HDFC Bank Limited (also known as HDFC) is an Indian banking and financial services company headquartered in Mumbai. It is India’s largest private sector bank by assets and the world’s tenth-largest bank by market capitalization. The company is India’s one of 3 systemically important banks with a 15% market share in the banking sector’s advances and a 37% market share in the private sector banks’ advances as of FY24. It is also the second-largest bank in India. The Bank has a distribution network of 8,851 branches and 21,163 ATMs across 4,081 cities.
Industry Outlook
Indian banks are witnessing a resurgence in credit demand, driven by growth across retail, MSME (Micro, Small, and Medium Enterprises), and corporate segments. Credit growth is expected to be 10-12% in FY25, fuelled by increased consumption, infrastructure spending, and recovery in sectors like real estate and manufacturing. NPAs expected to decline to around 4% in FY25. Enhanced risk management practices, improved loan recovery rates, and a healthier economic environment are contributing to better asset quality, which is likely to support profitability. The Reserve Bank of India (RBI) is focused on strengthening the banking sector through regulations around capital adequacy, governance, and digital banking frameworks.
Segmental Information
Wholesale Banking: The Wholesale Banking Business of HDFC Bank serves a diverse clientele including Large Corporates, Multinational Corporations, Government, Public Sector Enterprises, Emerging Corporates and Business Banking/SMEs. Offering a wide array of financial products and services such as loans, deposits, payments, collections, tax solutions, trade finance, cash management solutions and corporate cards, etc. This business largely covers the rental discounting business as well as construction finance.
Retail Banking: HDFC Bank’s Retail Business caters to a varied client base which includes Individuals, salaried professionals, small businesses like kirana stores, and Non-Resident Indians (NRIs). Among the offerings are Savings and Current Accounts, various loan options for personal and business needs, Credit and Debit Cards, Digital Wallets, Insurance and Investment Products and Remittance Services.
Treasury: The Treasury department is responsible for managing the Bank’s liquidity requirements, as well as handling its investments in securities and other market instruments. It manages the balance sheet’s liquidity and interest rate risks and ensures compliance with statutory reserve requirements. It also manages the treasury needs of customers and earns a fee income generated from transactions customers undertake with your Bank, while managing their foreign exchange and interest rate risks.
Quarterly Highlights
Revenue for Q2 FY25 is Rs 74,017 compared to Rs 67,698 crore in Q2 FY24.
Financing profit of Rs 10523 crore in this quarter, with the margin of 14%.
Net Profit is Rs 16821 crore in Q2 up from Rs 15,976 crore in Q2 FY24.
Operational Highlights
Average Deposits in Q2 were Rs 23,540 bn up by 15.5% YoY, growth in Advances under management is 10.2% YoY to Rs 25,639 bn. The fee income is around Rs 8000 crore for Q2.
Retail/Wholesale deposits are 84% & 16% respectively for Q2 FY25. And the CASA deposits are Rs 2754 bn for Current Accounts, Rs 6081 bn for Savings Accounts and the CASA ratio is 35% for Q2 FY25.
Branch network in Q2 is of 9092 branches, of which Semi-Urban has highest branches accounting for 34%.
The Net revenue mix is 72% for Net Interest Income and 28% for Non-Interest Income, and this proportion has steady.
The Yield on Assets are 8.3% and cost of funds are 4.9%. Their difference shows us the earnings of bank through lending it to retail. Lower the cost, higher the profit margin in lending.
Incorporated as a private limited company in New Delhi on May 15, 1998, SBI Cards and Payment Services Limited is a prominent subsidiary of the State Bank of India (SBI) and became a public limited company in August 2019. It specializes in issuing credit cards and functions as a corporate insurance agent, offering policies to cardholders. Currently, it is the second-largest credit card issuer in India, managing over 1.79 crore active credit cards. Since its inception, SBI Cards has leveraged SBI’s trusted brand to become a reliable provider of diverse credit card products, supporting cashless and digital transactions in India. The company’s growth has been notable, achieving higher-than-market expansion in terms of credit card numbers and spend. Between March 2017 and March 2019, its credit card spends grew at a CAGR of 54.2%, outpacing the overall industry’s growth. This success is attributed to India’s economic and demographic trends, such as rising incomes, increasing consumer demand, and e-commerce expansion. With a robust customer acquisition network, SBI Cards utilizes over 32,000 outsourced sales personnel in 145 cities, operating through physical outlets and digital channels, including its website and mobile app. SBI Cards also benefits from SBI’s network, accessing its vast customer base via 21,961 branches, enhancing its reach. SBI Cards has established a robust position in India’s credit card market by diversifying its products, expanding partnerships, and leveraging SBI’s brand and network. The company’s forward momentum continues with its focus on digital expansion and innovative offerings tailored to India’s evolving consumer needs.
Incorporated as a private limited company in New Delhi on May 15, 1998, SBI Cards and Payment Services Limited is a prominent subsidiary of the State Bank of India (SBI) and became a public limited company in August 2019. It specializes in issuing credit cards and functions as a corporate insurance agent, offering policies to cardholders. Currently, it is the second-largest credit card issuer in India, managing over 1.79 crore active credit cards. Since its inception, SBI Cards has leveraged SBI’s trusted brand to become a reliable provider of diverse credit card products, supporting cashless and digital transactions in India. The company’s growth has been notable, achieving higher-than-market expansion in terms of credit card numbers and spend. Between March 2017 and March 2019, its credit card spends grew at a CAGR of 54.2%, outpacing the overall industry’s growth. This success is attributed to India’s economic and demographic trends, such as rising incomes, increasing consumer demand, and e-commerce expansion. With a robust customer acquisition network, SBI Cards utilizes over 32,000 outsourced sales personnel in 145 cities, operating through physical outlets and digital channels, including its website and mobile app. SBI Cards also benefits from SBI’s network, accessing its vast customer base via 21,961 branches, enhancing its reach. SBI Cards has established a robust position in India’s credit card market by diversifying its products, expanding partnerships, and leveraging SBI’s brand and network. The company’s forward momentum continues with its focus on digital expansion and innovative offerings tailored to India’s evolving consumer needs.
