Sharekhan Broker Research reports

Asian Paints Limited’s (APL’s) Q2FY2025 performance was a miss on all fronts with consolidated revenue declining by 5% y-o-y, OPM lower by 480 bps y-o-y to 15.4%; adjusted PAT decreased 34% y-o-y. Decorative paints’ volumes decreased by 0.5%.

Zydus Wellness Limited’s (ZWL’s) Q2FY2025 numbers were mixed with revenue growing by 12% y-o-y to Rs. 493 crore (versus Rs. 475 crore expected), while OPM stood flat y-o-y at 4% (against expectation of 5.3%). Adjusted PAT came in at Rs. 16 crore.

A muted show by OEMs marred Q2FY25 numbers, even though replacement demand was strong.

Divis Labs’ revenue for the quarter amounted to Rs. 2,238 crore, marking a 17% y-o-y increase and a 6% q-o-q rise, which was 4% above estimates.

Quarterly revenue reached Rs. 7,796 crore, up 8% y-o-y and 3% q-o-q, exceeding our estimates by 1%, while PAT was Rs. 817 crore, showing a 9% y-o-y increase but an 11% q-o-q decrease, falling 19% below our estimates.

Reported revenue grew 4.5% q-o-q/25.9 y-o-y to Rs. 543 crore, beating our estimates of Rs. 533 crore.

Va Tech Wabag’s adjusted net profit increased 27.8% y-o-y to Rs. 70 crore. Revenue of Rs. 700 crore grew 5.3% y-o-y and OPM stood at 13.4%, up 42 bps y-o-y.

JLR has maintained its full-year guidance despite subdued performance in Q2FY2025.

PAT at Rs. 18,331 crore (up 28% y-o-y) was significantly above estimates mainly driven by higher treasury gains and other income resulting in RoA/RoE at 1.17%/18.0% in Q2FY25.

Emami’s Q2FY2025 operating performance missed the mark with domestic volume growth coming at 1.7% versus expectations of 3-4%. Consolidated OPM came in-line at 28.1%.