Major Q3 results this week (January 20-25)
IndiGo Airlines
IndiGo Airlines reported a net loss of Rs 986.7 crore in Q2 FY25, its first loss in eight quarters, compared to a profit of Rs 188.9 crore in the same period last year. Revenue increased 14 per cent year-over-year to Rs 16,970 crore, but rising operational costs and seasonal weakness weighed on profitability. Analysts expect a recovery in passenger demand and improved load factors during the holiday season, which could boost revenues in the next quarter.
Zomato
Zomato posted a net loss of Rs 368 crore in Q2 FY25, widening from Rs 251 crore in the same quarter last year. Revenue grew 30 per cent to Rs 2,000 crore, driven by higher order volumes and improved average order values. Analysts predict sustained growth for Zomato in Q3 FY25, supported by expanding its subscription services and increasing customer engagement.
HDFC Bank
HDFC Bank reported a net profit of Rs 16,821 crore for Q2 FY25, a 5.3 per cent increase from Rs 15,976 crore in the same period last year. Net interest income rose by 10 per cent to Rs 30,110 crore, although gross NPAs increased to 1.36 per cent from 1.34 per cent in the previous quarter. The bank is expected to maintain strong loan growth in Q3 FY25, driven by robust demand from retail and corporate segments.
Hindustan Unilever Limited (HUL)
Hindustan Unilever Limited’s Q2 FY25 net profit declined by 2.4 per cent to Rs 2,591 crore, missing market expectations, compared to Rs 2,668 crore a year ago. Consolidated revenue grew by 2.1 per cent year-over-year to Rs 16,145 crore. Analysts anticipate better performance in Q3 FY25, driven by seasonal demand for personal and home care products.
Dr Reddy’s Laboratories
Dr Reddy’s Laboratories reported a 16.5 per cent increase in revenue to Rs 8,016.2 crore for Q2 FY25, exceeding estimates. However, profit fell 9.5 per cent to Rs 1,342 crore, with EBITDA margins narrowing to 25.6 per cent from 29 per cent. The company expects steady growth in its generics segment in Q3 FY25, bolstered by new product launches and higher market share.
UltraTech Cement
UltraTech Cement reported a consolidated net profit of Rs 825 crore for Q2 FY25, down from Rs 1,280 crore in the same period last year. Revenue declined by 2.4 per cent to Rs 15,635 crore, with weak pricing and monsoon-driven demand slowdown impacting performance. Seasonal construction activity and infrastructure projects are expected to drive demand in Q3 FY25.
JSW Steel
JSW Steel’s net profit plummeted 84.1 per cent year-over-year to Rs 439 crore in Q2 FY25, impacted by lower sales realisations due to cheap imports and an exceptional charge. Revenue fell 11 per cent to Rs 39,684 crore from Rs 44,584 crore in the year-ago period. The company anticipates intense production levels in Q3 FY25, targeting approximately 7 million tonnes of crude steel output.
ICICI Bank
ICICI Bank posted a 14.5 per cent year-over-year increase in standalone net profit to Rs 11,746 crore in Q2 FY25, exceeding expectations. Net interest income rose 9.5 per cent to Rs 20,048 crore, reflecting strong core performance. The bank is expected to maintain robust loan growth and stable margins in Q3 FY25, with further improvements in asset quality likely supporting profitability.
Paytm
Paytm reported a consolidated profit of Rs 930 crore in Q2 FY25, marking a turnaround from a loss of Rs 292 crore in the same period last year. The profit included a one-time exceptional gain of Rs 1,345 crore from selling its entertainment ticketing business to Zomato. Paytm plans to focus on expanding its payment services and financial offerings in Q3 FY25, though continued investments in technology and market expansion may moderate profitability.
Major Business Events
1. US President Donald Trump’s swearing-in ceremony today (January 20): Trump is expected to announce a series of tariff measures which might impact global trade.
2. Bharat Mobility Global Expo 2025 will end on January 22. This expo will concentrate on advancements in the automobile and e-mobility sectors, including electric vehicles and innovative transportation solutions. It aims to bring together industry leaders and innovators to discuss the future of mobility in India.
3. UK Unemployment Rate: The United Kingdom’s unemployment rate was 4.3 per cent from August to October 2024, unchanged from the previous period and aligning with expectations. The data for November is awaited.
4. US initial jobless claims: Initial jobless claims in the US decreased by 10,000 from the previous week to 201,000 in the week ending January 4, the lowest in eleven months. The numbers for the week ending Jan 11 are to be announced.
5. India Foreign Exchange Reserves: In India, the reserve decreased to $634.59 billion on January 3 from $640.28 billion in the previous week. The figures for the week ending January 10 are awaited.
IPO Listings:
- Laxmi Dental Limited IPO Listing: Scheduled for January 20, 2025.
- EMA Partners India Limited IPO Listing: Expected on January 24, 2025.
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