Q2 Results 2024 Highlights: Max Fin reports 31.3% surge in total APE to Rs 2,170 crore

Max Financial has reported a significant increase in its financial performance for the second quarter, with Total Annual Premium Equivalent (APE) rising by 31.3% to Rs 2,170 crore, compared to Rs 1,653 crore in the same period last year.

The Value of New Business (VNB) also saw a healthy growth of 23.1%, reaching Rs 512 crore, up from Rs 416 crore year-on-year. However, the Value of New Business Margin declined to 23.6%, down from 25.2% a year ago.

In addition, New Business Premium increased by 24.5%, amounting to Rs 3,016 crore, compared to Rs 2,422 crore in the previous year. Retail APE experienced a rise of 26.3%, reaching Rs 2,161 crore, up from Rs 1,711 crore year-on-year.

Bajaj Finance delivered mixed results for the July-September quarter, yet management expressed confidence in margin recovery in the upcoming periods. During an analyst conference call, the company indicated that the cost of funds (CoF) has likely peaked, setting the stage for potential margin improvements.

“We anticipate that Net Interest Margins (NIMs) will stabilize at current levels, with a gradual transition towards our secured portfolio,” management stated. They also noted that lower default rates and recent underwriting measures have alleviated pressure on credit costs. Furthermore, a 25-basis-point repo rate cut could enhance margins by an additional 10-20 basis points.

The company plans to reinvest margin gains into new business lines, which currently contribute 2-3% of its Assets Under Management (AUM), while simultaneously focusing on driving operational efficiency.

Can Fin Homes has reported a net profit of Rs 211.5 crore for the second quarter, representing a substantial increase of 33.8% compared to Rs 158.1 crore in the same period last year.

Net Interest Income (NII) also rose by 7.3%, reaching Rs 339.8 crore, up from Rs 316.8 crore year-on-year. Additionally, the Gross Non-Performing Assets (NPA) ratio improved to 0.88%, down from 0.91% in the previous quarter, while the Net NPA ratio decreased to 0.47% from 0.49% quarter-on-quarter.

ICICI Prudential has reported a total Annualized Premium Equivalent (APE) of Rs 2,504 crore for the second quarter, reflecting a 21% year-on-year increase from Rs 2,062 crore.

The Value of New Business (VNB) also saw a slight rise of 1.5%, reaching Rs 586 crore compared to Rs 577 crore in the previous year. However, the VNB margin declined to 23%, down from 28% year-on-year.

For new business development, the company has set an ambitious target of achieving 15% growth, an increase from the current level of 6%. Furthermore, M&M Finance projects its Return on Assets (ROA) to decrease from 2.5% to a range of 1.8% to 2%.

The company aims to reduce its Gross Stage 3 assets from below 6% to under 4%.

In terms of profitability, M&M Finance has adjusted its Net Interest Margin (NIM) forecast from 7.5% to a range of 6.5% to 6.7%. Additionally, the company expects its growth rate to moderate, projecting an increase of 1.8 to 2 times its Assets Under Management (AUM), down from the previous target of doubling AUM.

Operationally, M&M Finance plans to keep its operating expenses below 2.6% of total assets, revising this target to a range of 2.6% to 2.7%.

Vijay Shekhar Sharma, Founder and Managing Director of Paytm, stated, “The Paytm wallet is managed by Paytm Payment Bank, and we will await clear guidance in that area first. There are significant opportunities for Paytm to grow; we are not aiming to be a mediocre player. In the future, we see a substantial opportunity in the UPI consumer market. Once we establish a strong customer base on our platform, we will have exceptional chances to cross-sell financial services and other related products.”

Vijay Shekhar Sharma, Founder and Managing Director of Paytm, emphasized the company's strategic shift towards a DLG-based model, stating, “We observed market practices and regulatory guidance, and as the industry matures, we've moved towards this approach. We waited until this month to assess our income levels. This is an emerging market practice, and we aim to align with it. We're confident this will lead to increased revenue without altering our profit projections. It's important to note that not every lender has requested this arrangement; it won't be a blanket approach applied to every loan."

Madhur Deora, President and Group CFO, added, “Our partners' appetite for conducting business under the DLG model is growing, and we're seeing strong demand for quality asset properties.”