Industry Outlook
India’s credit card industry is experiencing rapid growth, driven by digital adoption, increased consumer spending, and favourable economic conditions. The value of credit card transactions is expected to reach INR 51.72 trillion by FY 2027, growing at a CAGR of 39.22% since FY 2022, while transaction volumes are anticipated to grow at a CAGR of 26.43%. This growth aligns with a broader shift toward cashless payments, supported by rising incomes, urbanization, and the integration of digital financial services. Technological advancements like fintech innovations, co-branded cards, and improved digital infrastructure—particularly Unified Payments Interface (UPI) and contactless payment technology—are further encouraging credit card adoption. Although digital wallets and UPI present strong competition, credit cards maintain a unique advantage with benefits such as reward programs and EMI options, appealing to consumers seeking flexible credit. SBI Cards is well-positioned to capitalize on these trends, focusing on expanding its RuPay network for UPI-linked credit transactions, which now make up approximately 10% of its card portfolio. Additionally, it is leveraging partnerships, launching new products, and utilizing a broad customer acquisition network across digital and physical channels. This approach aligns SBI Cards with shifting demographics and rising demand for credit services, solidifying its position in the expanding credit card market.
Business Segments
SBI Cards and Payment Services operates primarily in two business Segments.
• Credit Card Issuance: The core of SBI Cards’ business involves issuing credit cards tailored to a diverse customer base, from first-time users to premium customers. This segment offers value-added products ranging from lifestyle and cashback cards to co-branded options with partners across industries like travel, fuel, and retail. The company continues to expand its digital footprint and strengthen partnerships with networks such as RuPay for UPI credit transactions, aiming to adapt to the evolving digital payment landscape.
• Corporate Insurance Agency Services: SBI Cards also serves as a corporate insurance agent, providing policies to cardholders. Although a smaller segment compared to credit card services, it offers a complementary revenue stream by cross-selling insurance products, such as health and accident coverage, tailored to cardholders’ needs.
• These segments allow SBI Cards to capture a broader customer base through a mix of financial and insurance services, supporting its growth strategy in India’s expanding credit market
Key Subsidiaries and Their Information
SBI Cards and Payment Services Limited, a subsidiary of the State Bank of India (SBI), specializes in credit card services across India, serving both individual and corporate clients. Benefiting from SBI’s broad network and strong brand presence, SBI Cards has access to a large customer base, allowing it to deliver customized credit card solutions for a range of needs.
For individual users, SBI Cards offers a variety of retail credit cards, including co-branded cards in partnership with brands like IRCTC and Tata. These co-branded options provide customers with targeted rewards, such as travel benefits and retail discounts, which appeal to various spending preferences.
In the corporate segment, SBI Cards supports businesses with business credit cards designed to manage expenses efficiently. These corporate cards come with features such as customizable credit limits, travel perks, and expense tracking tools, making them highly suitable for companies with frequent business-related spending.
Q2 FY25 Highlights
Total Revenue increased by 8% year-over-year to ₹4,556 crore from ₹4,221 crore in Q2 FY24, indicating a stable expansion in revenue streams, possibly due to higher transaction volumes and credit card adoption.
Profit After Tax (PAT) declined sharply, falling to ₹404 crore from ₹603 crore in Q2 FY24, suggesting higher operational or credit-related costs.
Return on Average Assets (ROAA) decreased to 2.7% from 4.9% in the previous year, while Return on Average Equity (ROAE) dropped to 12.5% from 22.3%, pointing to reduced profitability and efficiency in asset and equity returns.
Capital Adequacy Ratio (CAR) remains robust at 22.1%, with Tier 1 at 16.3%, ensuring compliance with regulatory standards and providing a cushion for credit risk.
Cards-in-Force saw a 10% YoY growth, reaching 1.96 crore as of Q2 FY25 compared to 1.79 crore in Q2 FY24, indicating successful customer acquisition and retention.
Market Share for Cards-in-Force stands at 18.5% (down from 19.2%) and for spending at 15.7% (down from 18.0%), yet SBI Cards holds its position as 2nd in Cards-in-Force and 3rd in spending across the industry.
Credit Card Receivables grew by 23% YoY to ₹55,601 crore in Q2 FY25 from ₹45,078 crore in Q2 FY24, indicating increased credit usage or delayed repayments.
Customer Spending rose by 3% YoY, reaching ₹81,893 crore versus ₹79,164 crore in the previous year, showing stable customer spending despite modest growth influenced by economic conditions.
Financial Summary
INR in Cr.
Q2FY25
Q1FY25
Q2FY24
Q-o-Q(%)
Y-o-Y(%)
Interest Income
2,290
2,243
1,902
2.10%
20.40%
Non-Interest Income (Fees, Commission Income & Others)
Dixon Technologies (India) Ltd. is one of India’s leading electronics manufacturing services (EMS) companies, known for its end-to-end manufacturing capabilities across multiple consumer electronics and appliances segments. Founded in 1993 and headquartered in Noida, Uttar Pradesh, Dixon has grown rapidly to become a significant player in the Indian EMS space, benefiting from strong partnerships with major domestic and global brands like Samsung, Panasonic, Philips, Xiaomi and others. The company’s strategic expansion and competitive manufacturing capabilities make it a key player in the Indian EMS sector.
