.18) in Q2 FY24 to Rs (0.21) in Q2 FY25, reflecting diminished shareholder value.  

    The company’s equity position continues to deteriorate, with a negative net worth of Rs 5,639.70 lakh as of September 2024, widening from Rs 5,448.47 lakh at the close of March 2024. Total assets marginally increased to Rs 961.45 lakh, driven by slight improvements in current assets. However, non-current liabilities, primarily borrowings, escalated to Rs 6,543.77 lakh, signaling greater reliance on external funding.  

    Operating activities generated a net cash outflow of Rs 82.11 lakh in H1 FY25, reflecting weaker operational performance. Minor relief came from financing activities, which infused Rs 81.75 lakh, primarily through increased borrowings. Yet, the company’s cash reserves remain fragile at Rs 2.28 lakh.  

    Infomedia’s plight is rooted in discontinued operations, which have eroded its revenue streams and strained its ability to cover mounting liabilities. Despite assurances of financial support from Network18, the absence of a concrete revival plan exacerbates uncertainty. The management’s mention of exploring new business lines provides a glimmer of hope but lacks tangible direction.  

  • 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

  • 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.

  • 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.

  • JSW Energy reports resilient Q2 FY25 results amid economic challenges

    JSW Energy reports resilient Q2 FY25 results amid economic challenges

    Mumbai: In a year marked by economic challenges and shifting global energy priorities, JSW Energy continues its steady performance, navigating volatility with a balanced mix of innovation, sustainability, and expansion. The company’s Q2 FY25 results underscore a nuanced position: while overall revenue reflects a modest decline, strategic initiatives in renewable energy and infrastructure lay the groundwork for long-term growth.

    In Q2 FY25, JSW Energy’s revenue from operations stood at Rs 3,237.66 crore, a slight decrease from the Rs 3,259.42 crore recorded during the same quarter last year. Although consolidated EBITDA dipped by 5 per cent YoY to Rs 1,907 crore, underlying EBITDA grew by 4 per cent, driven by increased energy generation across its thermal, wind, and hydro assets. Net Profit After Tax (PAT) grew to Rs 853 crore, marking a small but steady YoY increase, underpinned by an uptick in operational efficiency and an optimised debt position, with a net debt-to-equity ratio of 0.9x and net debt-to-EBITDA (excluding CWIP) at 2.2x.

    The company’s energy generation surged by 14 per cent YoY to 9.8 billion units (BUs), a growth attributed to the commissioning of 204 MW in wind projects and enhanced generation from both its thermal and hydroelectric assets. Total renewable energy (RE) generation rose by 14 per cent, hitting 5 BUs. Notably, wind generation surged by 37 per cent YoY, while hydro saw a 5 per cent increase. Thermal energy, despite broader industry challenges, remained resilient, contributing an impressive 4.8 BUs—an increase of 14 per cent YoY.

    JSW Energy’s commitment to environmental and social governance (ESG) is also noteworthy. The company received an ‘A’ rating from MSCI for its ESG practices and achieved a leadership score of “A-” for climate-related transparency from CDP. In addition, the company secured an all-time high score of 77/100 in S&P’s Global DJSI-ESG rating, underscoring its dedication to ethical and sustainable practices within the energy sector.

    As JSW Energy transitions toward a low-carbon energy future, its strategic focus remains steadfast on renewable energy expansion. The company’s cumulative RE generation capacity now stands at 19.2 GW, supported by significant new PPA signings for RE projects totaling 3.8 GW in Q2 FY25. Key projects include the nearly commissioned 454 MW SECI X Wind Project and new infrastructure projects in green hydrogen and battery energy storage. By March 2025, a 3,800 TPA hydrogen plant is anticipated to be operational, supplementing JSW’s green hydrogen agreements with JSW Steel, while a 1.0 GWh BESS project is slated for completion by June 2025.

