8 Companies, Including Airtel and Zomato, Exceed FY24 Profits in HY25: 5 Reasons Behind the Success

In a world of economic uncertainties, some companies are showing that smart planning and resilience can lead to success. Despite a slowing market, a few have already surpassed their full-year FY24 profits in just the first half of FY25 (HY25). 

Eight BSE 200 companies, including Bharti Airtel, Zomato, Vedanta, Dixon Technologies (India), PB Fintech, Godrej Properties,  Voltas, and Adani Wilmar, surpassed their full-year FY24 profits within the first half of FY25. Their success was driven by higher revenues, reduced input costs, and better operating cash flows. Source: Economic Times

This achievement highlights their strong business strategies and adaptability. Let’s explore what’s driving their success in detail and what it means for the market. But first, let’s look at the financial performance of these 8 companies.

Bharti Airtel

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP	PE Ratio	Y-o-Y Return %
9,60,469	Revenue	Net Profit	Revenue	Profit	1,605	67.8	60.0
	1,49,982.4	7467.0	79,979.7	7753.1

For Bharti Airtel, profit increased modestly by 3.8% to Rs. 7753.1 crore in HY1FY25, compared to Rs. 7467 crore in FY24. 

Zomato

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP (as of 9-12-24)	PE Ratio	Y-o-Y Return %
2,86,133	Revenue	Net Profit	Revenue	Profit	296	386	154.8
	12,114.0	351	9005	429

Zomato’s net profit jumped 22% to ₹429 crore in HY125 from ₹351 crore in FY24. 

Vedanta

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP (as of 9-12-24)	PE Ratio	Y-o-Y Return %
1,91,531	Revenue	Net Profit	Revenue	Profit	490	18.5	101.5
	1,41,793	4239	72,410	7958

Vedanta’s net profit jumped to ₹7,958 crore in HY1FY25 from ₹4239 crore in FY24, marking an increase of 87%.

Dixon Technologies (India)

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP (as of 9-12-24)	PE Ratio	Y-o-Y Return %
1,03,901	Revenue	Net Profit	Revenue	Profit	17,298	185	191.3
	17,690.9	367.8	18,113.9	523.5

Dixon’s net profit soared by 42% to ₹523.5 crore—significantly surpassing its FY24 net profit of ₹367.8 crore.

PB Fintech

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP (as of 9-12-24)	PE Ratio	Y-o-Y Return %
96,274	Revenue	Net Profit	Revenue	Profit	2098	556	155.9
	3437.7	67.0	2177.7	110.9

The profit surged to ₹110.9 crore in H1FY25, marking a 65% increase from ₹67 crore recorded in FY24.

Godrej Properties

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP (as of 9-12-24)	PE Ratio	Y-o-Y Return %
85,098	Revenue	Net Profit	Revenue	Profit	2825	61.4	46.7
	3035.6	725.3	1832.2	855.3

Net profit increased by 18% to ₹855.3 crore in HY1FY25, exceeding FY24’s net profit of ₹725.3 crore.

Voltas

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP (as of 9-12-24)	PE Ratio	Y-o-Y Return %
58,108	Revenue	Net Profit	Revenue	Profit	1756	106	102.4
	12,407.4	252	7505.1	468.2

The profit surged to Rs. 468.2 crores in H1FY25, marking an 85% increase compared to the Rs.252 crore registered in FY24.

Adani Wilmar

Market Cap in Crore (as of 09-12-24)	FY 24		HY1FY25		CMP (as of 9-12-24)	PE Ratio	Y-o-Y Return %
40,485	Revenue	Net Profit	Revenue	Profit	312	38.4	-21.1
	51261.6	148	28,629	312.9

The company’s revenue rose by 13.6% year-on-year to ₹28,629 crore. Adani Wilmar achieved a net profit of ₹312.9 crore in H1FY25, reflecting a 111% increase compared to the ₹148 crore profit reported for FY24.

5 Key Factors Driving the Success of These Companies

There were different reasons for the solid performance of companies in H1FY25.

1. Enhanced Operating Efficiency

Zomato achieved significant profit growth in HY25, driven by improved operational efficiency. Enhanced operating leverage allowed the company to maximize profitability, even amid a challenging market environment.

2. Strategic Cost Management

Adani Wilmar benefitted from strategic improvements, including increased sales and reduced raw material costs. This dual approach boosted revenue and enhanced overall profitability, turning losses into gains.

3. Optimized Inventory Management

Godrej Properties’ success in HY25 can be attributed to strategic inventory changes. These adjustments were crucial in driving profit growth and ensuring better resource allocation.

4. Tax Optimization

Vedanta’s remarkable profit surge was largely due to reduced tax outgo. The company significantly enhanced its net profitability by optimizing its tax strategy, showcasing the impact of efficient financial planning.

5. Robust Revenue Growth

Across these companies, strong year-on-year revenue growth provided the foundation for their success. Increased sales, efficient operations and strategic cost management combined to deliver outstanding financial results in HY25.

Understanding the HY25 Performance Milestone

“HY25” refers to the first half of the financial year 2025, from April to September 2024. Companies typically set their performance benchmarks based on annual figures, but some have surpassed their entire FY24 profit levels in just six months.

This achievement is particularly noteworthy in a slowing economy, where many industries struggle with inflation, high interest rates, and slow demand. It signals operational efficiency and the ability to pivot in challenging times.

The Market Reaction

Investors have noted these outperformers. Stocks of such companies have witnessed significant price rallies, often outperforming benchmark indices. Analysts see these firms as safer bets, especially in uncertain economic conditions.

Challenges and Sustainability of Growth

While the HY25 numbers are looking good, sustaining this level of growth poses its own set of challenges:

1. Global Slowdown Risks: A prolonged economic slowdown could dampen demand in the coming quarters.
2. Geopolitical Uncertainty: Trade wars, sanctions, and regional conflicts might impact supply chains.
3. Competition: Success attracts competitors, which may pressure margins.
4. Cost Inflation: Rising input costs could erode profits if not managed effectively.

Companies that consistently innovate and focus on operational efficiency will likely maintain their edge.

Investor Takeaways

Focus on Fundamentals

Investors should prioritize companies with strong fundamentals, including low debt, consistent cash flows, and a clear growth strategy. While H1FY25’s performance is impressive, long-term sustainability matters more. Evaluate how these firms plan to navigate future challenges.

Diversify Your Portfolio

To balance risks and opportunities, include a mix of sectors and geographies. Sectors like technology, banking, and consumer goods are outperforming, but macroeconomic conditions shifts can alter this landscape.

Conclusion

The success of companies exceeding FY24 profits in HY25 shows the value of resilience, smart strategies, and efficient operations. These businesses prove that growth is possible even in tough economic times. These trends offer important insights into shifting business dynamics for investors and industry watchers. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

FAQs