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quarterly earnings reports reveal mixed results across various sectors
The Q2 earnings season for FY25 is underway, with major companies like Apollo Hospitals, Kansai Nerolac Paints, and Trident set to release their results. While many firms have reported, the overall corporate earnings scorecard has been weak, with only 62% meeting or exceeding profit expectations, particularly in the consumption sector. Notably, GAIL's earnings missed expectations due to lower gas trading margins, while Power Grid's profit remained flat year-on-year.
digital firms face pressure for profitability ahead of swiggy ipo launch
As Swiggy prepares for its Rs 11,300 crore IPO on November 6, bankers emphasize the need for digital firms to demonstrate quick profitability. Unlike previous years, when companies could list without a clear path to profits, the current market demands visibility of profitability within two to three quarters post-listing.
Q2 2024 earnings season gains momentum with major companies reporting results
Major companies including Coal India, JSW Steel, DLF, and Interglobe Aviation are set to release their Q2 earnings reports today, joining a wave of firms that have already reported results. Notable performances include Reliance Industries with a profit decline of 4.8%, while HCL Technologies and TCS reported profit increases of 10.5% and 5.0%, respectively. ICRA's profit rose by 15.6% to Rs 36.72 crore, and Oracle Financial Services Software saw a significant profit increase of 38.4% to Rs 577.70 crore.
Nifty and Sensex decline as midcaps outperform amid mixed sector performance
Nifty and Sensex have erased early gains, with Nifty failing to hold above 24,500, while the smallcap index rose by 1%. IT and FMCG sectors showed gains, but autos, pharma, and metals lagged behind. Key gainers included Bajaj Finance and Tech Mahindra, while M&M and Sun Pharma were among the top losers.
paytm targets 83 percent reduction in esop costs by fiscal year 2027
Paytm aims to cut its Employee Stock Option Plan (ESOP) costs by 83% to Rs 242 crore by FY27, down from Rs 1,466 crore in FY24. The company plans to reduce expenses to Rs 945 crore in FY25 and Rs 567 crore in FY26, assuming no new ESOPs are granted and existing options fully vest. Employee attrition may further ease financial burdens through lapses in unvested ESOPs.
paytm achieves first net income after asset sale to zomato
Paytm achieved its first net income of 9.3 billion rupees ($111 million) in the quarter ending September, driven by a 13.5 billion rupee gain from selling its events business. This marks a significant turnaround for the fintech company, which had been expected to report a loss of 6.3 billion rupees, despite a 34% decline in sales to 16.6 billion rupees.
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