Industry Outlook
At present, the potential growth of the electronics market is expected to reach USD 3 trillion by 2047; including exports worth approximately USD 100 Billion presents a significant opportunity. The Electronics industry in India is now positioned at an inflexion point with the country planning an Rs 440 billion boost to become an electronics powerhouse. The industry manufacturing capacity will increase to fulfil excess demand.
Segmental Information
Consumer Electronics: This is one of Dixon’s largest segments, focused on manufacturing LED TVs for both domestic and international brands. Dixon has established partnerships with prominent brands and provides a wide range of screen sizes and display technologies.
Mobile & EMS: Dixon provides mobile phone assembly and electronics manufacturing services for both feature phones and smartphones. It is involved in end-to-end manufacturing, from component assembly to quality testing, serving major domestic and international smartphone brands.
Home Appliances: Dixon produces home appliances like washing machines, primarily focused on semi-automatic models. The company has established partnerships with well-known appliance brands and continues to expand its offerings in response to growing demand in the Indian market.
Lighting Products: Dixon manufactures LED bulbs, tube lights, down lighters, and other lighting products. It caters to leading brands in the lighting industry, benefiting from increasing demand for energy-efficient lighting solutions in both residential and commercial spaces.
Quarterly Highlights
Revenue for Q2 FY25 is Rs 11,528 crores, a growth of 133% YoY from Rs 4944 crores.
EBITDA for this quarter is Rs 420 crores, up by 110% YoY from Rs 200 crores in Q2 FY24.
Net Profit of Rs 412 crores, a significant rise of 264% YoY, including a fair value gain of Rs 210 crores from a 6.5% stake in Aditya Infotech Ltd.
Business Highlights
Revenue from mobile segment is Rs 9444 crores and acquired Ismartu on August 13, 2024, contributing approx. Rs 1100 crores in revenue from selling 8 lakhs smartphones in Q2.
Consumer electronics revenue was Rs 1412 crores and refrigerators contributed Rs 188 crores to revenue with 90% capacity utilization.
Home Appliances has revenue of Rs 444 crores with monthly run rate of 30,000 units for automatic washing machines. A new R&D center established in Noida for display devices.
Management is expecting a seasonal impact on sales post-Diwali, but will recover by start of Q4 FY25. And LED TV segment is facing some pricing pressure, with noted decline in overall industry volumes.
The Patanjali Group, founded by Baba Ramdev and Acharya Balkrishna, is a prominent Indian conglomerate known for its focus on natural, Ayurvedic, and wellness-oriented products. Initially centered on Ayurveda and herbal health, the group rapidly expanded into diverse sectors, including FMCG, healthcare, food products, personal care, and education. Key brands like Patanjali Ayurved and Patanjali Foods offer a wide range of products, from food items and supplements to cosmetics and home care products. With a mission to promote traditional Indian medicine and healthy living, the Patanjali Group has become a household name, emphasizing quality, affordability, and a focus on sustainable practices. Incorporated in 1986, Patanjali Foods Limited is a leading FMCG company in India, known for its presence across edible oils, food & FMCG, and wind power generation sectors. Originally known as Ruchi Soya Industries Limited, the company has established a strong portfolio of brands, including Patanjali, Ruchi Gold, and Nutrela, offering products at various price points to meet diverse consumer needs. Patanjali Foods is engaged in processing oil seeds, refining crude oil, and producing a variety of food products, such as biscuits and nutraceuticals. It also has a significant focus on renewable energy with wind power generation operations and maintains an extensive network of manufacturing plants across India.
Industry Outlook
For FY25, the industry outlook for Patanjali Foods appears promising, driven by growth in the FMCG and health foods sectors, a rising demand for natural and organic products, and increasing health consciousness among Indian consumers. The edible oil segment, a major contributor to Patanjali Foods’ revenue, is expected to grow due to increased consumption and demand for healthier oil alternatives. The health and wellness segment, particularly nutraceuticals, is also gaining momentum as consumers prioritize immunity and preventive health.
According to recent market reports, the FMCG sector in India is projected to grow at a compound annual growth rate (CAGR) of around 12-14% through 2025. The edible oils market, specifically, may see a CAGR of 9-10%, while the nutraceutical segment, where Patanjali Foods is expanding, is estimated to grow at a CAGR of 15-17%.
These growth rates align with Patanjali Foods’ strategy to diversify its product portfolio and increase its market share across segments. With its focus on affordable, natural, and Ayurvedic products, Patanjali Foods is well-positioned to benefit from these industry trends in FY25.
Business Segments
Patanjali Foods operates in two main business segments: Edible Oils and Food
& FMCG.
Edible Oils: This segment is the largest contributor, accounting for
approximately three-fourths of Patanjali Foods’ total revenue. In Q2 FY25,
the Edible Oils segment experienced a 10% increase in revenue, reaching
₹5,939 crore, largely supported by stable demand. Branded edible oils played
a significant role, contributing nearly 74% to this segment’s revenue. This
steady demand helped drive the overall revenue for the company to
₹8,154 crore for the quarter, reflecting an overall growth of about 4%
compared to the previous year.
