Anand Rathi Broker Research reports

Strong non-interest income (treasury and recovery) counterbalanced lower margins (due to penal charges reclassification), resulting in Union Bank of India’s decent operating performance and better RoA.

We expect it is likely to deliver 18%/22%/25% revenue/EBITDA/PAT CAGRs over FY25-27 due to swelling demand, capacity expansion and mounting exports.

Despite the unexpectedly weak, ~5.6% y/y, collections growth to Rs3.6bn, IndiaMart’s Q2 revenue rose ~18% y/y, in line with our estimate.

Better margins and non-interest income drove City Union Bank’s 13% q/q increase in core operating profits. Overall profitability remained strong. Ahead, we expect net slippages to remain negative since most of the stress has been recognised.

Improved demand drove Havells’ revenue to grow 16% y/y, but margins dragged the Q2 performance. Supported by festival season offtake, we remain optimistic regarding H2 and expect margins to recover.

Stable NIM and strong traction in non-interest income led to KVB’s sturdy Q2 operating performance, which, combined with moderate provisions kept profitability strong.

Steady balance sheet growth and high non-interest income growth led to healthy 18% y/y PAT growth for Axis Bank.

A pure-play global solar EPC and O&M service provider, Sterling & Wilson’s record Q2 orderbook of Rs105bn and the upgraded credit rating will help it achieve its FY25 revenue target of Rs80bn.

Tata Consultancy Services Limited (TCS) recorded revenue of Rs. 64,259 Crore, a growth of 7.6% YoY. The company recorded constant currency revenue growth of 5.5% in Q2 FY25.

Despite low channel stocks, the muted demand trend is likely to dent Crompton Greaves Consumer’s Q2 figures. Butterfly’s transformation is underway, and management expects to reap the benefits in the near
term.