Indian companies had posted muted earnings growth in Q2 and that dampened the mood of market, now as the Q3 result season have began, investors are keenly tracking them to take a cue for market direction. Though the expectations from Q3 is not much but management comments for upcoming quarters will be something to watch out for. IT, metal, pharma, energy, FMCG, consumer durable, agri based cos, auto, chemical are the primary sectors.
Q3 results so far
Till January 10,2024, only 30 companies have released their Q3 numbers, in them 13 have posted positive growth and 17 negative. Set’s lake a look at their numbers one by one –
Tata consultancy Services
TCS released a mixed set of Q3 numbers on January 9, 2024. Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 56 years. A part of the Tata group, India’s largest multinational business group, TCS has over 601,000 of the world’s best-trained consultants in 55 countries. The company generated consolidated revenues of US $29 billion in the fiscal year ended March 31, 2024.
- Revenue at ₹63,973 crore | Growth of 5.6% YoY, +4.5% in CC
- Operating Margin at 24.5%; a decline of 50 bps YoY, sequential improvement of 40 bps,
- Growth led by Consumer Business Group (+1.1%), Energy, Resources and Utilities (+3.4%) and Regional Markets (+40.9%)
- Growth Markets continue to lead: India (+70.2%), Middle East & Africa (+15.0%), Latin America (+7.0%), Asia Pacific (+5.8%)
- Net Income at ₹12,380 crore, +5.5% YoY
- Net Margin at 19.4%
- Strong TCV at US$10.2 Billion, Book to Bill ratio of 1.4
- Net Cash from Operations at ₹13,032 crore i.e. 105.3% of Net Income
- Workforce strength: 607,354 | LTM IT Services attrition rate at 13.0%
- Dividend per share: ₹ 76.00 including ₹ 66.00 as special dividend | Record date 17/01/2025 | Payment date 03/02/2025
Key highlights and management commentary
Key highlight of TCS’s Q3 was total contract value (TCV or order book) and India’s growth of more than 70% yoy, but India growth is not going to sustain as it was due to that large BSNL deal. Growth in key geographies like North America and continental Europe is still muted but high growth markets like MEA, UK and Asia pacific are strong. In terms of industry verticals growth is coming back in BFSI, energy and consumer business but verticals like technology, Healthcare and communication & media are still witnessing negative growth.
Manufacturing vertical saw muted growth this quarter after few straight quarters of outperformance. In terms of management commentary, it was largely positive. Management is seeing discretionary spending coming back going ahead.
Krithivasan, Chief Executive Officer and Managing Director, commented: “We are pleased with the excellent TCV performance in Q3 which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth. BFSI and CBG returning to growth, continued stellar run of Regional Markets and early signs of revival in discretionary spend in some verticals give us confidence for the future. Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships sets us up to capture the promising opportunities ahead.”
The upbeat commentary boosted the mood of market and share of TCS traded almost 6% higher on Fridays trading session.
Indian Renewable Energy Development Agency (IREDA)
A ‘Navratna’ company and India’s largest pure-play green financing NBFC with over 37 years of experience reported a strong set of Q3 numbers,
- The company’s total revenue from operations during the quarter ended December 2024 increased by 35.6% to ₹1,698.45 crore from 1,208.10 crore (YoY).
- IREDA’s operating profit grew 51% to 652cr from 432cr in the same quarter last year. Operating margin improved to 38.4%.
- The PSU’s net profits rose 27% to ₹425.38 crore in the third quarter of the financial year 2024-25, compared to ₹335.53 crore in the same quarter of the previous year.
- In the nine months of FY25, the company’s loan book grew 36% to 68,96cr.
- On a YoY basis, asset quality improved as co’s gross NPA dipped 7.6% to 2.68% from 2.90% earlier. Net NPA dipped 0.99% to 1.50% from 1.52% in same quarter last year.
- Despite good numbers, IREDA’s stock fell by 7% in Saturday’s trading session. The only possible negative in IREDA’s Q3 was asset quality on a sequential basis. QoQ PSU’s gross and net NPA grew marginally, so the market may not have liked it.
Tata Elxsi
Tata Elxsi, one of the leading providers of design-led technology services, announced a weak set of Q3 numbers,
- Reported Revenue at Rs. 939.2 Cr, +2.7% YoY, -1.7% QoQ
- Revenue growth +2.0% YoY in CC, Flat in CC QoQ terms
- EBITDA margin at 26.3%; PBT margin at 26.1%
- PBT at Rs. 255.8 Cr, -6.6% YoY, -14.3% QoQ
- PAT at Rs. 199.0 Cr, -3.6% YoY, -13.3% QoQ
The stock of Tata Elxsi closed more than 6.8% in the next trading session and is currently trading at Rs.6,000.
GTPL Hathway
GTPL Hathway Limited, India’s largest Digital Cable TV Service Provider and a leading Broadband Service provider, announced poor set Q3 numbers,
- Q3 FY25 Total revenue stood at ₹895cr, a growth of 4% Y-o-Y and QoQ
- EBITDA for Q3 FY25 stood at ₹ 1,13.8cr with an EBITDA Margin of 12.7% and an operating EBITDA margin of 21.8%. It was flat YoY but down QoQ.
- Profit after tax at 10.2cr was down significantly QoQ while it saw more than 20% dip YoY.
The stock of GTPL Hathway fell more than 10% post the poor result.
To know about more corporate updates including Q3 numbers, track the NSE announcement page
CESC
CESC, the RPSG group, is India’s first fully integrated electrical utility company (since 1899), with business interests in the generation and distribution of power. It is headquartered in Kolkata. The company presented a mixed set of Q3 numbers,
- The company’s gross Revenue grew 10.8% YoY to 3,567cr but fell QoQ due to seasonality.
- EBITDA grew 4.3% YoY to 1006cr.
- PAT fell 6.3% YoY to 282cr, significantly down QoQ.
- CESC continued to report a steady growth in power demand across the circles during the quarter. Kolkata Distribution business witnessed 4.4%+ YoY demand growth during 9MFY25.
- The Board of Directors has declared an interim dividend of Rs 4.50 per share (450%)
- Co’s renewable energy plans are progressing well and will be completed as scheduled.
The stock of CESC closed down more than 4% on result day and also will react on Monday.
PCBL
Another RPSG group company PCBL presented mixed Q3 earnings, growth in topline but dip in bottomline.
- Revenue from operations grew more than 20% YoY to 2,010cr
- EBITDA grew more than 10% to 328cr, EBITDA margin at 16% vs 17% in same quarter last year.
- Dip in PAT of more than 35% to 93cr vs 148cr in the same quarter last year.
- EPS at Rs.2.5
- PCBL Ltd changed its name to PCBL Chemical Ltd. to reflect the evolution into a broader chemicals-focused company. Co suggests this name change signifies a commitment to innovation and delivering advanced solutions as the company diversifies beyond carbon chemistry into new fields.
- The Board of Directors of PCBL has declared an interim dividend of Rs.5.50/ per equity share.
- Cos capacity expansion is happening as planed and the future growth outlook looks solid.
The stock of PCBL closed 1.6% down on result day, while most of the company presented muted Q3 FY25 numbers but management is confident of growth coming back in coming quarters. These stock movements will depend a lot upon how the headline index Nifty performs, click here to know the Nifty outlook going ahead.