Food & FMCG: The Food and FMCG segment, though smaller, accounted for around 25% of the total revenue in Q2 FY25. However, the segment faced challenges, with a 7% decline in revenue, attributed to sluggish demand in the broader industry. Despite this, staples like rice, pulses, and wheat performed better, with sales reaching ₹1,032 crore. The segment’s EBITDA for Q2 FY25 was ₹234 crore, reflecting some impact from the softer demand for other FMCG products.
Wind power generation: Although smaller in scale, this segment generated revenue of ₹14 crore, showcasing Patanjali Foods’ commitment to sustainable energy by fulfilling 20% of its energy needs through renewable sources.
Key Subsidiaries and Their Information
Patanjali Foods Limited has several key subsidiaries that enhance its operations and product offerings, particularly in the FMCG sector and edible oils. Here are the main subsidiaries as of FY25:
Ruchi Soya Industries Limited: This is one of the largest subsidiaries, focusing on edible oils and food products. It significantly contributes to Patanjali Foods’ revenue through its various brands, including Ruchi Gold and Nutrela. Following its acquisition by Patanjali in 2021, Ruchi Soya has been integral to the company’s operations.
Patanjali Ayurved Limited: This subsidiary plays a crucial role in providing a range of Ayurvedic and herbal products. Patanjali Foods has expanded its FMCG offerings by acquiring the food business from Patanjali Ayurved, which includes a variety of consumer-focused products.
Patanjali Natural Biscuits Private Limited: This subsidiary is involved in the production of biscuits and snacks, further diversifying Patanjali’s product range in the FMCG sector.
Patanjali Wind Energy Private Limited: Engaged in wind power generation, this subsidiary contributes to the company’s sustainability efforts by utilizing renewable energy sources. In Q2 FY25, it generated revenue of ₹14 crore from this segment.
Q2 FY25 Highlights
In Q2 FY25, Patanjali Foods Limited reported robust performance despite a challenging environment in both the Food & FMCG and Edible Oils segments. The company’s revenue from operations reached ₹8,154.19 crore, marking a 4.25% year-on-year (YoY) growth.
Patanjali Foods achieved its highest-ever EBITDA of ₹493.86 crore, reflecting a 17.81% YoY improvement. The EBITDA margin also expanded by 70 basis points to 6.06%.
Gross profit rose significantly from ₹1,021.26 crore to ₹1,292.81 crore, primarily due to favorable pricing scenarios in the market. The PAT increased by 21.38% YoY to ₹308.97 crore, with a corresponding margin improvement of 53 basis points.
There has been a noticeable shift in consumer preferences from traditional General Trade channels to modern trade, e-commerce, and quick commerce, leading to higher inventory levels among traditional partners. The company exported products to 21 countries, generating ₹34.55 crore in revenue from exports during the quarter.
The wind turbine power generation segment contributed ₹14.35 crore in revenue, with the company sourcing approximately 20% of its energy needs from renewable sources.
During the quarter, Patanjali Foods significantly increased its advertising and sales promotion expenses, surpassing ₹130 crore, which brought the total for H1 FY25 to over ₹185 crore. The company launched various marketing campaigns across print, social media, TV, and radio, promoting specific products. Notably, celebrities such as Shilpa Shetty, Shahid Kapoor, and Khesari Lal Yadav were engaged to endorse Nutrela-branded soya chunks, edible oils, and nutraceuticals, respectively.
In addition to celebrity endorsements, Patanjali initiated the Rural Connect Program and Nutrela Operation Thunder to enhance brand visibility and distribution in rural, underserved markets. The brand also collaborated with popular YouTube channels like Rajshri Foods and Get Curried, featuring star chefs who showcased enticing recipes using Nutrela product.
Financial Summary
INR in Cr.
Q2 FY25
Q1FY25
Q2FY24
Q-o-Q Growth
Y-o-Y Growth
Total Revenue
8154
7173
7822
13.68%
4.25%
Selling/ General/ Admin Expenses Total
130
117
91
10.94%
43.59%
Depreciation/ Amortization
56
57
60
-0.90%
-6.07%
Total Operating Expense
7762
6824
7487
13.73%
3.67%
Operating Income
393
349
335
12.63%
17.15%
Profit Before Tax
417
359
335
16.13%
24.42%
Profit After Tax
309
263
255
17.46%
21.23%
Diluted Normalized EPS
8.53
7.26
7.03
17.49%
21.34%
SWOT Analysis
Strengths:
Wide range of products
Strong brand reputation
Extensive reach in both rural and urban areas
Solid financial performance
Weaknesses:
Heavy reliance on edible oils
Limited international presence
High costs of raw materials
Opportunities:
Rising consumer interest in health and wellness products
Growth in online and modern retail channels
Potential to expand into underserved rural markets
Zomato ltd. is a leading Indian online food delivery and restaurant discovery platform with a market capitalization of Rs 200,000+ crore. Founded in 2008, Zomato has grown to become one of India’s most prominent food-tech companies, connecting millions of users with restaurants and delivery services across the country. It has over 17 million monthly active users all over world and 300,000+ delivery personnel. In 2022, Zomato acquired Blinkit as a subsidiary for approx. Rs 4440 crore. It specializes in quick commerce for fast delivering groceries, etc.
Industry Outlook
The Indian e-commerce food delivery industry is poised for strong growth in FY25, driven by increasing consumer demand, digital adoption, and expansion into Tier 2 and Tier 3 cities. Indian food delivery market is expected to grow at a CAGR of 18-20% over the next few years, reaching an estimated ₹1 trillion by FY25. This trend is expected to continue, with more people opting for the convenience of ordering in.