Vijay Shekhar Sharma, Founder and Managing Director of Paytm, stated, "In just 10 months, we've reduced our manpower support costs by 60% thanks to Artificial Intelligence. AI is set to become the new standard, and as we continue to leverage it, we aim to enhance our profitability and cost efficiency. Our focus will be on identifying additional ways to reduce costs—not solely related to personnel, but also in operating expenses beyond just labor."

SBI General Insurance reported net profit at Rs 414 crore for H1 FY25 year-on-year. The company also achieved a 16.1% increase in gross written premium (GWP).

During the post-results conference call, Madhur Deora, President and Group CFO of Paytm, shared insights on the company's lending strategy. He stated, “We are not aggressively going towards secured loans. There are a few experiments ongoing in secured lending, but at this point, it is not our priority. We see a big opportunity in merchant and personal loans, with a current focus on adding more partners."

Regarding new lending partnerships, Deora noted, “We have added new partners and have a few more in the pipeline, but it is relatively small right now. We need to create more supply on the platform, as our partners remain cautious. We are navigating through a very cautious phase.”

Bajaj Finance on October 22 reported 13% increase in net profit at Rs 4,000 crore for the quarter ended September 30, 2024. It reported net profit of Rs 3,551 crore in the year-ago period.

On October 22, the NBFC's shares fell 2% to Rs 6,645.75 apiece.

Blinkit, Zomato's quick commerce arm, more than doubled its revenue to Rs 1,156 crore in Q2FY25, up from Rs 505 crore in Q2FY24, according to stock exchange filings. The company's adjusted EBITDA improved to a negative Rs 8 crore from a negative Rs 125 crore in the same period last year. Gross order value (GOV) surged to Rs 6,132 crore, up from Rs 2,760 crore last year, nearing an annualised GOV of Rs 24,528 crore ($3 billion). Blinkit continues to lead the market, while Swiggy Instamart's latest numbers remain undisclosed.

Union Bank of India’s net interest margin (NIM) dropped by 11 basis points (bps) in the second quarter, following the implementation of new Reserve Bank of India (RBI) guidelines on penal interest.

According to the bank’s statement, under the revised RBI guidelines, penalties for non-compliance are now considered “penal charges” and will be categorized under non-interest income, rather than interest income. This change led to a reduction of 11 bps in NIM for Q2FY25 and 6 bps for H1FY25.

The RBI guidelines, effective from July 1, stipulate that banks must not levy penalties in the form of “penal interest” on advances but instead treat them as separate penal charges. Consequently, such penalties can no longer be counted as revenue.

SBI Life's impressive performance in Annualised Premium Equivalent (APE) is expected to enhance its Value of New Business (VNB)—a key indicator of the profitability of newly sold policies—by 2% year-on-year, increasing from Rs 1,490 crore in Q2FY24 to Rs 1,524 crore in Q2FY25.

Analysts predict consistent growth in SBI Life's new business premium income for the quarter ending September. According to Axis Securities, a 43% sequential rise and a slight 0.1% year-on-year increase in New Business Premium (NBP) are anticipated for Q2FY25. NBP reflects the premium income generated from newly issued policies during a specified period.

M&M Financial Services has reported a substantial increase in its net profit for the second quarter, rising by 57.1% to Rs 369.5 crore, compared to Rs 235.2 crore in the same period last year.

The company also saw a 19.3% growth in net interest income (NII), which reached Rs 1,963.2 crore, up from Rs 1,645.5 crore year-on-year.

Despite the positive financial performance, the provision coverage ratio (PCR) slightly declined to 59.5% from 59.8% in the previous quarter.

M&M Financial Services has announced its financial results for the second quarter, reporting a net profit of Rs 369.5 crore, alongside a revenue of Rs 3,897.5 crore.

However, the company also noted an increase in its non-performing assets (NPA), which rose to 3.83% from 3.56% in the previous quarter. Additionally, the net NPA increased to 1.59%, compared to 1.46% in the prior quarter.

Persistent Systems has announced its Q2 results, showing a 5.3% increase in dollar revenue, reaching $345.5 million, up from $328.2 million in the previous quarter. The company also reported a 5.1% growth in constant currency revenue for the same period.

