Q2 results highlights: Amara Raja net profit rises 6.6% to Rs 241 crore, firm declares Rs 5.3 dividend

Amara Raja has released its results for the quarter ending in September 2024. The company reported that its profit for the second quarter of fiscal year 2025 increased to Rs 240.7 crore, up from Rs 226.4 crore in the same quarter last year, marking a growth of 6.3%. The company's revenue for the September quarter rose year-on-year from Rs 2,811.1 crore to Rs 3,135.8 crore.

Sundaram Finance reported a 7% decline in Q2 FY25 net profit, totaling Rs 340.09 crore, down from Rs 366.38 crore last year. Despite this, the company achieved record disbursements of Rs 13,768 crore in H1 FY25, marking a 3% increase year-on-year, and saw a 20% rise in assets under management (AUM) to Rs 48,058 crore. Operational profit rose by 23% due to strong business momentum, but net profit for the half-year remained flat at Rs 648 crore, impacted by a sharp decrease in dividend income from Rs 181 crore to Rs 43 crore.

Avik Roy, MD and CEO of Exide Industries, commented on the Q2 performance, stating, "In the first half of the year, we have delivered EBITDA and PBT margin of 11.4% and 9.0%, respectively. Efficient procurement coupled with cost optimisation initiatives has led to stability in operating performance, despite high commodity prices. For the near-term, business outlook is positive and commodity prices have started easing, which is expected to support profitability. At Exide, we are making multiple strides and are driving strategic initiatives to leverage synergies across our business verticals. We have undertaken organisational and business realignment which will enable us to strengthen our go-to-market strategy and to capitalise on the strong market demand. With our latest technologically advanced products and services and focus on cost efficiencies, we aspire to achieve strong growth in sales and profitability."

Net Profit Up 23.6 percent at Rs 45 Cr Vs Rs 36 Cr (YoY)

Revenue Up 1.8% at Rs 283.4 Cr Vs Rs 278.5 Cr (YoY)

EBITDA Down 12.3% at Rs38 Cr Vs Rs 43 Cr (YoY)

Margin At 13.4% Vs 15.5% (YoY)

Net Profit Down 22.2 percent at Rs 207 Cr Vs Rs 266 Cr (YoY)

Revenue Up 14.4 percent at Rs 4,924 Cr Vs Rs 4,305.6 Cr (YoY)

EBITDA Down 13 percent at Rs 489.6 Cr Vs Rs 562 Cr (YoY)

Margin At 10% Vs 13% (YoY)

Net profit up 3.8% at Rs298 cr vs Rs 287 cr (YoY)

Revenue up 4% at Rs 4,267.3 cr vs Rs 41,067 cr (YoY)

EBITDA down 0.2% at Rs 483 cr vs Rs 484 cr (YoY)

Margin at 11.3% vs 11.8% (YoY)

According to estimates, Nuvama predicts ABB India’s Q3 revenue at Rs 3,076.3 crore, net profit at Rs 425 crore, and an EBITDA margin of 17 percent, which is the most pessimistic.

Motilal Oswal Securities, on the other hand, provides the most optimistic estimate with a revenue of Rs 3,429.2 crore, a net profit of Rs 539.1 crore, and an EBITDA margin of 19.2 percent.

Net Profit Down 17.1 percent at Rs 64.3 Cr Vs Rs 77.6 Cr (YoY)

Revenue Up 8.8 percent at Rs 2,072 Cr Vs Rs 1,905 Cr (YoY)

EBITDA Up 10.4 percent At Rs 241 Cr Vs Rs 218.4 Cr (YoY)

Margin At 11.6 percent vs 11.5 percent(YoY)

Nomura analysts expect that the margin is likely to sustain above 18 percent led by an improved product mix supported by premiumization trend, higher capacity utilization, increasing localization and moderation in commodity prices.

Prabhudas Lilladher notes that the order inflows for the quarter are likely to be led by the Electrification, with continued traction in large orders from data centers.

The report adds that management commentary on base order inflow and data center demand will be key monitorable.

Most brokerages remain positive on the stock on the back of strong order flows. Analysts at Motilal Oswal Securities estimate ABB to be the key beneficiary of an improved addressable market for short-cycle orders from the private sector as well as transmission, railways, data centres, and PLI-led spending.

Analysts at Prabhudas Lilladher, which has an Accumulate call on the stock, note that ABB India’s prospects will continue to remain strong driven by increasing demand for its energy-efficient and premium products, its focus on high-growth industries and robust domestic order pipeline.

They estimate the company to report a revenue CAGR of around 22.6 percent over CY2023 and 26E.

According to estimates, Nuvama predicts ABB India's Q3 revenue at Rs 3,076.3 crore, net profit at Rs 425 crore, and an EBITDA margin of 17 percent, which is the most pessimistic.

Motilal Oswal Securities, on the other hand, provides the most optimistic estimate with a revenue of Rs 3,429.2 crore, a net profit of Rs 539.1 crore, and an EBITDA margin of 19.2 percent.

ABB India, which is expected to announce its Q3 results on November 4, is likely to report a 17 percent YoY increase in revenue to around Rs 3,243.1 crore on the back of order inflow, strong execution in Motion & Electrification segment and momentum in new areas.

Based on the average of five brokerages, net profit is expected to see a 10 percent YoY increase to Rs 483.3 crore,

The second quarter earnings season is in full swing, with over 40 companies set to announce their quarterly results for the July-September 2024 period today.

Exide Industries, Gland Pharma, KEC International, among others will also announce their Q2 results today.