Archives 2025

Dixon Technologies Q3 Earnings
Dixon Technologies Q3 Earnings: Pioneering India’s Electronics Manufacturing Revolution

Dixon Technologies Ltd: Overview 

Dixon Technologies (India) Limited, established in 1993, is a leading Electronics Manufacturing Services (EMS) provider in India, operating across segments like consumer electronics, lighting, home appliances, CCTVs, mobile phones, and reverse logistics. It also produces security surveillance equipment, wearable, audible, and AC-PCBs. The company recently formed a joint venture with Imagine Marketing Pvt Ltd. for wireless audio solutions. As one of India’s largest LED TV manufacturers, Dixon caters to over 35% of the country’s demand and is a leading ODM player in lighting with extensive capacity across SKUs. It has the largest semi-automatic washing machine portfolio with models ranging from 6 kg to 14 kg. Headquartered in Noida, Dixon has 22 manufacturing facilities across India. It plans a capital expenditure of ₹300-400 crore annually over the next two years, alongside debt repayment obligations of ₹90-110 crore per year. Notable achievements include manufacturing 11 million smartphones, 26 million feature phones, and rolling out India’s first ODM-based Google TV solutions. The EMS industry in India is poised for substantial growth, driven by rising domestic consumption, government initiatives like “Make in India” and the production-linked incentive (PLI) scheme, and the increasing shift of global manufacturing supply chains toward India. The demand for electronics across sectors such as consumer durables, telecommunications, and industrial automation has created a favourable environment for companies like Dixon. However, the industry faces challenges such as dependency on imported components and price sensitivity in the domestic market. Despite these hurdles, Dixon Technologies is well-positioned to benefit from the sector’s growth trajectory, given its strong operational capabilities, focus on backward integration, and a robust order pipeline. The company’s proactive approach to expanding its product portfolio and leveraging government support further cements its status as a leader in the Indian EMS landscape. 

Latest Stock News 

Shares of Dixon Technologies Ltd. saw a significant drop of 14% in trading on Tuesday, January 21, following analysts’ concerns over its valuation after the company’s quarterly results, which largely met expectations. This marked the largest single-day decline for the stock since January 27, 2023, when Dixon had lowered its guidance for the financial year 2024. The company reported a robust 190% growth in its core Mobile business, now accounting for nearly 90% of its total revenue. However, other aspects of the company’s performance were in line with analyst predictions. In a note, Jefferies pointed out that while the mobile production-linked incentive (PLI) scheme is set to expire in 2026, consumer electronics sales had dropped by 32% year-on-year. Goldman Sachs maintained a “sell” rating on the stock with a price target of ₹10,240, even lower than Jefferies’ estimate. Analysts at Goldman Sachs suggested that the earnings upgrade cycle for Dixon might have stalled, and with high valuations and slower growth, the stock may underperform in the near term. Dixon’s future growth is expected to stem from its focus on backward integration, particularly in the display, camera, and battery module assembly sectors. The company also plans to establish a display fab, which could enhance its control over the supply chain and transform it into a more vertically integrated electronics manufacturer. However, the success of these initiatives depends heavily on their execution, making them a critical factor in Dixon’s ability to drive sustained growth moving forward. 

Q3 FY24 Earnings 

  • Revenue of ₹10454 crore in Q3 FY25 up by 117% YoY from ₹4818 crore in Q3 FY24.  
  • EBITDA of ₹391 crore in this quarter at a margin of 4% compared to 4% in Q3 FY24. 
  • Profit of ₹216 crore in this quarter compared to a ₹97 crore profit in Q3 FY24. 

IDBI Bank Ltd Q3 Earnings
IDBI Bank Ltd: Driving Growth and Stability in India’s Banking Sector

IDBI Bank Ltd: Overview 

IDBI Bank Ltd., a prominent player in the Indian banking sector, operates as a full-service bank offering a wide range of financial products and services to retail, corporate, and small business clients. Originally established in 1964 as the Industrial Development Bank of India, it was created to support India’s industrial growth. Over the years, it transitioned into a commercial bank while retaining its developmental focus. The bank’s offerings include savings and current accounts, loans, investment products, and payment solutions, alongside specialized services like project financing and treasury operations. Now majority-owned by Life Insurance Corporation of India (LIC), IDBI Bank benefits from the backing of one of the country’s largest financial institutions, which bolsters its financial stability and brand value. With a network of branches and ATMs spread across the nation, IDBI Bank aims to serve diverse customer segments effectively, supported by digital initiatives to enhance convenience and accessibility. The Indian banking industry is poised for steady growth, driven by economic expansion, increasing digital adoption, and a rising demand for financial inclusion. The sector is seeing a significant push toward modernization, with banks focusing on technology to streamline operations and improve customer experiences. However, challenges like rising competition, non-performing assets (NPAs), and regulatory pressures remain concerns. Within this dynamic environment, IDBI Bank is strategically positioned to leverage its strong parentage, operational expertise, and evolving digital capabilities to capture emerging opportunities. Its focus on improving asset quality and expanding its retail and MSME portfolios aligns with the broader industry trend of risk management and growth diversification. 

Latest Stock News 

Asset quality for IDBI Bank remained stable on a sequential basis, with gross non-performing assets (NPA) at 3.57% compared to 3.68% in the previous year. Net NPA for the quarter stood at 0.18%, showing a slight improvement from 0.2% in the preceding quarter. In another key development, the bank’s board approved the sale of its entire holding of 8.54 lakh shares, valued at ₹100 each, in Pondicherry Industrial Promotion Development and Investment Corporation Ltd. (PIPDIC), which represents a 21.14% stake in the associate company. 

The disinvestment process for IDBI Bank is gaining traction, with financial bids for a 60.72% stake expected to be invited by the end of the current fiscal year, according to government sources. This stake sale, which includes 30.48% held by the government and 30.24% by LIC, will involve transferring management control as part of the strategic sale. The process is one of the largest disinvestment efforts in the banking sector. Before proceeding, the Reserve Bank of India (RBI) conducted a “fit and proper” assessment of the bidders, ensuring compliance with regulatory norms. 

