Downgrades

Dalmia Bharat (DALBHARA)’s 2QFY25 performance was weak as expected as its EBITDA declined 26% YoY to INR4.3b (5% miss) and EBITDA/t was down 32% YoY to INR650 (est. INR700).

Cyient DLM (CYIENTDL) reported a strong quarter, with revenue growth of ~33% YoY in 2QFY25, led by significant traction in the defense (up 82% YoY) and aerospace (up 20% YoY) verticals.

Net earnings were almost in line due to a better performance by retail segment except MFI, higher other income, lower opex and credit cost. It also kept RoA steady.

Management has reduced its volume growth guidance for FY2025 to 9% y-o-y from 12% y-o-y, anticipating lower industry growth rate, while it continues to eye volume growth of 1.5x that of industry growth.

Earnings grew by a mere 2% y-o-y on the back of higher provisions although operating profits rose ~11% y-o-y.

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.

LTF reported a mixed Q2FY25 result with PAT of Rs6.96bn broadly in line with our estimates, whereas it was ~3% above Consensus estimates.

Zee Entertainment’s (Zee) revenue continued the declining trend as 2QFY25 revenue fell 18% YoY (5% miss) on softer advertising revenue (-8% YoY, 1% miss) and lower revenue from other sales and services (-77% YoY on a high base.

RBL Bank (RBK) reported 2QFY25 PAT of INR2.2b (12% miss, down 24% YoY), dragged down by high provisions.