Q2 results impact: BHEL, PB Fintech rise up to 7% on strong earnings growth, Ixigo hits 20% lower circuit

BHEL, PB Fintech rise up to 3% on strong earnings growth.

Shares of Bharat Heavy Electricals Ltd (BHEL) and PB Fintech rose up to 3 percent on Thursday following strong September-quarter results, while travel-tech platform Ixigo hit the 20 percent lower circuit after reporting a loss for the quarter.

BHEL shares gained nearly 4 percent to Rs 255.34 apiece on the NSE after the state-owned engineering firm posted a more than three-fold rise in consolidated net profit to Rs 374.89 crore for the quarter ended September 30, 2024. The company had reported a net profit of Rs 106.15 crore in the year-ago period, according to a regulatory filing.

Total income rose to Rs 7,686.41 crore during the quarter from Rs 6,695.37 crore a year earlier.

Brokerage firm CLSA said the resurgence of fossil orders was a positive for BHEL, though it flagged concerns over the quality of growth. Investec noted that the company’s Q2 EBITDA came in above consensus estimates due to provision reversals, but added that meeting timelines could remain a challenge amid supply chain constraints.

As per data compiled by LSEG, BHEL’s stock is rated “Hold” on average by 20 analysts, with a median price target of Rs 245.

Shares of PB Fintech, the parent company of Policybazaar, rose 7 percent to Rs 1,838.9 on the NSE after the company reported a more than two-fold increase in quarterly profit, supported by strong growth in its insurance broking business.

Revenue from operations rose 38.2 percent year-on-year in the September quarter, while the insurance segment recorded a 43 percent rise in revenue. The company said it remains optimistic about ongoing negotiations with insurers over changes in the distribution structure following the rollout of GST 2.0.

HSBC reaffirmed its “Buy” rating on the stock with a target price of Rs 2,250, citing a healthy medium-term outlook. Morgan Stanley said it awaits clarity on the impact of GST on revenue and profitability, estimating a potential decline in profit by 9 percent in FY26 and 5 percent in FY27.

The company added that its core credit business continued to face stress due to the Reserve Bank’s curbs on unsecured lending, with loan disbursals down 33 percent year-on-year.

According to LSEG data, analysts on average have a “Hold” rating on the stock, with a median price target of Rs 1,952.50.

Meanwhile, shares of Le Travenues Technology Ltd, which operates under the Ixigo brand, hit the 20 percent lower circuit after the company reported a consolidated loss of Rs 3.46 crore for the September quarter, compared to a net profit of Rs 130.85 crore a year earlier.

The company recorded a one-off employee stock option (ESOP) expense of Rs 26.7 crore during the quarter.

Revenue from operations rose 37 per cent year-on-year to Rs 282.7 crore from Rs 206.5 crore, driven by a 60 per cent rise in flight revenue to Rs 89.4 crore and a 64 per cent jump in bus revenue to Rs 65.4 crore. However, total expenses increased to Rs 290.4 crore from Rs 191.47 crore a year earlier.

“Despite Q2 facing some capacity headwinds, Ixigo continued its resilient momentum and grew faster than the overall market year-on-year across all business lines,” Group Co-CEO Rajnish Kumar and Group CEO Aloke Bajpai said in a joint statement.

They added that the recent fundraise would support the company’s plans to enhance its AI-first customer experience and expand into new categories and markets.

(Inputs from Reuters) 

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