Stocks to Focus: JM Financial, Tech Mahindra, IndiGo, Adani Green, DLF, Ashok Leyland
Mankind Pharma is set to acquire Bharat Serums & Vaccines (BSV) from Advent International for around Rs 13,630 crore. This acquisition will solidify Mankind Pharma's position in the Indian women's health and fertility drug market and give them access to critical care products with high entry barriers. Swedish private equity firm EQT and the Abu Dhabi Investment Authority (ADIA) consortium were also in the bidding process.
Tech Mahindra reported a 29% sequential rise in net profit to $102 million for the quarter ending June 2024, primarily due to a 14% reduction in subcontracting costs. Revenue increased 0.7% sequentially to $1.56 billion, with significant growth in its healthcare business. Despite these results, analysts had anticipated higher profits. The company aims to boost its operating margin to 15% by March 2027 through its cost management program, Project Fortius.
IndiGo will release its Q1FY25 results on July 26, following challenges like the roof collapse at Delhi airport and a global Microsoft services outage. The airline's domestic market share rose to 61%, and it saw growth in both domestic and international departures. IndiGo’s capacity by Available Seat Kilometres (ASK) grew by 11% year-over-year. The airline’s revenue will depend on compensation from Pratt & Whitney for lost revenue due to grounding. IndiGo is expected to continue its streak of profits for the eighth consecutive quarter.
Adani Green Energy reported a 95% increase in consolidated net profit to Rs 629 crore for Q1FY25, compared to Rs 323 crore the previous year. Total income rose 22.5% to Rs 3,122 crore, driven by a capacity addition of 2,618 MW, expanding operational capacity by 31% year-over-year to 10,934 MW. CEO Amit Singh highlighted the development of a 30 GW renewable energy plant in Khavda, Gujarat, using advanced robotics for solar module installation.
DLF posted a 23% rise in consolidated profit to Rs 645.61 crore for Q1FY25, up from Rs 527 crore the previous year. Total income increased to Rs 1,729.82 crore from Rs 1,521.71 crore.
Ashok Leyland reported an 11.2% increase in EBITDA to Rs 912 crore for Q1FY25, with a margin increase to 10.6%. Revenue grew 5% year-over-year to Rs 8,599 crore. However, net profit fell 8.7% to Rs 526 crore due to a one-time tax implication. Chairman Dheeraj Hinduja noted the industry’s growth momentum and the company’s focus on electric vehicles through its subsidiary, Switch Mobility.
Nestle India reported a 7% rise in net profit to Rs 746.6 crore for Q1FY25, with revenue increasing 3.3% to Rs 4,814 crore. Despite challenges like food inflation and volatile commodity prices, the company saw growth across product groups. EBITDA grew 4.3% to Rs 1,103 crore, with a margin of 22.9%. E-commerce contributed 7.5% of domestic sales, growing at double digits.
Ramco Cements reported a 55% year-over-year decline in net profit to Rs 35.5 crore for Q1FY25. Revenue from operations dipped 6.8% to Rs 2,088.4 crore. EBITDA fell 6.4% to Rs 319.5 crore, with a margin of 15.3%. The decline was attributed to weak demand and a drop in cement prices.
Jupiter Wagons reported a 46% year-over-year increase in net profit to Rs 91.9 crore for Q1FY25. Revenue from operations rose 16.8% to Rs 879.9 crore. EBITDA jumped 41.1% to Rs 136.7 crore, with a margin of 15.5%. The company’s wheelset manufacturing subsidiary saw a five-fold increase in revenue. Its order book stood at Rs 7,028.34 crore.
Axis Bank posted a net profit of Rs 6,035 crore for Q1FY25, up from Rs 3,452 crore the previous year, but down 15% sequentially. Asset quality worsened, with gross NPAs rising to 1.54%. Brokerages had mixed reactions, with some downgrading the stock and others maintaining a buy rating but lowering target prices.
Mphasis reported a 2.1% year-over-year increase in net profit to Rs 404 crore for Q1FY25. Revenue rose 4.6% year-over-year to Rs 3,422 crore. The company saw steady improvement in client demand and a strong deal pipeline. Operating margin grew 10 bps sequentially to 15%. The company’s headcount decreased by 1,019 employees to 31,645.