Segmental Information
Food Delivery: It is a food ordering and delivery platform where customers can search and discover local restaurants, order food, and have it delivered reliably and quickly and it is a core segment of this company.
Quick Commerce: It offers a quick delivery services to its customers for various categories of products like stationery, fruits, foods, merchandise, electronics item, etc. in delivery time of 15 minutes. And it has acquired a subsidiary called Blinkit, which handles this segment for Zomato.
Going Out: This segment is a combination of Dining out & ticketing platform where it offers customers to discover a restaurant and reserve it for them and customers can book tickets also for movies or any live shows, etc.
B2B Supply:The B2B business (Hyper pure) is that, supplying quality food ingredients and other products to restaurants and other B2B buyers.
Q2 FY25 Highlights
Bottom line (EBITDA) continued to improve steadily and Quick commerce business is now near a break-even point.
The new District app for going-out business will be live soon in Q3.
Zomato had average monthly of 20.7 million customers, 292,000 restaurant partners and 500000 delivery partners.
Subsidiary- Blinkit
It had revenue of Rs 1156 crore compared to 942 crore in Q2FY24, a growth of 129% YoY.
EBITDA was at break-even level of Rs -8 crore in Q2 FY25 which was Rs -125 crore a year back. Shows a good sign.
GOV for quick commerce business was Rs 6132 crore and orders for Q2 FY25 were 92.9 million and its average order value is Rs 660, as it offer low price products for daily use and fast delivery.
The total stores for Blinkit till Q2 are 791 stores and 152 stores were added during this quarter only.
The GOV per day, per store comes around Rs 981,000 for this quarter.
SWOT Analysis of Zomato
Strengths:
Diverse revenue streams that enhance financial stability.
Robust financial backing from investors, enabling expansion.
Extensive user base, driving consistent engagement.
Weaknesses:
High operating expenses impacting profitability.
Intense competitive pressure from other food delivery services.
Limited international market presence hindering global growth.
Opportunities:
Expansion potential in Tier 2 and Tier 3 cities.
Opportunities for partnerships with cloud kitchens to diversify offerings.
Growing potential for subscription model services to boost customer loyalty.
Threats:
Increasing competition in the food delivery industry.
Challenges in consumer retention amidst evolving market dynamics.
Regulatory risks that could affect operational strategies.
Persistent Systems, incorporated in 1990, is a global software and technology services company specializing in product engineering and digital transformation. The company has demonstrated expertise in emerging technologies, focusing on IoT products, platform development, and strategic partnerships with leading product companies. With a strong presence across sectors like industrial machinery, healthcare, Smart City, and smart agriculture, Persistent delivers solutions that span the entire product lifecycle. In its recent quarter, the company reported $345 million in revenue, marking 18.4% year-on-year growth and 5.3% sequential growth, with key contributions from Healthcare and Life Sciences (up 71.2%) and BFSI (up 15.3%). Persistent continues to drive growth, leveraging advanced technologies like AI and maintaining 18 consecutive quarters of growth.
Industry Outlook
The outlook for the IT sector in FY25 looks promising, with macroeconomic headwinds expected to subside, leading to improved earnings visibility. After outperforming the Nifty in the previous year, the IT sector is likely to maintain its momentum, benefiting from a lower base and easing headwinds. For Persistent Systems (PSL), the company is well-positioned to seize growth opportunities in digital technologies, thanks to its strong product development capabilities and early recognition of digital trends. Management is optimistic about achieving industry-leading revenue growth in FY24, driven by broad-based demand across various sectors, robust deal bookings, new client additions, and incremental revenue from acquisitions. PSL’s leadership in outsourced product development, long-standing client relationships, and end-to-end service offerings position it to capitalize on emerging opportunities effectively. With a strong presence in North America, Europe, and other regions, Persistent is expected to benefit from global digital transformation trends. Its focus on capability-led acquisitions, particularly in Europe, may help it capture new opportunities in consolidating markets. Persistent aims to maintain industry-leading growth while optimizing margins by 200–300 basis points. Its focus on scaling advanced services, such as AI, and leveraging its robust pipeline suggests a strong performance in FY25.
Business Segments
Healthcare and Life Sciences:
This segment has experienced significant growth, with a year-on-year increase of 71.2%.
The growth is driven by expanding digital transformation initiatives in healthcare, including IoT applications and data analytics.
Banking, Financial Services, and Insurance (BFSI):
The BFSI sector recorded a 15.3% year-on-year growth. Persistent’s focus on AI adoption and digital services in financial operations is enhancing customer experience and operational efficiency.
Technology and High-Tech:
Although growth in this segment has been relatively slower, management expects an uptick in the next few quarters as demand increases. Investments in innovative technologies and strategic partnerships are expected to drive future growth.
Key Subsidiaries and Their Information
Persistent Systems has multiple wholly owned subsidiaries, with presence in over 20 countries.
Persistent Systems Inc.:
This North American subsidiary plays a critical role in driving growth, especially in the healthcare and BFSI sectors. The company is focusing on enhancing its digital offerings and has been successful in securing large deals.
Persistent Systems UK:
Focused on the European market, this subsidiary has been pivotal in expanding Persistent’s presence in Europe. It emphasizes product engineering and digital transformation services, catering to various industries, including automotive and finance.
Acquisitions and Partnerships:
Persistent has made several acquisitions to bolster its technology stack. For instance, the acquisition of MetaLogix has strengthened its capabilities in data management and analytics. Partnerships with leading technology companies enhance its service offerings, particularly in AI and cloud services.
