Sharekhan Broker Research reports

Net earnings significantly beat estimates due to negligible credit costs driven by reversal of provisions. NII beat estimates, rising 3.2% to Rs. 1,911 crore, growing by 12.5%/5.6% (y-o-y/q-o-q) driven by AUM growth and higher than expected yield on portfolio.

Info Edge’s Q3FY25 standalone revenue stood at Rs. 672 crore, up 2.4% q-o-q/12.8% y-o-y, slightly missing our estimate of Rs. 682 crore. Total billings stood at Rs. 668 crore, up 15.8% y-o-y. Billing growth for the recruitment business grew 15.2% y-o-y.

Tata Power Company Limited’s (TPCL) Q3FY25 Adjusted PAT grew by 8.2% y-o-y to Rs. 1,031 crore, which was inline with our estimates.

Operational performance was healthy led by strong loan growth/ fee income, recoveries from W/O accounts and contained opex growth. Net Interest Income at Rs. 588 crore (marginally below estimates) was up 14% y-o-y/ 1% q-o-q.

IndusInd Bank (IIB) reported weak performance in Q3FY2025 across key metrics on expected lines. Net interest income (NII) at Rs. 5,228 crore (below estimates led by lower NIM and slower credit growth) was down 1% y-o-y/2% q-o-q. NIM fell by 15 bps q-o-q to 3.93%, given lower growth in the unsecured book, repricing of the corporate book, higher slippages, and increased cost of funds (9 bps q-o-q).

TCPL’s Q3FY25 numbers are not exactly comparable on y-o-y basis due to consolidation of acquired businesses - Capital Foods and Organic India. TCPL’s Q3FY25 performance was impacted by sharp increase in the tea prices (up by 20-40%) which led to 234 bps y-o-y decline in the consolidated OPM to 12.7%.

Jyothy Labs Limited’s (JLL’s) Q3FY25 performance was muted with revenue growing by just 4%, while a ~110 bps y-o-y decline in OPM led to 4% y-o-y decline in PAT.

Strong asset quality trends continued to drive earnings and RoA although operating performance was muted. NII at Rs. 11,032 crore (above estimates) grew by 7% y-o-y/5% q-o-q. NIMs were broadly stable, improved by 1 bps q-o-q to ~2.93%. Interest on IT refund & interest income from NPA recoveries,

Transport Corporation of India Limited (TCI) reported higher-than-estimated consolidated revenue at Rs. 1,147 crore (up 14.5% y-o-y), driven by growth in SCM (12.9% y-o-y), while freight (up 8.8% y-o-y) remained soft as expected and Seaways revenue (up 9% y-o-y).

RKL’s Q3FY25 performance was good with revenue growth of 11.5% y-o-y to Rs. 1,294 crore and OPM rising by 191 bps y-o-y to 14.2%, which led to PAT growth of 27% y-o-y to Rs. 96 crore.