Fortis Healthcare's net profit fell by 2.5% in the second quarter due to rising expenses and decreased exceptional income

The diversified group ITC Ltd announced on Monday a decline in its consolidated profit by 18.45 percent in the September quarter of fiscal year 27. This decrease was due to increased expenses. Meanwhile, the company's revenue grew by 43.85 percent thanks to steady growth in non-cigarette segments.

According to regulatory filings, the Kolkata-headquartered company recorded a consolidated profit of INR 4,229.33 crore for the quarter from July to September of the current year. In the same period last year, the consolidated profit stood at INR 5,186.55 crore.

Operating revenue reached INR 30,578.4 crore in the second quarter of fiscal year 27, which is 43.85 percent higher than the INR 21,255.86 crore reported a year earlier. In its earnings report, ITC noted 'steady growth across all non-cigarette business segments.'

In the FMCG segment, the company recorded 'fourth consecutive quarter of double-digit revenue growth.' Despite inflationary pressures, the EBITDA margin in this segment rose by 50 basis points year-on-year. Furthermore, the paper segment experienced a 'strong recovery momentum,' and the agri-business demonstrated 'steady growth,' despite trade disruptions caused by West Asia.

ITC's total expenses amounted to INR 25,462.44 crore, which is 69.6 percent higher compared to the previous year. Total consolidated income, including other receipts, reached INR 31,085.76 crore, showing a growth of 42.33 percent in the second quarter of fiscal year 27.

ITC commented on the operating environment, noting that it continues to be characterized by heightened uncertainty amid renewed geopolitical tensions and trade disruptions. Crude oil and related commodity prices remained high, and supply chain issues and higher freight costs persisted. ITC added that global inflationary pressure intensified due to rising energy and food prices, as well as increasing sovereign bond yields and tightening financial conditions. In India, the rise in the overall inflation rate is attributed to widespread increases in food, fuel, and essential component prices.

On Monday, ITC Ltd shares closed at INR 266 on the BSE, up 0.15 percent from the previous close.

KPIT Technologies reported a nearly 29% drop in consolidated net profit, amounting to 121 crore rupees, for the second quarter ending in September. The main reason for this decline was pressure on the automotive market from Chinese manufacturers, which slowed down deal closures.

In the same period last year, the company demonstrated a net profit of 169 crore rupees. KPIT management expects losses to begin decreasing starting from the third quarter.

Forecasts and Market Trends

Sachin Tikekar, Co-founder and Joint Managing Director of KPIT Technologies, noted that a significant profit decline was observed among two of the company's largest clients—one in Europe and another in Japan. He expressed confidence that these contracts will hit a bottom within the next few quarters, possibly two or three. Nevertheless, he forecasts gradual growth among existing OEM clients in the passenger car, truck, and SUV segments.

In the reporting quarter, KPIT Technologies' consolidated revenue from operations increased by 6.5% to 1,691 crore rupees, compared to 1,588 crore rupees the previous year. However, revenue from the passenger car segment fell by 7.8% year-on-year to USD 132.36 million (approximately 1,260 crore rupees). Meanwhile, commercial vehicle segment revenue grew by 27.3% to USD 39.98 million (nearly 375 crore rupees).

Tikekar stated that the company's prospects look more encouraging. He highlighted nervousness among European passenger car manufacturers, which is leading to a slowdown in the decision-making process. Although the company is winning many new orders, the pace of decision-making remains slightly slow; however, in his opinion, the situation is moving in the right direction, confirming the effectiveness of the adopted strategy.

He also pointed to the immense pressure being exerted on European passenger car manufacturers regarding sales, which continue to decline, as well as on their margins. According to him, companies are forced to implement cost-cutting initiatives, which will likely continue for several more quarters. This pressure is driven by competition they face in China, as well as competition from China in other regions, including Europe, Southeast Asia, the Middle East, and others.

The total contract value secured by the company in the reporting quarter amounted to USD 213 million (about 2,026 crore rupees). Tikekar added that American OEMs are in a relatively protected position because most of their revenue comes from America. He noted that Japanese manufacturers are also in a better position, as America and Japan are two of their largest markets. Although there is some decline in indicators for Japanese, Korean, and American companies, it is minor compared to what European OEMs are experiencing.

In contrast, the situation in India for passenger cars is drastically different, as this market is the fastest growing. Tikekar noted that both local Indian OEMs and some foreign players are gaining momentum. Growth is observed particularly in Maruti Suzuki, Mahindra, Tata Motors, Hyundai, and Kia, while the position of Chinese and Vietnamese companies is noticeably strengthening in the electric vehicle segment.