In Q2, large-cap Nifty 50 companies delivered impressive financial performances, exceeding street estimates and boosting market sentiment. Strong earnings reports across sectors highlight resilient corporate fundamentals, despite macroeconomic challenges. Leading companies in banking and IT posted robust revenue growth and better-than-expected profitability, driven by cost optimization, increased demand, and strategic investments. These results have further reinforced confidence in India’s economic recovery, attracting both domestic and foreign investors.
HCL Technologies Limited
India’s third largest software services exporter reported a 0.5% quarter-on-quarter (QoQ) decline in net profit at Rs 4,235 crore while the YoY net profit stood at Rs 4,237 crore higher by 11.2% as compared to Rs 3,833 crore, beating ET estimates of Rs 4,097 crore. Better-than-expected performance in the first half of fiscal 2025 also gave the confidence to the firm to increase the lower end of the guidance. HCLTech revised its annual revenue guidance to 3.5-5% from its earlier range of 3-5% for fiscal 2025. HCLTech reported a revenue of Rs 28,862 crore, up 2.9% quarter on quarter (QoQ). Even on a yearly basis, the Q2 revenue was up by 8.2% from 26,672 crore to 28,862 crore.
HDFC Bank Limited
HDFC Bank’s Q2 FY25 net profit rose 5 percent on-year to Rs 16,821 crore, beating Street expectations. An average of seven brokerages’ estimates had pegged HDFC Bank’s fiscal second-quarter net profit at Rs 16,570 crore. India’s largest private sector bank’s net interest income (NII) rose 10 percent on-year to Rs 30,114 crore. The brokerage poll had pegged Q2 NII at Rs 30,306 crore. Core net interest margin was at 3.46 percent on total assets, and 3.65 percent based on interest-earning assets, HDFC Bank said in a stock exchange filing. Other income (non-interest revenue) for the quarter ended September 30, 2024, was Rs 11,480 crore, as compared to Rs 10,710 crore in a year ago period. The lender’s gross non-performing assets (GNPA) stood at 1.36 percent at the end of September, marginally higher than 1.33 percent at the end of the preceding quarter. HDFC Bank’s net NPAs stood at 0.41 percent, increasing from 0.39 percent on-quarter.
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Reliance Industries Limited
Mukesh Ambani-owned Reliance Industries Ltd (RIL) reported a 5% decline in its consolidated net profit to Rs 16,563 crore for the quarter ended September 2024. The same stood at Rs 17,394 crore in the year-ago period. The profit beat the ET Now poll estimate of Rs 15,716 crore. The revenue of the company has dipped by 1% from Rs 2,31,886 crore to Rs 2,31,535 crore.
However, the future outlook of the company looks to be strong as the company plans to expand in the hydrogen energy sector. Additionally, the company is also looking to tie up with NVIDIA and foray into semiconductor chip manufacturing.
Reliance Jio Infocomm also reported a 23.4% jump in its September quarter consolidated net profit at Rs 6,539 crore versus Rs 5,299 crore reported by the company in the year-ago period. The revenue from operations stood at Rs 31,709 crore, higher by 18% over Rs 26,875 posted by the company in the corresponding quarter of the previous financial year. The company also reported a strong 7.4% YoY increase in average revenue per user (ARPU) to Rs 195.1. The company further said that the full impact of the tariff hike will flow through in the next 2-3 quarters. Customer base in the reported quarter stood at 478.8 million which was up by 4.2% YoY.
AXIS Bank Limited
Axis Bank reported an 18% rise in the September quarter net profit at 6,918 crore on the back of strong trading income and low operating expenses. A Bloomberg analyst poll had pegged the profit at 6,370 crore. The bank had reported a profit of 5,863 crore in the year-ago quarter.
Net interest income the difference between interest earned on loans and that paid on deposits – a key source of income for banks, grew 9% year-on-year to 13,483 crore. Net interest margins for the September quarter basis eased to 3.99% against 4.11% a year ago. The gross non-performing asset ratio (GNPA) eased to 1.44% for the quarter under review versus 1.73% in the year-ago period. The net NPA ratio too reduced marginally to 0.34% versus 0.36% a year ago.
Written By: Dipangshu Kundu
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