    JSW Energy’s Q2 FY25 results present a complex yet promising outlook. Amid immediate financial challenges, the company’s strategic alignment with India’s renewable energy goals and commitment to ESG underscore a forward-thinking approach. With substantial growth in renewable capacity and promising new ventures, JSW Energy is positioning itself not only as a leader in India’s energy transition but as a globally responsible energy player.

  • Colgate-Palmolive Q2 FY25 delivers record revenue, marks best quarter yet

    Colgate-Palmolive Q2 FY25 delivers record revenue, marks best quarter yet

    Mumbai: The toothpaste your dentist swears by in every ad has now cemented its dominance, not just in recommendations but in hard numbers. Colgate-Palmolive (India) Limited has smashed expectations in Q2 FY25, posting its strongest quarter yet with an impressive 10 per cent increase in net sales, making it the company’s best-performing quarter to date.

    Announced on 24 October 2024, the unaudited financial results highlight the continued strength of Colgate’s oral care portfolio amidst a challenging market landscape. With revenues climbing to Rs 1,609.2 crore compared to Rs 1,462.4 crore in the same quarter last year, Colgate’s ability to navigate economic headwinds while expanding its consumer base has been commendable.

    Under the leadership of MD & CEO, Prabha Narasimhan, Colgate’s strategy to reinforce its core product offerings—particularly in toothpaste—has paid off handsomely. The toothpaste segment posted a high single-digit volume growth, driven by trusted brands such as Colgate Maxfresh and Colgate Strong Teeth. Colgate’s toothbrush category also saw double-digit growth, reflecting a rising trend towards premiumisation in the oral care market.

    Even with an increase in advertising expenditure by 17.8 per cent year-on-year, which was used to boost brand visibility and market reach, the company’s Net Profit After Tax (NPAT) rose by a robust 16.2 per cent, reaching Rs 395.1 crore, up from Rs 340.1 crore in Q2 FY24. This profitability boost was further supported by a one-time credit from interest on income tax refunds received during the quarter.

    Narasimhan attributed the success to a mix of consistent product innovation and consumer engagement. “This was a big innovation quarter with the launch of Colgate Visible White Purple, a product that uses colour theory and builds on our growing whitening business. Early response has been excellent. In addition, we aired new communication on our flagship global offering – Colgate Total. With its patented Dual Zinc and Arginine Technology, Colgate Total offers the best everyday protection and is the cornerstone of our premiumisation strategy. Colgate Strong Teeth saw new advertising, built on the very relevant insight for today of increased snacking leading to increased loss of calcium and Colgate Strong Teeth with its arginine + calcium boost builds back this lost calcium” she said.

    Innovation has been the cornerstone of Colgate’s growth strategy. Besides product advancements, Colgate continued its community outreach with the Bright Smiles, Bright Futures® program, extending its reach through partnerships with the governments of Uttar Pradesh and Goa. The program now aims to impact the oral health habits of over two crore children in Uttar Pradesh and two lakh children in Goa, solidifying Colgate’s commitment to creating a healthier future for India.

    Additionally, Colgate has kept sustainability at the heart of its operations. As part of its broader corporate social responsibility initiatives, the company has made strides in reducing plastic waste and promoting recycling in its product packaging, enhancing both its environmental impact and consumer goodwill.

    In another positive move, Colgate’s board has declared a first interim dividend of Rs 24 per equity share for FY25, with a total payout of Rs 653 crore to be distributed to shareholders. This signals Colgate’s strong cash flow position and its continued focus on delivering shareholder value.

    Despite Colgate’s current success, Narasimhan remained cautious about future challenges, particularly those related to economic conditions and inflation. “We expect continued difficult market conditions but remain committed to leverage our very strong P&L which allows us to continue to invest behind superior products and advertising while we maintain our focus on ensuring better oral health for everyone in India,” she noted.

    Colgate’s Q2 FY25 results reflect a balance of innovation, aggressive market strategies, and consumer-centric growth. With its premiumisation initiatives and strong oral care products, the company is well-positioned to maintain its market leadership in India’s personal care sector. Investors will be keenly watching how the company manages the upcoming quarters, especially amid market uncertainties.

  • 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.