United Breweries, controlled by Heineken NV, reported a 27.47% rise in consolidated net profit to Rs 173.80 crore for Q1FY25, up from Rs 136.34 crore a year ago. Revenue from operations increased by 10.83% to Rs 5,811.28 crore, driven by a 5% volume increase and a 44% rise in the premium segment. Gross profit margin improved by 247 bps. Total expenses rose 10% to Rs 5,585.19 crore. UBL invested Rs 47 crore in Capex for supply chain initiatives.
PNB Housing reported a 25% increase in net profit to Rs 433 crore for Q1FY25, up from Rs 347 crore a year ago. Gross NPAs declined by 241 bps to 1.35%, and net NPAs fell to 0.92%. Disbursements grew 19% year-over-year to Rs 4,398 crore, with retail disbursements constituting 99%. Net Interest Income rose 4% year-over-year to Rs 651 crore. Operating expenditure increased by 27% year-over-year to Rs 190 crore. The stock closed at Rs 780.60 on BSE, up 0.55%.
JM Financial reported a 6.2% year-over-year decline in net profit to Rs 60.4 crore for Q1FY25. Revenue from operations fell 5.4% to Rs 219 crore. EBITDA declined 8% to Rs 167.9 crore, with a margin of 76.7%.
Venus Pipes & Tubes reported a 58% increase in PAT to Rs 27.55 crore for Q1FY25, driven by higher exports. Revenue from operations rose 34% to Rs 240.1 crore. Export revenue jumped eight times to Rs 60.9 crore. The company saw strong growth in the seamless and welded pipes segments, with significant order inflows from the oil and gas sector.
Go Digit General Insurance reported a 22.1% increase in gross written premium to Rs 2,660 crore for Q1FY25, compared to Rs 2,178 crore the previous year. Profit jumped 74.1% to Rs 101 crore, compared to Rs 58 crore the previous year. Assets under management rose 33.3% to Rs 17,773 crore, while the combined ratio fell to 105.4% from 106.2%.
Glenmark Life Sciences reported a 17.7% decline in profit to Rs 111.5 crore for Q1FY25, compared to Rs 135.5 crore the previous year. Revenue grew 1.8% to Rs 588.6 crore, compared to Rs 578.5 crore the previous year.
Mahanagar Gas reported a 7.4% increase in profit to Rs 284.5 crore for Q1FY25, compared to Rs 265 crore the previous year. Revenue (excluding excise duty) rose 1.4% to Rs 1,589.6 crore, compared to Rs 1,567 crore the previous year.
Chalet Hotels reported a 31.6% decline in consolidated profit to Rs 60.6 crore for Q1FY25, from Rs 88.7 crore the previous year. Revenue grew 16.2% to Rs 361 crore, compared to Rs 310.8 crore the previous year. Tax expenses in the quarter came in at Rs 17.07 crore, compared to a tax write-back of Rs 51.5 crore the previous year.
Aavas Financiers reported a 15% increase in profit to Rs 126.1 crore for Q1FY25, compared to Rs 109.7 crore the previous year. Revenue grew 16.2% to Rs 542.4 crore, compared to RS 466.8 crore the previous year. Assets under management rose 22% to Rs 17,841.5 crore, compared to Rs 14,650 crore the previous year. Disbursements rose 13% to Rs 1,210.9 crore, compared to Rs 1,068.2 crore the previous year.
Praj Industries reported a 43.5% increase in consolidated net profit to Rs 84.2 crore for Q1FY25, compared to Rs 58.7 crore the previous year. Revenue fell 5% to Rs 699.1 crore, compared to Rs 736.7 crore the previous year.
Motilal Oswal Financial Services reported a 68% increase in profit to Rs 883.6 crore, compared to Rs 526.1 crore the previous year. Revenue jumped 54% to Rs 2,312.3 crore, compared to Rs 1,501.5 crore the previous year.
SJVN received a Letter of Intent for the allotment of the Darzo Lui pumped storage project from the Government of Mizoram with an installed capacity