Focus on Emerging Technologies:
Persistent’s subsidiaries are investing in emerging technologies like IoT, AI, and blockchain to enhance their service offerings and provide innovative solutions to clients. The company employs a global delivery model that leverages talent from various regions, ensuring cost efficiency and high-quality service delivery. With macroeconomic challenges easing and increased demand for digital transformation services, subsidiaries of Persistent Systems are well-positioned for sustained growth. The management is optimistic about capturing a larger market share in the digital services landscape, particularly with their strong track record in OPD.
Q2 FY25 Highlights
Revenue growth: PSL reported $345.5 million in revenues, up 5.1% q-o-q in constant currency (CC) terms beating our estimates of $342 million. Revenue in USD terms was up 5.6% q-o-q/18.4% y-oy while revenue in rupee terms stood at Rs. 2,897 crores, up 5.8% q-o-q/20.1% y-o-y. Growth was led by Healthcare & Lifesciences and BFSI verticals. Persistent reiterated its aspiration to achieve $ 2 billion revenue target by FY27. Management would endeavor to maintain utilization at 83-85%.
EBIT margins: EBIT margins was flat q-o-q at 14% slightly beating our estimates of 13.9%. Margin headwinds comprising of wage hike (-210 bps), absence of policy rationalization present in Q1 (-130 bps), Incremental impact of fresh ESOP issuance in Q2(-60 bps) and lower earnout credit (-60 bps) was neutralized by margin tailwinds comprising of Utilization (+120 bps), Sub contractor cost reduction (+70 bps), lower resale business (+50 bps), Pricing and right shoring (+130 bps), favorable currency (+30 bps) and absence of H-1B visa cost (+60 bps).
Order bookings: In the latest performance metrics, Persistent Systems reported a Total Contract Value (TCV) of $529 million, reflecting a 14% increase quarter-over-quarter (q-o-q) and a 10% increase year-over-year (y-o-y). The company achieved a book-to-bill ratio of 1.5x, up from 1.4x in Q1 FY25. New Business TCVs were particularly strong, reaching $389.8 million, which marks a 25% increase q-o-q and a 24% increase y-o-y. The Annual Contract Value (ACV) totaled $348.3 million, showing a modest 3% increase q-o-q and a more robust 10% increase y-o-y. Additionally, New Business ACV reached $218.6 million, reflecting a 10% increase q-o-q and a 19% increase y-o-y. These figures indicate a healthy growth trajectory for Persistent Systems, driven by strong demand and successful business strategies
Top clients & Client additions: Revenue from the top-5 clients, top-10 clients, top-20 clients, and top-50 clients grew 7.7%/ 5.3%/5.7%, and 5.4% q-o-q, respectively. Persistent added two clients in the $10mn+ and four clients in the $1mn+ revenue category sequentially.
Headcount & attrition: Net headcount additions declined by 282, taking total headcount to 23,130. TTM attrition inched up by 10 bps q-o-q to 12%. However, utilization improved 270 bps q-o-q to 84.8%.
Cash generation & DSO: Cash & investments stood at Rs 1791.6 crore, down 6.2% q-o-q. DSO stood at 68 from 67 in Q1FY25. Operating cash flows to PAT for Q2FY25 was 108.3% compared to 49.3% Q1FY25.
SWOT Analysis of Persistent Systems: Key Insights for Strategic Growth
Strengths:
Expertise in Digital Transformation – Persistent Systems excels in cutting-edge digital transformation services, providing a strong competitive edge.
Consistent Growth – The company has demonstrated steady revenue growth, reinforcing its position in the global market.
Robust Deal Wins – Regular success in securing high-value contracts underscores its reliability and industry relevance.
Global Presence – A well-established presence across North America, Europe, and other key regions, giving it a broad market reach.
Weaknesses:
Dependence on BFSI and Healthcare – Heavy reliance on these sectors may limit diversification, posing a potential risk in times of industry slowdown.
Smaller Size – Compared to some industry giants, Persistent Systems operates at a smaller scale, which may impact market dominance.
Flat Margins – Margins have remained relatively stagnant, highlighting the need for cost optimization and efficiency improvements.
Integration Challenges from Acquisitions – Ongoing acquisitions pose potential hurdles in seamless integration, impacting short-term operational efficiency.
Opportunities:
Rising Demand for AI and Digital Transformation – The increasing adoption of AI and digital services presents lucrative growth opportunities.
Healthcare and BFSI Expansion – Expanding its footprint in the rapidly growing healthcare and BFSI sectors can drive significant revenue.
Focus on Cloud and IoT Solutions – With businesses globally shifting to cloud and IoT platforms, Persistent is well-positioned to capitalize on this trend.
European Expansion – The company’s increasing focus on Europe offers new market opportunities, especially in digital transformation and engineering services.
Threats:
Global Economic Uncertainty – Economic fluctuations could negatively impact client spending and growth projections.
Competition from Industry Leaders – Larger competitors with greater resources and market share could pose a threat to Persistent’s expansion efforts.
Currency Fluctuations – Persistent’s global operations expose it to currency exchange risks that could affect profitability.
Cybersecurity Threats – As digital services grow, so do cybersecurity risks, requiring constant vigilance and investment to safeguard client data.
L&T Finance Holdings, part of the Larsen & Toubro Group, is a key player in India’s financial sector, offering a wide range of services across rural, housing, and infrastructure finance. Through its subsidiaries, it provides products like microfinance, two-wheeler loans, farm equipment finance, and home loans. The company is also involved in financing large-scale infrastructure projects.
