Quarterly Earnings: Tech Mahindra, HDFC Bank, Kotak Mahindra Bank Report Impressive Growth
Team FS
21/Oct/2024

What's Covered Under the Article:
Tech Mahindra's net profit increased by 45% QoQ, showcasing strong revenue growth and beating market expectations.
HDFC Bank reported a significant 8% QoQ rise in profits, driven by steady sales performance and operational efficiency.
Kotak Mahindra Bank's quarterly report highlighted a mixed performance with a decline in EBIT but a notable revenue increase.
The quarterly earnings season for October 2024 has brought a mixed bag of results for some of India’s major companies. From the banking sector to technology and manufacturing, the financial reports indicate significant trends, providing insight into the overall economic climate. Tech Mahindra, HDFC Bank, and Kotak Mahindra Bank are among the key players whose performances have been closely monitored.
Tech Mahindra:
Tech Mahindra posted remarkable results for the quarter ending in September 2024, with a 12% QoQ growth in EBIT and an impressive 45% increase in net profit, amounting to ₹1,258 crore. This strong performance is attributed to its growing sales, which were up by 2% QoQ. The company’s earnings per share (EPS) also surged by 47%, reaching ₹12.78 compared to the previous quarter’s ₹8.71. This growth reflects the company's robust business operations and its ability to outperform market expectations.
HDFC Bank:
HDFC Bank continues to remain one of India’s financial giants, showcasing a steady performance with 2% QoQ sales growth and an 8% increase in net profit, totalling ₹18,627 crore for Q2 FY2024. Despite a slight dip in EBIT by 3% QoQ, the bank’s EPS rose by 8%, reflecting strong profit margins and efficient operational management. This financial report positions HDFC Bank as a leading force in the banking sector, maintaining a dominant market share with a Price-to-Earnings (PE) ratio of 19.
Kotak Mahindra Bank:
Kotak Mahindra Bank had a mixed quarter, with its EBIT declining by 7% QoQ, though its net profit of ₹5,044 crore showed a 13% YoY increase. The bank’s EPS of ₹25.37 is down by 32% QoQ, reflecting challenges in maintaining the same level of operational profitability. However, the 4% QoQ rise in sales, bringing in ₹16,427 crore, demonstrates the institution's continued resilience in generating revenue, supported by strong customer growth and effective financial product offerings.
PC Jeweller:
PC Jeweller has also delivered a strong performance this quarter, with a 26% QoQ increase in sales and a whopping 15% rise in net profit, standing at ₹179 crore. This jewellery company, which has been working to recover from past challenges, posted an EPS of ₹3.84, up by 15% QoQ. This showcases the success of its strategic efforts to revive growth and profitability in a highly competitive market.
Dalmia Bharat Ltd:
Dalmia Bharat Ltd had a challenging quarter, with sales falling by 15% QoQ and EBIT taking a significant hit, decreasing by 35%. Net profit also dropped by 66% QoQ, amounting to ₹49 crore. The cement major’s EPS declined to ₹2.45, a 67% drop. This reflects broader challenges in the construction and infrastructure sectors, impacting the company's overall financial health.
Frog Cellsat:
Frog Cellsat displayed impressive growth with 22% QoQ sales growth and a 253% rise in net profit. With an EBIT increase of 28% QoQ, the company posted a net profit of ₹4 crore and an EPS of ₹2.67, indicating strong financial performance in this quarter.
Rossari Biotech:
Rossari Biotech reported a modest 2% QoQ sales increase, contributing to steady revenue growth. Its net profit remained flat QoQ at ₹35 crore, while EPS saw a minor uptick of 1%, reaching ₹6.39.
Multi Commodity Exchange:
Multi Commodity Exchange (MCX) had a strong quarter with 22% QoQ sales growth and an impressive 35% increase in EBIT. The company’s net profit surged by 39% QoQ, showcasing its dominance in the commodity market.
UCO Bank:
UCO Bank reported stable growth with a 1% QoQ sales rise and a 9% increase in EPS, signalling consistent performance despite challenges in the financial sector. The bank's net profit grew by 9% QoQ to ₹603 crore.
Lloyds Engineering:
Lloyds Engineering demonstrated robust growth, with 57% QoQ sales growth and 26% EBIT growth. The company's EPS surged by 26%, indicating a strong financial position.
Netweb Technologies:
Netweb Technologies reported stellar growth with 68% QoQ sales growth and a 67% rise in net profit. The company's EPS of ₹4.56 was up by 66% QoQ, solidifying its position as a leading technology company.
RBL Bank:
RBL Bank saw modest gains with 1% QoQ sales growth, but its net profit declined by 40% QoQ, reflecting challenges in the financial sector. The bank’s EPS dropped by 40%, indicating a tough quarter ahead.
Conclusion:
Overall, the Q2 earnings season has delivered a variety of outcomes, with Tech Mahindra and HDFC Bank leading the way in terms of profit growth, while Kotak Mahindra Bank and Dalmia Bharat faced more challenging quarters. As the earnings season progresses, investors will continue to monitor these companies closely, along with others like PC Jeweller, Multi Commodity Exchange, and Netweb Technologies, for further insights into the evolving economic landscape.
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