Jindal Stainless Q2 FY25 PAT Falls 20% to Rs 609 Cr

Key Takeaways from Jindal Stainless Financial Performance:

• Jindal Stainless reported a net profit of Rs 609 crore for Q2 FY2024, down 20.24% from Rs 774.33 crore in the same quarter last year.
• Sales slightly decreased by 0.21% to Rs 9,777 crore in Q2 FY2024, compared to Rs 9,797 crore in the previous year’s quarter.
• The company’s EBITDA for the quarter fell to Rs 1,186 crore, marking a 3.65% decline from Rs 1,231 crore in the same period last year.

Sales declined 0.21% to Rs 9777 crore in the quarter ended September 2024 as against Rs 9797 crore during the previous quarter ended September 2023.

Sequentially, the company’s EBITDA (earnings before interest, tax, depreciation, and amortisation) for the quarter ended September 2024 fell to Rs 1,186 crore, down 3.65% compared to Rs 1,231 crore it reported in the corresponding quarter previous year.

Commenting on the performance, Managing Director, Jindal Stainless, Abhyuday Jindal, said, “India’s growth story is the single biggest driver of domestic manufacturing, especially in times of global uncertainties causing continued slowdown in exports. We appreciate the government's renewed focus to use stainless steel in bridges and infrastructural applications in corrosive environments to prevent loss of life and property.

The domestic market has always been our focus area, and we expect volume growth to pick up going forward. We also hope for a resolution to the ongoing dumping of subsidised and substandard imports from China and Vietnam, disturbing the level playing field for Indian manufacturers.” 

About Jindal Stainless Limited:

Founded in 1970, Jindal Stainless is dedicated to innovation and social responsibility while aiming to enrich lives. The company's product offerings include stainless steel slabs, coils, plates, and wire rods, and it leverages integrated operations to improve cost competitiveness and operational efficiency. Committed to sustainability, Jindal Stainless manufactures stainless steel using scrap in electric arc furnaces, which significantly reduces greenhouse gas emissions and allows for high-quality recyclability of its products. Jindal Stainless operates 16 manufacturing and processing plants in India and abroad, including in Spain and Indonesia, and maintains a presence in 12 countries. In India, it has established ten sales offices and six service centres to support its operations.

Key Takeaways from Polycab India Financial Performance:

• Polycab India reported a net profit of Rs 445.2 crore for Q2 FY24, up 3.6% from Rs 429 crore in the same quarter last year.
• Revenue from operations surged 30.4% to Rs 5,498.4 crore, the highest-ever for a second quarter, driven by robust growth across business segments.
• EBITDA increased by 3.7% to Rs 631.5 crore, compared to Rs 609 crore in Q2 FY23.
• The EBITDA margin fell to 11.5%, down from 14.4% in the previous year’s quarter.

The company's revenue from operations saw a significant jump of 30.4%, totaling Rs 5,498.4 crore compared to Rs 4,218 crore in the previous year, marking its highest-ever revenue for a second quarter, driven by strong growth across various business segments.

On the operating front, EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 3.7% to Rs 631.5 crore in the second quarter, compared to Rs 609 crore during the same period last year. However, the EBITDA margin decreased to 11.5%, down from 14.4% in the prior year's quarter. 

About Polycab India Limited:

Polycab India Limited is a prominent manufacturer and seller of wires, cables, and fast-moving electrical goods (FMEG) under the brand name ‘POLYCAB.’ Founded in 1996, the company has over four decades of industry experience. Polycab produces a wide range of products, including electric fans, LED lighting, switches, solar products, and various types of cables, such as power and control cables.

With 25 manufacturing facilities across India, including joint ventures, Polycab focuses on delivering innovative and customised products. The company emphasises quality and sustainability, with many facilities certified for international standards. Its strong distribution network includes over 3,464 authorised dealers and distributors, enabling it to reach over 100,000 retail outlets across the country. Polycab also exports products to more than 40 countries, solidifying its position as a leader in the electrical industry.