In Indian rupee terms, revenue rose by 5.8%, totaling Rs 2,897 crore compared to Rs 2,737 crore in the previous quarter. Earnings Before Interest and Taxes (EBIT) also experienced a 5.8% increase, reaching Rs 406.2 crore, up from Rs 384 crore in the prior quarter. The EBIT margin remained flat at 14%,

Zomato has announced a net profit of Rs 176 crore for Q2, a significant increase compared to Rs 36 crore in the same period last year. The company’s revenue surged by 68.5%, reaching Rs 4,799 crore, up from RS 2,848 crore year-on-year.

Zomato also reported an EBITDA profit of Rs 226 crore, a turnaround from an EBITDA loss of Rs 47 crore in the previous year. The EBITDA margin stood at 4.7%

SRF's board has approved an investment of Rs 1,100 crore to enhance capacity at its Dahej facility, aimed at establishing new production capabilities for fourth-generation refrigerants. The financing for this capacity addition will be supported through internal accruals and borrowings.

SRF reported a 13.4% year-on-year decrease in EBITDA for Q2, with earnings totaling Rs 538 crore, down from Rs 621 crore in the same period last year. The EBITDA margin also contracted, falling to 15.7% compared to 19.7% a year ago

SRF has announced a 33.2% year-on-year decrease in its net profit for Q2, reporting earnings of Rs 201 crore, down from Rs 301 crore in the same period last year.

However, the company experienced revenue growth, with a 7.8% increase, at Rs 3,424 crore compared to Rs 3,177 crore in the previous year.

According to a Moneycontrol poll of estimates from five brokerages, SBI Life is expected to report a 6% year-on-year rise in Annualised Premium Equivalent (APE), reaching Rs 5,553 crore in Q2FY25, up from Rs 5,230 crore in the same period last year. APE, which measures the annualised value of premiums from various policies, is a key indicator of the company’s growth trajectory.

SBI Life Insurance Company is scheduled to release its results for the July-September quarter (Q2FY25) on October 23, i.e. tomorrow. Analysts are optimistic, predicting double-digit year-on-year profit growth for the quarter, driven by robust increases in both renewal and new business premiums.

Adani Energy Solutions has posted impressive Q2 results, reporting a consolidated net profit of Rs 675 crore, up from Rs 276 crore in the same period last year, marking a substantial 144% increase.

The company's consolidated revenue surged by 68%, reaching Rs 6,184 crore compared to Rs 3,674 crore a year ago. Additionally, consolidated EBITDA rose by 19% to Rs 1,787 crore, up from Rs 1,505 crore in the previous year.

However, the consolidated margin contracted to 28.9%, down from 41% in the same period last year. The company also reported an increase in other income, which rose to Rs 176 crore from Rs 93 crore a year ago

Goodyear India has announced a significant 58.5% decline in its second-quarter profit, affected by rising rubber prices and decreased demand. The standalone net profit for the U.S.-based tyre maker’s Indian unit fell to Rs 157.4 million ($1.8 million) for the three months ending September 30, down from Rs 379.4 million in the same period last year.

Revenue from operations also saw a slight decrease of 1.1%, totalling Rs 6.82 billion for the company, which supplies tires to major automakers like BMW and Toyota.

Motilal Oswal analysts expect Bajaj Finance to report a 30% year-on-year growth in assets under management (AUM) and a 7% quarter-on-quarter rise for the September-ended quarter. Axis Securities echoed this view, projecting a 6% sequential AUM growth for Q2 FY25.

India's leading non-bank lender, Bajaj Finance, is poised to release its Q2 FY25 earnings report on October 22. Analysts anticipate a strong performance, driven by the company’s stake sale in Bajaj Housing Finance and robust loan growth.

According to a Moneycontrol poll of six brokerages, Bajaj Finance’s net interest income (NII) is projected to grow 32% year-on-year, reaching Rs 9,557 crore in Q2 FY25, up from Rs 7,197 crore in the same period last year. Profit is also expected to surge 33% YoY to Rs 4,464 crore, compared to Rs 3,551 crore in Q2 FY24.

Kajaria Ceramics reported an 11.6% year-on-year decline in EBITDA for Q2, coming in at Rs 158.9 crore compared to Rs 179.8 crore in the same period last year. The company’s EBITDA margin contracted to 13.5%, down from 16% a year ago.

Kajaria Ceramics has reported a 22.8% year-on-year drop in net profit for Q2, with earnings falling to Rs 85.5 crore, down from Rs 110.8 crore in the same period last year. Despite the decline in profit, the company’s revenue saw a 5.1% growth, reaching Rs 1,179.3 crore compared to Rs 1,121.6 crore in the year-ago period.