Following RBI clearance, the government opened a data room in November to allow bidders access to IDBI Bank’s legal and financial documents. This move facilitates a thorough due diligence process, enabling bidders to evaluate the bank’s performance and request additional information as needed. With these preparations in progress, financial bids are anticipated to finalize the future ownership structure of IDBI Bank by March 2025, marking a significant milestone in its strategic sale. 

Q3 FY24 Earnings 

  • Revenue of ₹7819 crore in Q3 FY25 up by 19.4% YoY from ₹6549 crore in Q3 FY24.  
  • EBITDA of ₹1854 crore in this quarter at a margin of 24% compared to 15% in Q3 FY24. 
  • Profit of ₹1954 crore in this quarter compared to a ₹1515 crore profit in Q3 FY24. 
IRFC Ltd: Driving India’s Railway Modernization and Growth
IRFC Ltd: Driving India’s Railway Modernization and Growth

IRFC Ltd: Overview 

Indian Railway Finance Corporation Ltd. (IRFC) is the financial backbone of Indian Railways, established in 1986 to fund the modernization and growth of railway infrastructure across the country. The company focuses on raising capital for acquiring rolling stock, such as locomotives, coaches, and wagons, along with financing infrastructure projects and leasing operations essential to the Indian Railways. Operating under the Ministry of Railways, IRFC benefits from government backing, allowing it to secure low-cost finance through a mix of funding sources like bonds, term loans, and external commercial borrowings. Its strong financial stability and reliable performance make it a vital contributor to India’s railway expansion initiatives. The railway sector in India is on a rapid growth trajectory, fueled by the government’s emphasis on infrastructure upgrades, sustainability, and enhanced connectivity under programs like “Gati Shakti” and “Make in India.” With increased budget allocations, the sector is advancing toward electrification, high-speed rail development, and network expansion. As part of India’s goal to achieve carbon neutrality in railways by 2030, there is a growing need for green financing and technological modernization, areas where IRFC is set to play a critical role. While the company’s dependency on Indian Railways as its sole client may pose a risk, this is offset by the strategic importance of the railways to the nation’s economic development. With a solid financial foundation and alignment with government priorities, IRFC is well-positioned to seize the opportunities presented by the evolving railway industry. 

Latest Stock News 

Indian Railway Finance Corporation Ltd. (IRFC) announced on Tuesday, January 14, that it has been identified as the lowest bidder (L1) to finance ₹3,167 crore for the development of the Banhardih coal block, located in Latehar District, Jharkhand. The project is being executed by PVUN Ltd., a joint venture between NTPC Ltd., which holds a 74% equity stake, and Jharkhand Bijli Vitran Nigam Ltd., with a 26% stake. The Banhardih coal block, allocated to PVUNL as a captive coal source, is integral to the company’s operations, ensuring efficient coal transportation to its project site. The coal will be transported to the Chetar power station through a Mine-Gain-Rail (MGR) system and further moved using Indian Railways. Additionally, on Wednesday, January 15, IRFC announced the signing of a lease agreement with NTPC Ltd. to finance eight BOBR (Bogie Open Bottom Rapid) rakes. This investment is valued at approximately ₹250 crore, marking another step in IRFC’s ongoing commitment to supporting infrastructure and energy projects across India. 

Q3 FY25 Earnings 

  • Revenue of ₹6763 crore in Q3 FY25 up by 0.4% YoY from ₹6737 crore in Q3 FY24.  
  • EBITDA of ₹6724 crore in this quarter at a margin of 99% compared to 99% in Q3 FY24. 
  • Profit of ₹1631 crore in this quarter compared to a ₹1599 crore profit in Q3 FY24. 
Jio Financial Shares Fall 3% as Q3 Profit Remains Flat
Jio Financial Shares Fall 3% as Q3 Profit Remains Flat and Digital Growth

Jio Financial Services Ltd: Overview 

Jio Financial Services Ltd (JFSL), a strategic subsidiary of Reliance Industries Ltd, operates as a diversified financial services company, leveraging technology and innovation to redefine financial inclusion in India. JFSL’s offerings span consumer and merchant lending, asset management, insurance, and digital payments, making it a comprehensive player in the financial ecosystem. The company focuses on leveraging Reliance’s vast consumer base and digital ecosystem to deliver tailored financial solutions at scale. With its extensive reach, advanced data analytics, and partnerships, JFSL is poised to disrupt traditional financial service models, particularly in underpenetrated segments of the Indian market. India’s financial services industry is undergoing a transformative phase, driven by rising digital adoption, favourable regulatory changes, and increasing demand for inclusive financial solutions. The industry spans banking, insurance, asset management, and fintech, collectively contributing significantly to India’s GDP. The digital lending market is projected to grow at a CAGR of over 30% due to increasing consumer demand and the rising popularity of Buy Now Pay Later (BNPL) schemes. Similarly, the insurance and asset management sectors are poised for robust growth, fueled by increasing awareness, urbanization, and disposable incomes. Fintech is a key driver, with India emerging as one of the world’s largest fintech ecosystems. Regulatory support for digital banking, UPI adoption, and financial inclusion efforts further strengthen the industry’s prospects. JFSL is well-positioned to capitalize on these trends, leveraging its technological expertise and vast ecosystem to redefine financial services in India. 

Latest Stock News

Jio Financial Services shares slipped nearly 3% after the company reported a flat net profit for Q3 FY25 compared to the previous year. Despite steady profits, the company showcased significant growth in its AUM and continued expansion in digital and financial services. Jio Financial also seeks a TPAP license for its JioFinance app to enhance its offerings.