Key Takeaways from LTIMindtree Financial Performance:

• LTIMindtree reported a Q2 FY25 net profit of Rs 1,251 crore, up 7.7% year-on-year and 10.33% Q-o-Q.
• The company achieved consolidated revenue of Rs 9,432.9 crore for the quarter, reflecting a nearly 6% increase from Q2 FY24 and a 3.2% rise from Q1 FY25.
• Consolidated revenue from operations of Rs 9,432.9 crore for the quarter.
• LTIMindtree approved the closure of its subsidiaries LTIMindtree Spain S.L. and LTIMindtree LLC, while declaring an interim dividend of Rs 20 per equity share.

The Mumbai-based IT services firm reported consolidated revenue from operations of Rs 9,432.9 crore for the quarter, reflecting a nearly 6% increase from Rs 8,905.4 crore in Q2 FY24 and a 3.2% rise from Rs 9,142.6 crore in Q1 FY25. 

Additionally, the Board of Directors has approved the closure of its wholly-owned subsidiaries, LTIMindtree Spain S.L. and LTIMindtree LLC, as part of a rationalisation effort. 

The company also declared an interim dividend of Rs 20 per equity share, rewarding shareholders amid the company’s strong performance.

About LTIMindtree Limited:

LTIMindtree is a global company that provides technology consulting and digital solutions to help businesses rethink their models, speed up innovation, and grow by using digital technologies. As a partner for over 700 clients, LTIMindtree offers deep knowledge in various fields to improve competitiveness, enhance customer experiences, and achieve better business results in a connected world. With more than 81,000 skilled professionals in over 30 countries. LTIMindtree, part of the Larsen & Toubro Group, brings together the strengths of the former Larsen and Toubro Infotech and Mindtree to tackle complex business challenges and deliver large-scale transformations.

Key Takeaways from Wipro’s Financial Performance:

•  Gross revenue at Rs 223.0 billion ($2,662.6 million) showed a 1.5% increase in QoQ but a 1.0% decrease YoY.
• IT services revenue was $2,660.1 million, up 1.3% QoQ, down 2.0% YoY; non-GAAP revenue adjusted for currency saw a 0.6% QoQ increase.
• Net income rose to Rs 32.1 billion ($383.1 million), a 6.8% increase QoQ and 21.3% YoY; earnings per share increased to Rs 6.14 ($0.071).
• The Board recommended a 1:1 bonus share issue, granting shareholders one additional share for each share held.

Revenue from the IT services segment reached $2,660.1 million, showing a quarter-over-quarter growth of 1.3%. However, it experienced a decline of 2.0% year-over-year, indicating challenges in maintaining growth compared to the previous year.

When adjusted for currency fluctuations, the non-GAAP revenue for the IT services segment increased by 0.6% compared to the previous quarter, but it decreased by 2.3% year-over-year. This adjustment provides a clearer picture of the company's performance without the effects of currency volatility.

Total bookings amounted to $3,561 million. Notably, large deal bookings reached $1,489 million, which represents a significant increase of 28.8% from the previous quarter and 16.8% year-over-year when assessed in constant currency. This growth in large deals suggests strong demand for the company’s services.

The operating margin for the IT services segment was reported at 16.8%. This indicates a modest improvement, with an increase of 0.3% compared to the previous quarter and 0.7% compared to the same quarter last year, highlighting the company's efficiency in managing costs relative to its revenue.

The net income for the quarter stood at Rs 32.1 billion (about $383.1 million), reflecting a robust increase of 6.8% quarter-over-quarter and 21.3% year-over-year. 

Earnings per share were recorded at Rs 6.14 (approximately $0.071), which shows a 6.8% increase from the previous quarter and a 21.3% increase year-over-year. 

Operating cash flows reached Rs 42.7 billion (around $509.7 million), reflecting a year-over-year increase of 10.5%. The company also reported a voluntary attrition rate of 14.5% on a trailing 12-month basis. 

Wipro's Board of Directors recommended issuing bonus shares to shareholders at a ratio of 1:1, meaning that shareholders would receive one additional share for every share they currently hold. 

About Wipro Limited:

Wipro Limited is a top technology services and consulting company that focuses on creating innovative solutions for clients’ complex digital transformation needs. By using our wide range of skills in consulting, design, engineering, and operations, we help clients achieve their goals and build sustainable, future-ready businesses. With more than 230,000 employees and partners in 65 countries, we are dedicated to helping our clients, colleagues, and communities succeed in a constantly changing world.