Jubilant Ingrevia has reported a 6% year-on-year increase in EBITDA for Q2, reaching Rs 124.6 crore, up from Rs 117.6 crore in the same period last year. The company's EBITDA margin improved slightly to 11.9%, compared to 11.5% a year ago

Jubilant Ingrevia has reported a 12.4% year-on-year increase in net profit for Q2, reaching Rs 59 crore, up from Rs 52.5 crore in the same period last year. The company’s revenue saw a modest rise of 2.5%, coming in at Rs 1,045.2 crore compared to Rs 1,019.9 crore in the previous year.

Aditya Birla Real Estate has posted a significant recovery in its Q2 financials, reporting a net profit of Rs 2.8 crore compared to a loss of Rs 33 crore in the same period last year.

The company saw a robust 31% rise in revenue, reaching Rs 1,128 crore, up from RS 864 crore in the year-ago period. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 60%, coming in at Rs 88 crore, up from Rs 55 crore.

The EBITDA margin also improved to 7.8%, compared to 6.4% last year

Net Profit down 15% YoY at Rs 206 crore

Revenue down 1.5% YoY at Rs 2,273 crore

EBITDA down 10.4% YoY at Rs 319.2 crore

Margin at 14% vs 15.4%

ICICI Securities net profit jumps 25% to Rs 528 crore.

ICICI Securities on October 22 reported a 25 percent jump in net profit at Rs 528 crore in the first quarter of current fiscal, over Rs 423.83 crore in the same period of the previous financial year.

In the first quarter of F25, the firm had posted a net profit of Rs 525.86 crore, according to the exchange filing.

Total income during the quarter grew almost 37 percent to Rs 1,706.41 crore from Rs 1,248.61 crore in the year-ago period.

Net Profit up 21.5% at Rs 619.6 crore YoY

Revenue up 24% at Rs 4,805 crore YoY

EBITDA up 30.6% at Rs 1,150 crore YoY

Margin at 24% vs 22.8% (YoY)

Fintech firm Paytm Ltd on October 22 reported net profit of Rs 930 crore for the quarter ended September 30, 2024.

At 10:50 am on October 22, Paytm's shares were trading nearly 5% lower at Rs 691 apiece.

Ultratech Cement stock has garnered mixed calls from analysts after the company reported a marginal miss on standalone operational performance for Q2FY25 owing to lower-than-expected volume growth and higher other expenses.

While subdued demand growth and a weak pricing environment keep brokerage cautious, infra investments gathering pace, and sustained momentum in urban housing are expected to be the growth drivers for H2 along with cost efficiency tailwinds. Read more

Domestic telecom gear make HFCL on Monday posted 4.5 per cent year-on-year rise in its consolidated net profit for second quarter ended September 2024 (Q2FY25) to Rs 73 crore.

The Q2 revenue, however, slipped 1.61 per cent year-on-year to about Rs 1,094 crore.

In a statement, HFCL Managing Director Mahendra Nahata noted that the company delivered steady performance despite the ongoing softness in demand for Optic Fiber Cables globally.

Mahindra Logistics Ltd on Monday reported 54 per cent decline in standalone Profit After Tax (PAT) at Rs 8.5 crore for September quarter FY25.

The company had posted a PAT of Rs 18.6 crore in the second quarter of FY24, a statement said.

Revenue during the quarter under review, however, increased 9 per cent to Rs 1,236 crore from Rs 1,136 crore in July-September FY24.

State-owned Union Bank of India on Monday logged a 34 per cent growth in its net profit at Rs 4,720 crore for the second quarter ended September 2024.

The Mumbai-based lender had earned a net profit of Rs 3,511 crore in the same quarter a year ago.

The total income increased to Rs 32,036 crore during the quarter under review against Rs 28,282 crore in the same period last year, Union Bank of India said in a regulatory filing.

ICICI Prudential Life Insurance, Adani Energy Solutions, Varun Beverages, Mahindra & Mahindra Financial, Indus Towers, Coforge and SRF are among the major firms set to declare their September quarter earnings today.

Bajaj Finance, Adani Green, Zomato and One97 Communications (Paytm) are some of the big names in the list of around 67 companies set to declare their earnings for the second quarter of the fiscal year 2024-25.