Business Segments 

  • Lending & Leasing: The initial focus is on offering secured loans aimed at both salaried and self-employed individuals, taking into account their risk profiles and business dynamics. Its product suite includes loan against mutual funds, home loan, with plans to offer loan against securities, loan against property and other secured lending products. It also provides a spectrum of financing options designed to support the operations of MSMEs and corporates. The offerings include working capital loans and supply chain finance. 
  • Insurance: In the insurance domain, JFSL is set to offer both life and non-life products, focusing on affordability and accessibility. The use of digital platforms for policy issuance, claims processing, and customer support ensures a smooth experience for consumers, particularly in underpenetrated rural and semi-urban markets. 
  • Payments: The Payments Bank has successfully operationalised liability offerings of saving account, current accounts and prepaid instruments served through both self-service and assisted channel.  The services include savings account, debit card, current account, wallet, and a host of consumer payment solutions such as UPI, Aadhaar Enabled Payment System, remittances etc. Customers are acquired and serviced digitally and through a network of business correspondents (BC). 
  • Investments: JFSL aims to simplify wealth management by offering mutual funds, systematic investment plans (SIPs), and other investment products through a user-friendly digital interface. By democratizing access to financial instruments, it seeks to empower individuals to achieve their financial goals. 

Subsidiary Information 

  • Jio Finance Ltd: Jio Finance Limited (JFL), formerly Reliance Retail Finance Limited, is a wholly-owned subsidiary of JFSL and is registered with the RBI as a systemically important non-deposit taking NBFC. With a digital first approach, JFL is primarily engaged in Consumer Lending, and Corporate and MSME lending. 
  • Jio Payments Bank Ltd: Jio Payments Bank Limited, a joint venture between the Company and State Bank of India with shareholding of 77.25%:22.75% holds a payments bank license issued by RBI, to provide digital banking solutions to consumers and small businesses. 
  • Jio Payment Solutions Ltd: Jio Payment Solutions Limited (JPSL), formerly Reliance Payment Solutions Limited, has an in-principle approval from the RBI to operate as a Payment Aggregator (PA) to capitalise on the emerging opportunities in the fast-expanding payments industry. JPSL aims to drive its business by predominantly using the Payment Gateway (PG) and Unified Payments Interface (UPI) for both large enterprises and small businesses/merchants. JPSL has built partnerships and integrated with multiple banks and financial institutions with a clear focus on building cost efficiencies and having a sustained path to profitability. 
  • Jio Insurance Broking Ltd: Jio Insurance Broking Limited (JIBL), formerly Reliance Retail Insurance Broking Limited, obtained its direct broker licence from the Insurance Regulatory Development Authority of India (IRDAI) in 2007. JIBL operates in a sweet spot, because, with significant underinsurance, India presents a substantial opportunity for growth. JIBL has emerged as a key player by distributing life, non-life, and health insurance products digitally and has partnerships with 31 leading insurance providers, across public and private sector. 
  • Jio BlackRock JV: JFSL took a significant stride into the asset management sector by forming a joint venture with BlackRock Inc. Group, the world’s largest asset manager. The strategic partnership, a 50:50 JV, is aimed to leverage JFSL’s extensive market reach and BlackRock’s investment acumen to democratise consumer access to top-tier investment solutions across India. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹438 crore in Q3 FY25 up by 5.98% YoY from ₹414 crore in Q3 FY24.  
  • EBITDA of ₹313 crore in this quarter at a margin of 71% compared to 77% in Q3 FY24. 
  • Profit of ₹295 crore in this quarter compared to a ₹294 crore profit in Q3 FY24. 
  • The Lending and Leasing AUM is of ₹4199 cr as on December 31, 2024 compared to ₹1206 cr in Q2 FY25. 
  • The CASA customers count has reached 1.89 million customers and had direct integrations with 10 banks to offer net banking and cards services. 
  • Asset Management company filled application for final approval and senior leadership team of wealth management company is in progress. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 414 438 45 1855 
Expenses 94 125 6 296 
EBITDA 320 313 39 1559 
OPM 77% 71% 88% 84% 
Net Profit 294 295 31 1605 
NPM 71.1% 67.3% 68.9% 86.5% 
EPS 0.46 0.46 – 2.53 
SBI Life Insurance Q3 FY25
SBI Life Insurance Q3 FY25: Strong Revenue, Profit & Growth in AUM

SBI Life Insurance Company Ltd: Overview 

SBI Life Insurance, one of the most trusted life insurance companies in India, was incorporated in October 2000 and is registered with the Insurance Regulatory and Development Authority of India (IRDAI) in March 2001. Serving millions of families across India, SBI Life’s diverse range of products caters to individuals as well as group customers through Protection, Pension, Savings and Health solutions. Driven by ‘Customer-First’ approach, SBI Life places great emphasis on maintaining world class operating efficiency and providing hassle-free claim settlement experience to its customers by following high ethical standards of service. Additionally, SBI Life is committed to enhance digital experiences for its customers, distributors and employees alike. SBI Life strives to make insurance accessible to all, with its extensive presence across the country through its 1,086 offices, 25,949 employees, a large and productive network of about 241,251 agents, 77 corporate agents and 14 banc assurance partners with more than 41,000 partner branches, 144 brokers and other insurance marketing firms. In addition to doing what’s right for the customers, the company is also committed to provide a healthy and flexible work environment for its employees to excel personally and professionally.   

Business Segments 

  • Non-Participating Products: The Non-Participating segment comprises of individual savings, group savings and protection segments. These products cover the insured for a specific period and the insured do not participate in the surplus of the underlying investment pool. This segment includes Individual savings, group savings, protection, etc.  
  • Participating Products: Participating life insurance products are products where the insured participates in the surplus from the segment during the term of the contract. These are savings cum protection products that provide a guaranteed sum assured and long term returns through participation in surplus. 
  • Linked Products: Linked products provide the benefit of investment as well as protection. They provide returns directly linked to the performance of the underlying funds and have a transparent charge structure which is explicitly stated at the outset. The investment risk on these products is borne by the policyholder. This segment also includes a fund based group gratuity, superannuation and leave encashment product for employers. 

