The Indian stock market is gearing up as 14 companies are scheduled to announce their financial results for the first quarter ended June 30, 2024. Among the key companies releasing their earnings are the IT giant HCL Technologies and the renewable energy firm Indian Renewable Energy Development Agency (IREDA).
Investors will be closely watching these results for indications of the overall economic health and corporate performance in the country. The IT sector, in particular, has been a key driver of India’s economic growth, and HCL Tech’s results will be closely scrutinized for any signs of slowdown or acceleration in business momentum.
However, TCS’s robust Q1 results have set a positive tone for the earnings season, indicating a potential improvement in the business landscape. The IT sector will be further in focus as HCL Technologies, among 13 other companies, unveils its financial performance for the quarter ended June.
Other companies releasing quarterly results include 5paisa Capital, Atharv Enterprises, Betala Global Securities, Gautam Gems, Golkonda Aluminum, Indo Cotspin, Infomedia Press, IREDA, and Oriental Hotels.
Tata Consultancy Services Q1 Results
Tata Consultancy Services (TCS) reported its Q1 FY25 results, aligning with market expectations. The consolidated net profit increased by 9% year-on-year to Rs 12,105 crore. The company’s April-June revenue from operations grew by 5.4% year-on-year to Rs 62,613 crore. Moneycontrol had estimated a profit of Rs 11,999 crore on a revenue of Rs 62,190 crore, based on an average of 10 brokerage estimates.
M-Cap (In Cr) | Revenue From Operations (In Cr) | Net Profit (In Cr) | Earnings Per Share | PE Ratio |
423,695 | 62,613 | 12,105 | 33.28 | 33.93 |
TCS faced margin pressure due to wage hikes during the quarter. The EBIT margin dropped to 24.7% in Q1, down 130 basis points from 26% in the previous quarter, matching Moneycontrol’s estimate of 24.7%.
HCL Tech Expectations
Based on brokerage firms’ average estimates, HCL Tech is anticipated to report a 6% year-on-year (YoY) increase in net profit for the quarter ending June 2024, amounting to Rs 3,745 crore.
The revenue for the quarter is expected to reach Rs 27,997 crore, marking a 6.5% growth compared to the same period in the previous financial year.
Q1 2025 (anticipated) Results
M-Cap (In Cr) | Revenue From Operations (In Cr) | Net Profit (In Cr) | Earnings Per Share | PE Ratio |
421,839 | 27,997 | 3745 | 57.86 | 33.93 |
Despite the YoY growth in profit after tax (PAT), a sequential decline is possible due to project completions and other factors.
IREDA
In Q4 of FY24, the renewable energy-focused public sector company reported a net profit of ₹337.37 crore, marking a 33% year-on-year increase.
Q4 2024 Results
M-Cap (In Cr) | Revenue From Operations (In Cr) | Net Profit (In Cr) | Earnings Per Share | PE Ratio |
78,488 | 139125 | 337.37 | 4.66 | 20.59 |
As of Q4 FY24, IREDA’s loan book reached ₹59,698.11 crore, up from ₹47,052.52 crore in the same quarter the previous year, reflecting a growth of 26.81%. The company recorded all-time high annual loan sanctions of ₹37,353.68 crore and disbursements of ₹25,089.04 crore in FY24, showing increases of 14.63% and 15.94%, respectively, compared to the previous year’s loan sanctions of ₹32,586.60 crore and disbursements of ₹21,639.21 crore.
IREDA’s shares were launched on the stock market in November 2023 at ₹32 per share. Since then, the stock price has surged over eight times its initial public offering (IPO) price, approaching ₹300.
Factors influencing Q1 results
Several factors could impact the Q1 results of these companies, including:
- Global economic conditions: The ongoing geopolitical tensions, inflationary pressures, and supply chain disruptions have created uncertainties in the global economy, which could affect the performance of Indian companies.
- Domestic economic growth: India’s economic growth has been relatively resilient, but factors such as monsoon performance, government spending, and consumer sentiment can influence corporate earnings.
- Industry-specific trends: Companies’ performance will also depend on the specific trends in their respective industries. For instance, the IT sector faces challenges related to talent retention and wage hikes, while the renewable energy sector is benefiting from government support and increasing demand for clean energy. Investors are advised to exercise caution while interpreting the results and consider other factors, such as valuations, long-term growth prospects, and the competitive landscape, before making investment decisions.
*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 recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQs
Which companies are reporting Q1 earnings?
A list of the 14 companies are announcing their Q1 earnings results.
What is the impact of global economic conditions on IT companies like HCL Tech?
Global economic conditions significantly impact IT companies like HCL Tech. A downturn can lead to reduced IT spending by clients, affecting revenue and growth. However, IT is often seen as a cost-saving measure during tough times, which can benefit IT companies. Additionally, factors like currency fluctuations and geopolitical tensions can influence their bottom line.
How can investors benefit from the Q1 earnings season?
Q1 earnings season offers valuable insights for investors. By analyzing company performance, you can identify potential investment opportunities and risks. Compare actual results with expectations to gauge market reactions. Diversify your portfolio and consider long-term investment goals. Remember, thorough research is essential before making any investment decisions.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
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