L &T Finance emphasizes digital transformation, using data analytics and AI to enhance customer experience and streamline operations. It has adopted a strong Environmental, Social, and Governance (ESG) framework, ensuring sustainable business practices. In recent years, it has improved asset quality by reducing non-performing assets (NPAs) and focusing on cost optimization. With a focus on retail and rural finance, L&T Finance is committed to long-term, responsible growth in India’s financial ecosystem.
Industry Outlook
India’s economy is projected to grow by 7% in FY25, driven by strong private consumption and credit demand. This growth is set to significantly boost the financial sector, particularly non-bank financial companies (NBFCs), which are expected to see increased profitability despite higher funding costs. Credit demand is likely to expand, especially in infrastructure, housing, and microfinance sectors, with NBFC loan growth projected to increase by 15%, fueled by strong performance in key consumption areas. Infrastructure lending is poised for substantial growth due to large investments in energy and urban development. L&T Finance plans to expand its infrastructure portfolio by over 20% to capitalize on these opportunities. Additionally, the company is focused on improving asset quality, aiming to reduce its Gross Non-Performing Assets (NPAs) to below 3.0%, down from 3.1% in FY24. L&T Finance is also expected to enhance its sustainability efforts by increasing its allocation towards ESG projects.
Business Segments
Rural Finance: This includes microfinance, farm equipment finance, and two-wheeler loans, primarily catering to rural consumers. It plays a key role in driving financial inclusion in India’s rural economy.
Retail Finance: L&T Finance offers home loans, loans against property, and other personal loans, targeting individual consumers in urban and semi-urban areas.
Infrastructure Finance: The company has a significant presence in financing large-scale infrastructure projects, such as energy, transportation, and urban development, supporting India’s infrastructure growth.
Mutual Funds and Wealth Management: Through L&T Investment Management, the company manages a wide range of mutual funds and wealth management products for retail and institutional investors.
Q2 FY25 Highlights
L&T Finance reported a Profit After Tax (PAT) of ₹696 crore, reflecting a 17% increase compared to the previous year. This growth is a strong indicator of the company’s profitability and overall financial health.
The company maintained a stable Return on Assets (RoA) at 2.60%, up 18 basis points year-over-year. With 96% of its loan book now in retail financing, it is advancing its “retailization” strategy to reduce corporate loan dependence and improve asset quality.
L&T Finance’s retail loan portfolio grew 28% YoY to ₹88,975 crore, driven by strong demand for home loans, vehicle financing, and microfinance. The consolidated book grew 18% YoY, the highest since Q1FY20.
L&T Finance improved its Net Interest Margin (NIM) to 8.94%, up by 32 bps YoY, while reducing its Weighted Average Cost of Borrowings (WACB) to 7.80%, down by 5 bps. Credit cost remained stable at 2.59%, and the collection efficiency for the rural segment stood at 99.45%.
Hyundai Motor India Limited (HMIL) is set to launch its Initial Public Offering (IPO) with a total issue size of ₹27,870.16 crores. This significant offering comprises an offer for sale of 14.22 crore shares, marking one of the most anticipated IPOs in the Indian primary market.
IPO Subscription Period
Open Date: October 15, 2024
Close Date: October 17, 2024
Allotment Date: October 18, 2024
Listing Date: October 22, 2024 (Tentative)
Stock Exchanges: BSE and NSE
Pricing and Lot Details
Price Band: ₹1,865 – ₹1,960 per share
Face Value: ₹10 per share
Minimum Lot Size: 7 shares
Investment Requirements:
Retail Investors: Minimum ₹13,720 (7 shares)
Small Non-Institutional Investors (sNII): 15 lots (105 shares) – ₹205,800
Big Non-Institutional Investors (bNII): 73 lots (511 shares) – ₹1,001,560
Reservation Structure
The Hyundai Motor IPO reserves shares across various investor categories to ensure broad participation:
Shares Credited to Demat: Monday, October 21, 2024
Listing Date: Tuesday, October 22, 2024
UPI Mandate Cut-off: 5 PM on October 17, 2024
Book Running Lead Managers
Hyundai Motor India Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
Kotak Mahindra Capital Company Limited
Citigroup Global Markets India Private Limited
HSBC Securities & Capital Markets Pvt Ltd
J.P. Morgan India Private Limited
Morgan Stanley India Company Pvt Ltd
Kfin Technologies Limited has been designated as the registrar for the IPO.
Promoter Information
Promoter: Hyundai Motor Company
Shareholding:
Pre-Issue: 100%
Post-Issue: 82.50%
About Hyundai Motor India Limited
Established in May 1996, Hyundai Motor India Limited is a subsidiary of the Hyundai Motor Group, the world’s third-largest automotive OEM by passenger vehicle sales. HMIL manufactures and markets a wide range of vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs), supported by a robust network of 1,366 sales points and 1,550 service centers across India.
Key Models:
Grand i10 NIOS
i20 & i20 N Line
AURA
Elantra
Venue & Venue N Line
Verna
Creta & Creta N Line
Alcazar
Tucson
Ioniq 5 (All-Electric SUV)
HMIL’s manufacturing facility near Chennai is pivotal in producing its comprehensive vehicle lineup, catering to both domestic and international markets, including Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.