Subsidiary Information 

SBI Life Insurance Company Ltd has no subsidiary or investments in companies. It is a subsidiary of its parent company SBI. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹18862 crore in Q3 FY25 up by -52% YoY from ₹39033 crore in Q3 FY24.  
  • EBITDA of ₹596 crore in this quarter at a margin of 3% compared to 1% in Q3 FY24. 
  • Profit of ₹551 crore in this quarter compared to a ₹322 crore profit in Q3 FY24. 
  • AUM stands at 4.4 trillion with 19% growth, individual New Business Sum Assured stands at 1,815 billion with 33% growth. 
  • The Company has strong distribution network of 309,590 trained insurance professionals consisting of Agents, CIFs and SPs along with widespread operations with 1,086 offices across country. 
  • Robust solvency ratio of 2.04 as on December 31, 2024 as against the regulatory requirement of 1.50 indicating strong financial position of the Company. 
  • The sales through bank channels contributed about 56%, Agency 21% and other channels had contributed 22%. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 39033 18862 80636 131988 
Expenses 38631 18266 80514 131742 
EBITDA 352 593 122 246 
OPM 1% 3% 0% 0% 
Net Profit 322 551 1721 1894 
NPM 0.8% 2.9% 2.1% 1.4% 
EPS 3.21 5.5 17.2 18.9 
Wipro to Hire 10,000-12,000 Freshers Annually
Wipro to Hire 10,000-12,000 Freshers Annually; Strong Q3 Results & Growth Plans

Wipro Ltd: Overview 

We are a leading information technology services and consulting company, focused on building innovative solutions to unlock our clients’ boldest ambitions. Anchored in our vision to become an AI-centric organization, we leverage our comprehensive portfolio of capabilities in consulting, design, engineering, and operations to offer tailored solutions that address our clients’ most complex digital transformation needs. With a global workforce of over 230,000 committed individuals across 65 countries, we fulfil our promise of helping our customers, colleagues, and communities thrive in an ever changing world. IT service offerings are categorized under four Global Business Lines (GBLs), designed to drive focused growth in our priority markets. The offerings combine global expertise with local geo-focus in building capabilities while ensuring a dedicated sales presence closely aligned with the needs and preferences of our clients. Global technology spending grew at a slower pace of 4.4% year-over-year in the calendar year ended December 31, 2023, with enterprise software and IT services being the primary drivers of growth and de-growth seen in hardware and devices. t, AI-related activities have witnessed a significant uptick with 2.7x growth in activities related to industry collaborations and partnerships, product/service launches and enterprise. It is expected that there will be an increase in foundational spend across cloud, IT modernization, digital customer experience, and digital engineering projects. 

Latest Stock News (20 Jan, 2025) 

Technology services provider Wipro Ltd will hire 10,000 to 12000 freshers every year starting from next fiscal year, according to its Chief Human Resources Officer Saurabh Govil. For 2024-25 (FY25), Wipro aims to hire between 9,000 and 10,000 freshers, with plans to scale up in subsequent years, he said. Wipro reported better-than-expected October-December 2024 quarter results. The company projected fourth-quarter revenue growth to range from -1% to +1% in constant currency terms. The third-quarter performance was driven by quick deal wins and growth in healthcare and banking sectors, according to CEO Srini Pallia. CFO Aparna Iyer attributed the margin improvement highest in three years despite wage hikes to rigorous execution, high utilisation rates, improved offshoring, and cost optimisations in non-client-facing roles and overheads. Iyer stated that, we have had free cash flow generation, which is upwards of 130% even year to date; we had a powerful cash flow generation for the last two years. Our cash is at an all-time high, and we felt this was the right time. We also laid out our strategic priorities, and we are very clear that we are now ready to increase the committed payout levels, and therefore we have done that. We have also announced an interim dividend of ₹6 per share, which is substantially more than what we have done in the past. So increased capital allocation and increased dividend quantum. 

Business Segments

  • IT Services: This is the largest segment and encompasses a broad range of services, including consulting, application development, system integration, and digital transformation. Within IT Services, Wipro caters to industries such as Banking, Financial Services, and Insurance (BFSI), Consumer Goods, Healthcare, Manufacturing, Energy, Technology, and Communications. Wipro also focuses on emerging areas like cybersecurity, analytics, and AI-driven automation to help clients optimize operations and enhance customer experiences. 
  • IT Products: Wipro’s IT Products segment provides enterprise-class hardware and software solutions to meet the infrastructure needs of businesses. The offerings include computing, networking, and storage solutions, primarily targeted at Indian enterprises and government clients. 
  • Business Process Outsourcing: This segment encompasses business process outsourcing (BPO), process automation, and platform-based solutions. It focuses on delivering operational efficiency and scalability for industries such as retail, utilities, and healthcare, leveraging technologies like robotic process automation (RPA) and AI. 
  • Cloud & Infrastructure Services: This segment specializes in cloud migration, management, and optimization services. It helps businesses modernize their IT infrastructure to achieve agility and cost efficiency through partnerships with major cloud providers like AWS, Microsoft Azure, and Google Cloud. 

