Stocks to Watch on January 10, 2025: TCS, Tata Elxsi, IREDA, GTPL Hathway, Adani Total Gas

Key stock movements are expected today as several prominent companies have reported their Q3 earnings and updates. Here’s a closer look at the financials and the potential impact on these stocks.

TCS Posts Modest Q3 Growth with Special Dividend

Tata Consultancy Services (TCS), India’s largest IT services company, posted a modest 4% increase in net profit for the third quarter. The profit stood at ₹12,380 crore compared to ₹11,909 crore in the previous quarter. However, revenues dipped slightly, falling by 0.4% to ₹63,973 crore from ₹64,259 crore.

Dollar revenues also saw a decline of 1.7%, standing at $7,539 million, compared to $7,670 million last quarter. On the brighter side, EBIT rose by 1.2% to ₹15,657 crore, with margins improving by 40 basis points to 24.47%.

Additional highlights include:

• Other income increased significantly to ₹1,243 crore, up from ₹729 crore in the previous quarter.
• The attrition rate climbed to 13% compared to 12.3% previously, indicating potential workforce retention challenges.
• TCS declared an interim dividend of ₹10 per share and a special one-time dividend of ₹66 per share, likely to attract investors.

While the overall performance was mixed, the dividend announcement may provide support to the stock.

Tata Elxsi Sees Profit Drop Amid Revenue Decline

Tata Elxsi, another Tata Group IT entity, reported a 13.3% decline in its Q3 profit, which stood at ₹199 crore compared to ₹229.4 crore in the previous quarter. Revenue dropped by 1.7%, falling to ₹939.2 crore from ₹955.1 crore.

Key metrics included:

• EBIT down 7.8% at ₹220.6 crore.
• Margins slipped by 55 basis points to 24.5%.

The underwhelming performance may raise concerns among investors, especially considering the declining margins and profits.

IREDA’s Strong Profit Growth Highlights Renewables Boom

Indian Renewable Energy Development Agency (IREDA) posted impressive growth, with Q3 profits surging 26.8% to ₹425.4 crore compared to ₹335.5 crore last quarter. Net interest income grew by 38.9%, reaching ₹622.3 crore from ₹448.1 crore.

The strong numbers reflect the growing focus on renewable energy investments and financing in India. Analysts may view IREDA as a key beneficiary of the country’s shift toward sustainable energy solutions.

GTPL Hathway Faces a Tough Quarter

GTPL Hathway reported a sharp 57% decline in net profits, which dropped to ₹10.2 crore from ₹23.7 crore in the previous quarter. Despite this, revenue increased by 4.3% to ₹887.3 crore from ₹850.9 crore.

The significant profit dip could be a cause for concern for stakeholders, despite the revenue uptick. The market reaction may depend on how the company plans to address its profitability challenges.

Adani Total Gas Gains on Positive Gas Allocation Update

Adani Total Gas is expected to see a favorable impact after GAIL (India) announced a 20% increase in the allocation of APM-priced domestic gas, effective January 16. This development is anticipated to stabilize retail gas prices, potentially boosting the company’s margins and consumer appeal.

The announcement could enhance investor sentiment toward Adani Total Gas, especially in a market where energy pricing stability is increasingly valued.

Summary Table of Key Metrics

With mixed earnings results and key policy updates, these stocks will likely experience varying degrees of price movement throughout the day. Investors should monitor these developments closely.