Financial Highlights
Revenue Growth: Increased by 16% from ₹61,436.64 crores (FY 2023) to ₹71,302.33 crores (FY 2024)
Profit After Tax (PAT): Rose by 29%, reaching ₹6,060.04 crores in FY 2024
Net Worth: ₹12,148.71 crores
Total Borrowing: ₹758.14 crores
Key Performance Indicators (KPIs):
ROCE: 13.69%
RoNW: 12.26%
P/BV: 14.93
EPS (Pre-IPO): ₹74.58
EPS (Post-IPO): ₹73.33
P/E Ratio (Pre-IPO): 26.28x
P/E Ratio (Post-IPO): 26.73x
IPO Objectives
Hyundai Motor India Limited will not receive any proceeds from the IPO. Instead, the promoter-selling shareholders will receive the Offer Proceeds after deducting offer-related expenses and applicable taxes.
Subscription Status (As of October 15, 2024, 7:02:07 PM)
Overall Subscription: 0.18x
Retail: 0.27x
QIB: 0.05x
NII: 0.13x
Employee Category: 0.81x
Total Applications Received: 9,89,91,410 for 1,80,50,557 shares bid.
Recommendation: Apply. The Hyundai Motor India Limited (HMIL) IPO offers strong growth potential due to its market leadership, solid financials, and strategic expansion into electric vehicles (EVs). Backed by the globally renowned Hyundai Motor Group, and with a robust outlook for future growth, this IPO presents an attractive opportunity for long-term investors, especially those looking for exposure to the automotive and EV sectors. Despite the slightly high P/E ratio, the company’s consistent performance and future plans make it a promising investment.
Company Overview Just Dial Ltd., founded on December 20, 1993, in Mumbai, India, is led by CEO Venkatachalam Sthanu Mani. As a key player in the Technology Services sector, particularly in Internet Software/Services, Just Dial is a leading local search engine in India. It offers comprehensive search services via website, mobile app, phone, and SMS, helping users find businesses, products, and services.
The latest JD App integrates features like Map-aided Search, Live TV, and Stock Quotes, making daily tasks easier. Just Dial also provides services such as bill payments and travel bookings, generating revenue through search services, transaction commissions, and certifications.
The Internet Software and Services industry is growing rapidly due to increased internet use, digital transformation, and the shift to online platforms. Companies like Just Dial are well-positioned as more people rely on digital tools to find local businesses and services. The industry is being reshaped by emerging technologies like AI and automation, enhancing user experiences and operational efficiency. With a focus on mobile apps and personalized solutions, businesses are catering to the rising smartphone user base. As digital adoption spreads, especially in rural areas, localized search services are expected to thrive, driving further growth and innovation in the industry.
Business Segments:
Local Search Services: Users can discover businesses, products, and services via website, app, and SMS.
Transaction Services: Includes bill payments, travel bookings, and online transactions.
Rating Certifications: Business rating and certification services.
Website Creation & Digital Marketing: Offers website building and marketing solutions.
Revenue Streams: Search-related services, service certifications, and transaction commissions.
Earnings Report:
Q1 Results:
Net Profit: ₹141 crore
Revenue: ₹281 crore
Operating Expenses: ₹214 crore
Profit Before Tax (PBT): ₹154 crore
Q2 Results:
Net Profit: ₹154 crore (9% increase from Q1)
Revenue: ₹285 crore
Operating Expenses: ₹217 crore
Profit Before Tax (PBT): ₹182 crore
Summary: Strong financial performance with growth in net profit and revenue from Q1 to Q2.
Financial Summary
Just Dial’s financial performance has shown significant growth over the recent quarters. In Q1, the company achieved a net profit of ₹141 crore with revenue of ₹281 crore, accompanied by operating expenses of ₹214 crore and a Profit Before Tax (PBT) of ₹154 crore.
By Q2, Just Dial reported a net profit of ₹154 crore, marking a 9% increase from the previous quarter. Revenue rose to ₹285 crore, with operating expenses slightly higher at ₹217 crore. The PBT for Q2 reached ₹182 crore, reflecting the company’s robust financial health and effective cost management strategies.
Performance Overview:
Just Dial Ltd. delivered a strong performance in Q2 FY25, with significant growth across key financial metrics. The company’s net profit surged by 114% year-over-year, reaching ₹154 crore, driven by efficient cost management and rising revenue. Revenue from operations grew by 9%, totaling ₹285 crore, reflecting sustained demand for its digital solutions. The company also reported a 25% increase in total income and a 98% rise in profit before tax, signaling robust profitability. With strategic investments in technology and a growing user base, Just Dial continues to strengthen its position in the market.
Debt and Coverage:
Just Dial Ltd. maintains a healthy financial position with manageable debt levels.
Debt: ₹2.80B (2023), up from ₹700M (2020)
Free Cash Flow: ₹64B
Cash Reserves: ₹48B
Strong debt coverage ensures financial stability and growth.
Stock Performance: Just Dial’s stock has shown impressive growth, with a 2.96% increase on the BSE to ₹1,307.10 after its Q2 FY25 report and a 7% surge on the NSE to ₹1,359. Over the past year, the stock delivered a 76.10% return, with a 5-year growth of 110.43%. Its market cap stands at ₹100.10 billion, reflecting investor confidence.
SWOT Analysis: Strengths: Strong brand, profit growth, AI investments. Weaknesses: Limited global presence, rising debt. Opportunities: B2B expansion, AI integration. Threats: Intense competition, market dependency.
Conclusion:
In conclusion, Just Dial Ltd.’s Q2 FY25 performance highlights its strong market position and effective cost management, evidenced by significant profit and revenue growth. With strategic investments in technology and a focus on B2B expansion, Just Dial is well-positioned for continued success and value creation for stakeholders.