Subsidiary Information

  • Wipro LLC: This subsidiary operates in the United States, focusing on delivering Wipro’s comprehensive suite of IT services, including consulting, digital transformation, and business process outsourcing, to clients across various industries. Wipro LLC plays a crucial role in strengthening Wipro’s presence in the North American market. 
  • Wipro Philippines Inc.: Established to cater to the Asia-Pacific region, Wipro Philippines Inc. provides a range of IT and BPO services. The company is domiciled in the Philippines and was incorporated and registered with the Philippine Securities and Exchange Commission. It operates as a 99.99% owned subsidiary of Wipro IT Services SE, delivering tailored solutions to meet the diverse needs of clients in the region. 
  • Wipro IT Services UK Societas: Incorporated in the United Kingdom, Wipro IT Services UK Societas serves as an investing and holding company. It is a subsidiary of Wipro Limited and plays a strategic role in managing investments and overseeing operations within the UK and Europe. 
  • Wipro Holdings (UK) Ltd: This entity functions as a holding company in the United Kingdom, managing Wipro’s investments and subsidiaries in the region. It supports Wipro’s strategic initiatives and expansion plans within the UK and European markets. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹22319 crore in Q3 FY25 up by 0.51% YoY from ₹22205 crore in Q3 FY24.  
  • EBITDA of ₹4540 crore in this quarter at a margin of 20% compared to 19% in Q3 FY24. 
  • Profit of ₹3367 crore in this quarter compared to a ₹2701 crore profit in Q3 FY24. 
  • Wipro has made great progress in consulting of AI powered industry and cross industry solutions. 
  • The large deals have decreased this quarter but medium and small deals have strong demand. 
  • Demand form America is as usual high, and Europe demand is increasing as they are focusing more on cost optimization and this demand will be reflected in Q4 FY25. 
  • As per America’s budget information, their focus is more on developing and spending on Gen AI and Cloud infrastructure, so more demand is on that side. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 22205 22319 90488 89760 
Expenses 18007 17779 73649 73008 
EBITDA 4198 4540 16839 16752 
OPM 19% 20% 19% 19% 
Other Income 598 1005 2275 2631 
Net Profit 2701 3367 11366 11112 
NPM 12.5% 15.1% 12.6% 12.4% 
EPS 2.58 3.2 10.3 10.6 
Tech Mahindra: Global IT Leader Strengthening Operations
Tech Mahindra: Global IT Leader Strengthening Operations Through Strategic Mergers

Tech Mahindra Ltd: Overview 

Tech Mahindra is a leading global technology company, part of the Mahindra Group, offering IT and business process outsourcing services. Founded in 1986, the company provides innovative solutions in digital transformation, consulting, and business re-engineering across industries such as telecommunications, healthcare, BFSI, and manufacturing. It has an employee base of more than 145,000 across 90 countries, and provides services to 1200+ clients. The global IT services industry, valued at over $1 trillion, is essential for helping businesses across sectors innovate, streamline operations, and improve customer experiences through advanced technologies like artificial intelligence (AI), cloud computing, app development & maintenance services the Internet of Things (IoT), and 5G. While industry growth was around 8.4%, it slowed to 5.4% in CY23 due to geopolitical pressures and various market shifts. The first quarter was challenging for the IT sector as many major clients reassessed their IT spending, focusing on larger, more efficient providers an advantage for Tech Mahindra. Despite the broader industry weakness, Tech Mahindra had a strong quarter, partnering with 7 of the top 10 companies, which helped maintain its market position and secure ongoing client orders. 

Latest Stock News (20 Jan, 2025)

The Board of IT services and consultation company Tech Mahindra has approved the merger of its arm Healthnxt Inc. with parent company Tech Mahindra Americas. TMA, a wholly-owned material subsidiary of the company, provides computer consulting, programming support services and IT Management and Consulting Services to customers in various industries including healthcare. Healthnxt is wholly-owned subsidiary of TMA and a step down wholly-owned subsidiary of the company. It is a virtual healthcare company that offers fully integrated inpatient experience at home and outsourced services. The business of both entities Healthnxt and TMA are complimentary hence consolidation of the entities will result in synergy of business operations, optimize operational cost and reduce the compliance risk. The investment of TMA in Healthnxt will get cancelled on the merger becoming effective. Tech Mahindra, in a regulatory filing today, informed that NCLT, Mumbai, has sanctioned the Scheme of Merger by Absorption of Perigord Premedia (India) Private Limited, Perigord Data Solutions (India) Private Limited, Tech Mahindra Cerium Private Limited and Thirdware Solution Limited, wholly-owned subsidiaries of the Company with the Company. The merger will result in reduction in the overheads including administrative, managerial and other expenditure, and optimal utilization of resources by elimination, if unnecessary duplication of activities and related costs. It will provide better opportunities to scale up their performance with a larger corporate entity having large revenue base, resources, assets base etc. 

Business Segments 

  • Tele communications: It provides end-to-end services for telecom companies, including 5G network implementation, software-defined networks (SDNs), and Network Function Virtualization (NFV). Tech Mahindra’s expertise in telecom is a major differentiator, allowing it to support clients in the telecommunications industry as they undergo digital transformation.  
  • Manufacturing: Tech Mahindra works with global manufacturing and automotive companies, offering IT and engineering services that span product lifecycle management (PLM), industrial IoT, smart manufacturing, etc.  
  • Cloud Infrastructure: Tech Mahindra helps companies migrate to cloud-based platforms, implement AI-driven analytics for decision-making, and improve digital security measures. This segment supports businesses in adopting cutting-edge technologies for greater agility and innovation.  
  • Healthcare & Life Science: Tech Mahindra provides IT solutions specific to the healthcare and life sciences sectors, such as healthcare management systems, digital healthcare platforms, and compliance management. 
  • BFSI: It offers innovative solutions for retail banking, lending and leasing, cards and payments, asset and wealth management, investment banks, and stock exchanges. We offer technology capabilities around consulting, enterprise architecture, business, network, security and BPS solutions, and modernisation initiatives like cloud, engineering, connectivity, customer experience and ESG. 

Subsidiary Information 

  • Tech Mahindra USA Inc.: As a wholly-owned subsidiary of Tech Mahindra Limited, Tech Mahindra USA Inc. serves as a pivotal entity in the North American market. It offers a comprehensive range of IT services, including consulting, digital transformation, and business re-engineering solutions, catering to diverse industries such as telecommunications, healthcare, and manufacturing. Leveraging its deep domain expertise and technological capabilities, the company enables clients to navigate complex digital landscapes and achieve operational excellence. 
  • Zen3 Infosolutions Inc.: Specializing in artificial intelligence, data analytics, and software development, Zen3 delivers innovative solutions that drive digital transformation for businesses. In September 2024, Tech Mahindra announced the merger of Zen3 Infosolutions with Tech Mahindra (Americas) Inc., aiming to streamline operations and enhance service delivery in the region. 
  • Eventus Solutions Group LLC: Eventus Solutions Group is a US-based company specializing in customer experience (CX) consulting and contact center solutions. The acquisition has strengthened Tech Mahindra’s capabilities in delivering end-to-end customer engagement solutions. In November 2024, Tech Mahindra’s board approved the merger of Eventus Solutions Group with its parent company, Tech Mahindra (Americas) Inc., to further integrate services and optimize operational efficiencies. 
  • Tech Mahindra GmbH: It focuses on providing IT services and solutions tailored to the European market. The company offers a broad spectrum of services, including digital transformation, consulting, and engineering services, catering to industries such as automotive, manufacturing, and telecommunications. By leveraging local expertise and global resources, Tech Mahindra GmbH helps clients drive innovation and achieve business objectives in a competitive landscape. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹13286 crore in Q3 FY25 up by 1.4% YoY from ₹13101 crore in Q3 FY24.  
  • EBITDA of ₹1809 crore in this quarter at a margin of 14% compared to 9% in Q3 FY24. 
  • Profit of ₹989 crore in this quarter compared to a ₹524 crore profit in Q3 FY24. 
  • The active clients of tech Mahindra has decreased by 53 to1175 in Q3 FY25 and utilization rates of employees is 85.6%. 
  • Healthcare & Lifesciences segment has seen the highest growth as QoQ in revenue of 4.5% and following it BFSI seen 2.7% growth. But YoY growth is higher in BSFI compared to other segments. 
  • Total deal wins in this quarter is $745 Mn, which is great as it shows a high demand from its clients. 
  • Selected by a large German Telco to support their technology domains across Network, IT, and Service Operations, driving autonomous operations using GenAI. 
  • Awarded a global managed Network as a Service (NaaS) deal by a Europe based one of the largest chemical producers globally. 
  • Won a managed services deal from a leading global auto-maker for supporting their IT landscape covering every aspect of their business operations by leveraging our ADMS and Cloud & Infra Services capabilities. 
  • Tech Mahindra signed a multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to develop an Autonomous Networks Operations Platform (ANOP) designed for Communication Service Providers (CSPs) and enterprise customers. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 13101 13286 53290 51996 
Expenses 11955 11477 45527 47489 
EBITDA 1146 1809 7763 4506 
OPM 9% 14% 15% 9% 
Net Profit 524 989 4857 2397 
NPM 3.9% 7.4% 9.1% 4.6% 
EPS 5.23 10.05 49.6 24.14 
PB Fintech Stock
PB Fintech Stock Plunges 6% to INR 1,706 Amid Market Volatility

Overview

PB Fintech, the parent company of Policybazaar and Paisabazaar, is a leader in India’s insurance and fintech sectors. The company is known for leveraging technology to simplify insurance, loans, and other financial services for consumers. To expand its market presence, it has actively diversified into new segments, including healthcare and payment aggregation.

Despite strong financial growth and a positive long-term outlook, PB FinTech shares have recently faced trouble due to valuation concerns, regulatory inspections, and the challenge of seeing profits.

Latest News

  1. Intraday Decline: The stock nosedived by 6% to INR 1,706 during intraday trading on January 17 but recovered slightly to trade at INR 1,718.65 (-5.1%) by 12:20 PM.
  2. Brokerage Downgrade: Morgan Stanley downgraded the stock from “equal-weight” to “underweight,” citing lower profit emergence and high valuations, with a price target of INR 1,400 (14% downside).
  3. GST Raid: A subsidiary of PB Fintech was recently raided by the GST department in connection with vendor inquiries.
  4. Diversification Efforts:
    • Entered the healthcare segment via PB Healthcare Services Private Limited on January 2.
    • Expanded into the payment aggregator space with PB Pay in 2024.
    • Received an RBI account aggregator license for PB Financial Account Aggregator Private Limited in October 2024.
  5. Tax Relief: On January 4, PB Fintech received relief on a tax dispute, saving INR 166.12 Cr for FY 2015-16.

Financial summary

  • Market Capitalization: INR 78,923.99 Cr (as on 17 January 2025)
  • Latest stock performance:
    • Monthly return: -19% .
    • Annual return: +94.67%
    • Weekly Fall: -16.2% last week (The second biggest loser among 31 tracked technology stocks)
  • Highlights of Q2 FY 2025:
    • Net Profit: INR 50.98 Trillion (Loss INR 21.11 Trillion in Q2FY)
    • Operating income: INR 1,167.2 Cr (+43% YoY from INR 811.6 Cr)
    • 4th quarter continues to make profits
  • Important events: It entered the healthcare sector and touched an all-time high of Rs 2,254.95 on January 3, 2025.

PB Fintech’s long-term potential remains strong, fueled by diversification and revenue growth. However, short-term market challenges and valuation concerns are weighing on investor sentiment.

Axis Bank Ltd Earnings
Axis Bank Q3FY24: Pioneering Digital Transformation and Expanding Retail Banking in India

Axis Bank Ltd: Overview 

Axis Bank Ltd, established in 1993, is one of India’s largest private sector banks, renowned for its comprehensive suite of financial products and services catering to retail, SME, and corporate clients. The bank operates through an extensive network of over 4,700 branches, 15,000+ ATMs, and a growing digital presence, providing seamless access to banking services across urban and rural India. The bank operates through an extensive network of branches, ATMs, and digital platforms, ensuring seamless access to banking services for its diverse customer base. With a focus on digital transformation, Axis Bank has launched various innovative products and services, such as mobile banking, digital lending, and personalized financial solutions. The bank’s resilience is underpinned by strong financial performance, prudent risk management, and a diversified revenue stream. It continues to invest in technology, human resources, and operational efficiencies to maintain its competitive edge, making it a key player in India’s evolving financial ecosystem. The acquisition of Citibank India’s consumer business has further strengthened its retail portfolio, adding affluent customers and enhancing its credit card segment. India’s banking sector is on a growth trajectory, driven by economic recovery, government initiatives, and increasing digitization. Axis Bank is well-positioned to capitalize on these trends, with its strong focus on innovation, robust capital base, and diversified portfolio. The industry’s favourable outlook and Axis Bank’s strategic initiatives indicate a promising future for the company. 

Latest Stock News (18 Jan, 2025)

Axis Bank recently announced the re-appointment of Prof. Mahendra Dev as an Independent Director on its Board for a second term, reflecting the company’s commitment to maintaining strong governance and leveraging experienced leadership. However, the bank’s recent quarterly earnings have fallen short of market expectations, with weaker-than-anticipated profitability and lower net interest income growth. Several brokerage firms have subsequently revised their price targets for the stock downward, citing subdued performance and concerns over margin pressures. Despite these challenges, Axis Bank remains focused on its growth strategies, including digital transformation and retail segment expansion. Investors are closely monitoring the company’s execution in the coming quarters to assess recovery potential. 

Business Segments

  • Retail Banking: This segment is a cornerstone of Axis Bank’s operations, contributing significantly to its revenue. Retail banking caters to individual customers, offering a wide array of products such as savings and current accounts, fixed and recurring deposits, and various loan products, including home loans, personal loans, vehicle loans, and credit cards. The segment also includes investment services like mutual funds, insurance, and bonds. The bank has strategically expanded its reach through a vast network of branches and digital platforms, ensuring seamless service delivery. Its focus on leveraging technology for personalized banking experiences has further strengthened its position in the retail space, particularly with the growing adoption of its mobile banking and internet banking platforms. 
  • Corporate Banking: Axis Bank’s corporate banking division serves businesses ranging from small and medium enterprises (SMEs) to large corporations. This segment offers a comprehensive suite of services, including working capital loans, term loans, trade finance, and cash management solutions. The bank also provides specialized services like treasury products, Forex management, and advisory services for mergers and acquisitions. The corporate banking division plays a vital role in fostering long-term relationships with businesses by understanding their unique financial needs and providing customized solutions. It also emphasizes sustainable financing, supporting businesses aligned with ESG principles and renewable energy projects. 
  • Treasury & others: The treasury segment focuses on managing the bank’s investments, liquidity, and financial risks. It handles government and corporate securities, foreign exchange, and derivative instruments. Additionally, the treasury division supports the bank’s trading and arbitrage activities. This segment also manages Axis Bank’s capital markets operations, enabling clients to access debt and equity markets. The bank’s treasury activities ensure effective liquidity management, compliance with regulatory requirements, and optimal utilization of funds to maximize returns. 

Subsidiary Information

  • Axis Capital Ltd: This is the bank’s investment banking and institutional equities arm. It provides services such as capital raising through IPOs, QIPs, and private placements, as well as mergers and acquisitions advisory. Axis Capital is recognized for its robust research capabilities and deep market insights, serving institutional investors and corporate clients. 
  • Axis Securities Ltd: This subsidiary operates in the retail broking and investment advisory space. It offers trading services in equity, derivatives, and currency segments, alongside distribution of mutual funds, bonds, and insurance products. Axis Securities also facilitates investments in National Pension System (NPS) and provides portfolio management services, enhancing retail investors’ experience.  
  • Axis Finance Ltd: A non-banking financial company (NBFC), Axis Finance specializes in providing customized financial solutions. It caters to corporate and retail customers with products such as structured financing, loans against property, and personal loans, further diversifying the bank’s lending portfolio. 
  • Axis Trustee Services Ltd: This subsidiary acts as a trustee for various debenture and bond issuances, safeguarding the interests of investors. It ensures compliance with regulatory norms and facilitates the smooth functioning of debt market instruments. 
  • Freecharge Payment Technologies Ltd: Acquired by Axis Bank, Freecharge operates as a digital payment and financial services platform. It offers services like mobile recharges, utility bill payments, and digital wallets, supporting the bank’s digital banking initiatives and enhancing customer convenience. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹32162 crore in Q3 FY25 up by 8.6% YoY from ₹28865 crore in Q3 FY24.  
  • EBITDA of ₹2210 crore in this quarter at a margin of 7% compared to 8% in Q3 FY24. 
  • Profit of ₹6779 crore in this quarter compared to a ₹6520 crore profit in Q3 FY24. 
  • The fee income in Q3 FY25 is ₹5455 crore with 6% growth YoY, the deposits were ₹1,095,883 crore with 9% of YoY increase. 
  • The segment wise loan mix is 60% Retail Loans, 11% SME Loans and about 29% of Corporate Loans, and the loan growth is seen of 9%. 
  • The cost of fund is an important indicator and it has risen to 5.46% in Q3 FY25. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 28865 32162 87448 112759 
Interest 15943 18040 43389 61391 
Expenses 10506 11913 30641 40032 
Financing Profit 2416 2210 13418 11336 
Financing Margin 8% 7% 15% 10% 
Net Profit 6520 6779 10919 26492 
NPM 22.5% 21.1% 12.5% 23.5% 
EPS 21.5 21.8 35.2 85.5 
Reliance Industries Q3FY24
Reliance Industries Q3FY24: Strategic Acquisitions Propel Energy Innovation and Infrastructure Growth

Reliance Industries Ltd: Overview 

Reliance Industries Limited (RIL) is a diversified conglomerate and one of India’s largest publicly traded companies. The company is led by Mukesh Ambani, who has steered its evolution into a leader in both traditional and emerging business domains. It has a strong presence across multiple sectors, including petrochemicals, refining, oil & gas exploration, telecommunications, retail, and digital services. The company’s petrochemical business is a leading global player in producing polymers, chemicals, and synthetic fibres. Its refining business, centered around its Jamnagar facility, is one of the largest in the world, processing crude oil into a wide range of products, including gasoline, diesel, and petrochemicals. In the telecom sector, RIL owns Jio, a leading digital services provider in India, revolutionizing the country’s telecom landscape with affordable data and innovative digital services. The retail segment, led by Reliance Retail, operates numerous outlets across the country, spanning fashion, electronics, groceries, and more. Additionally, RIL has made strategic investments in renewable energy and is focused on transitioning to a cleaner energy future. Its forward-looking approach to technology, infrastructure, and sustainable growth positions it as a significant player in both domestic and global markets.  

Latest Stock News (18 Jan, 2025) 

Reliance Industries Limited (RIL) has announced two strategic acquisitions, highlighting its commitment to energy innovation and infrastructure. Reliance acquired a 100% stake in RNEBL, which Reliance New Energy Limited (RNEL) had previously owned as a step-down subsidiary. RIL incorporated RNEBL on January 1, 2025, making it a direct wholly owned subsidiary. The company specializes in developing advanced battery cells, battery packs, containers, and energy storage solutions. The acquisition underscores RIL’s focus on expanding its footprint in sustainable and innovative energy storage technologies. In addition to RNEBL, RIL acquired a 100% stake in LPTL for ₹8 crore. The acquisition is a step forward in enhancing India’s power transmission infrastructure. LPTL’s inclusion in RIL’s portfolio aligns with the company’s broader strategy of strengthening the nation’s energy and power capabilities. With these acquisitions, RIL continues to position itself as a leader in energy innovation and infrastructure development. As reported by republicbiz.com, by integrating advanced energy storage technologies and investing in power transmission, RIL demonstrates its commitment to driving India’s energy transition and supporting sustainable growth. 

Business Segments 

  • Digital Services: Jio’s subscriber base has shot up to 481.8 million. The pan-India rollout of True5G network was completed during the year in world-record time with over 108 million subscribers already having migrated to Jio’s True5G network. The launch of JioAirFiber has been well received by consumers. The introduction of JioBharat phone offers people who are on 2G networks an enriching data experience at affordable prices. In fact, JioBharat phone has already acquired 50% market share in the sub C 1,000 segment. 
  • Media & Entertainment: Media segment consolidated its market share with leadership across important segments. Record viewership of the Indian Premier League on JioCinema underscored our ability to scale-up audience on our digital platform in a short time. 
  • Oil & Gas Exploration: Overall domestic production grew 53.2% YoY to 268.6 BCFe. With increased production from the KG-D6 block, the business witnessed a robust EBITDA growth of 48.6% YoY. Exploration activities in the KG UDW1 block and multi-lateral well campaign in the CBM block are underway. 
  • Retail: The retail business significantly benefited from operating leverage, efficiency gains, and investments in technology and people. We continued to consolidate our leadership position through acquisitions and partnerships. We launched Tira, our omni-channel beauty retail platform and undertook rapid expansion of the platform’s digital and physical footprint. Our retail store network expanded to 18,836 stores, taking the overall retail space to 79.1 million sq. ft. 
  • Oil to Chemicals: Product cracks for transportation fuels remained strong albeit lower than the previous year. Demand for downstream chemicals was muted globally but domestic demand remained healthy. Despite the headwinds, the O2C business registered a resilient performance. Jio-BP launched the ‘You Deserve More’ campaign and continued to expand its network of fuel retailing and EV charging outlets. 

Subsidiary Information 

Reliance Industries has about 360 subsidiaries into its company, but here are some key subsidiaries explained in brief: 

  • Reliance Retail Ltd: As India’s largest and most profitable retailer, Reliance Retail offers a wide array of products, including groceries, electronics, and apparel, through an extensive network of physical stores and digital platforms. 
  • Reliance Jio Ltd: This subsidiary has transformed India’s telecommunications landscape by providing affordable 4G and 5G services, amassing over 479 million subscribers. Reliance Jio is preparing for an initial public offering (IPO) in Mumbai, slated for 2025, with an expected valuation exceeding $100 billion. 
  • Reliance Ventures Ltd: Serving as the venture capital arm of RIL, Reliance Ventures invests in emerging businesses and technologies, fostering innovation and strategic growth across various sectors. 
  • Tira Beauty Ltd: Launched in April 2023, Tira is an omni channel beauty retail platform under Reliance Retail, offering a curated range of beauty products through both online and offline channels. The platform leverages artificial intelligence tools to enhance customer experience and has plans to expand across 100 cities in India. 
  • TV18 Broadcast Ltd: A subsidiary of Network18, in which RIL holds a significant stake, TV18 Broadcast operates numerous television channels across news and entertainment genres, including CNN-News18 and CNBC-TV18, making it a prominent player in India’s media industry. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹239986 crore in Q3 FY25 up by 6.6% YoY from ₹225086 crore in Q3 FY24.  
  • EBITDA of ₹43789 crore in this quarter at a margin of 18% compared to 18% in Q3 FY24. 
  • Profit of ₹21930 crore in this quarter compared to a ₹19641 crore profit in Q3 FY24. 
  • O2C performance steady YoY, strong QoQ supported by feedstock optimisation and strong domestic demand. Rebound in Retail performance with higher footfalls and transactions amid strong festive season demand. 
  • Grocery- strong 37% growth in B2C, traction in consumer brands led by Campa and Independence, Continuing footprint expansion- added 779 new stores. 
  • Pan India network and improving device availability drives Jio 5G subscriber base to over 170 million as of Dec’24. Jio network continues to attract 70% of the incremental 5G devices sold in India. Record home connects of 2 million in 3Q FY’25 with total connected premises at 17 million. 
  • ResQ, the largest electronics service organization, expanded on-demand services to 75 additional cities, total coverage across 225 cities. 
  • Own Brand contribution continues to grow; Avaasa, Netplay & DNMX are leading brands in respective categories. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 225086 239986 876396 899041 
Expenses 184430 196197 734078 736543 
EBITDA 40656 43789 142318 162498 
OPM 18% 18% 16% 18% 
Net Profit 19641 21930 74088 79020 
NPM 8.7% 9.1% 8.5% 8.8% 
EPS 12.8 13.7 49.3 51.5