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Contraction in Banking Stocks to around 6 percent due to RBI's repo rate cut
Banking, Business, Markets, Result Updates - July 21, 2022

AU Small Finance Bank Q1 results were up by 32% and down 23% sequentially.

AU Small Finance Bank Q1 results were up by 32% and down 23% sequentially.

 

AU Small Finance Bank, a Jaipur-based lender, reported a net profit of Rs. 268 crores with a jump of 32% from 203 crores YOY but was down by 23% sequentially from Rs. 346 crores in March 2022. This result was achieved on account of an improvement in interest income and a sharp fall in provisions. The bank made provisions of Rs. 38 Cr., lower by 81% from a year ago on account of improvement in the asset quality and COVID-19 related provisions.

The bank’s PPoP was at Rs. 394 Cr, down by 18% as other incomes fell and operating expenses rose. The other income fell to Rs. 159 Cr. and was down by 26% due to losses of Rs. 55 Cr. in the treasury operations. The net interest income was reported to have increased by 35% from Rs.924Cr. to Rs.976Cr. The quarterly net interest margin (NIM) was lower by 1 bib from 6% to 5.9% YOY. It intends to maintain the NIM in the current fiscal year due to the rise in floating rates, which is 25% of the book. The asset quality for the bank also improved. Net NPS was at 0.56% on 30 June, down from 2.26% in Q1 FY23. The provision coverage ratio rose from 49% earlier to 72% by June 30. The AUM grew to Rs. 50161 Cr. with a jump of 37% YOY. The deposits witnessed a growth of 48% to Rs. 54,631 Cr. in the June quarter. The company’s market share is only 3% in the banking system and is optimistic about its growth. Almost 90% of the portfolio is secured, which is a good sign.

The banks’ (CAR) stood at 19.4% versus 23.1% in June 2021. The EPS was recorded at Rs. 4.25, which was down from Rs. 11.02 in the previous quarter. The key risks for the bank are surging inflation, resulting in widening losses; exposure to the informal sector; regional dependence on one state; and a slowdown in the economy. However, since the bank primarily serves the underserved category like farmers, low-wage earners, and the informal sector, it provides them with pricing power. As the monsoon was on time, it is likely to be favorable for the bank, since the farmers will be in a better position to repay the debt.

The script gave a 3-year return of 75.01% as compared to the 44.23% return given by the Nifty 100. The market cap for the company is Rs. 37,4111Cr. The stock is currently trading at Rs. 593.65, up by 16 points, or 2.84%, and has touched an intraday high of Rs. 601 and a low of Rs. 570. The 52-week high was at Rs. 732.98 and the 52-week low was at Rs. 462.

 

 

 

Mindtree Q1 FY23 Result Update: Net Profit jumps 37% YoY to Rs. 472 crores.

Tata Motors, Jaguar Land Rover Q1 sale at 78825 units down by 37%.

 

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HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%
Business, Equities, Market News, Markets, Research, Result Updates - July 21, 2022

HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%

HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%

On 16th July 2022, HDFC Bank reported a net profit of Rs. 9,196 crores, up by 19% YoY from Rs. 7,729.64 crores. Lower provisions and improvement in the asset quality led to an increase in the overall earnings. Also, there was a sharp decline the credit cost. For the June quarter, provisions worth Rs 3,187.7 crore was recorded, down 34% YoY from Rs. 4830.8 crores. Provisions in the Q4 FY22 stood at Rs 3,312.35 crore.
However, the net profit dropped by 8.9 % QoQ from Rs. 10,055.18 crores. The company recorded revenue growth of 13% YoY to Rs. 41,560.27 crores during the June quarter as compared to the Rs. 36,771.47 crores in Q1 FY22.

HDFC Bank posted a net interest income (NII) of Rs. 19,481.4 crores, up by 14.5% from ₹17,009 crores in June 2021 on account of strong growth momentum. The increase in NII was driven by advances and deposits that recorded growth of 22.5% and 19.2% respectively. The total balance sheet grew by 20.3%. NIMs for the June quarter stood at 4.0%, which is stable QoQ & YoY. The total credit cost ratio was at 0.91% as compared to 1.67% for June 21.

Similarly, non-interest income increased to Rs 9,011.6 crore from Rs 6,288.6 crore YoY. Pre-provision operating profit of the bank rose by 14.7 % YoY to Rs 15,367.8 crores for Q1 FY23. Gross nonperforming assets (GNPA) were lower in Q1FY23 at 1.28% compared with 1.47% in Q1 FY22. However, it was higher than 0.32% reported in Q4FY22. Net non-performing assets (NNPA) of the lender dropped to 0.35% in Q1 FY23 as against 0.48% in Q1 FY22.

HDFC Bank registered a profit before tax (PBT) of ₹12,180.1 crores in the June quarter rising by 18.2% YoY. The bank reported total revenue growth of 13% to Rs 41,560.27 crore in June 2022 quarter as against Rs 36,771.47 crore in June 2021 quarter.

PPoP grew 1.5% YoY while declined by 6.0% QoQ at Rs. 15367.8 crores. Fee income for Q1FY23 stood at Rs. 53,30.4 crores while the loss on sale of investment stood at Rs. 1311.7 crores. Advances as of June 30, 2022, were reported at Rs. 1,39,5067.7 crores. The deposit growth for the quarter by 19.2% at Rs. 1,60,47,60 crores with a CASA ratio of 45.8%. Strong growth in advances was led by retail & commercial segments. There was a sequential deterioration in asset quality because of seasonal Agri NPAs.

The fee & commission segment grew 38.0% YoY and fell 4.8% QoQ. The sequential fall was owing to a high base of seasonally strong Q4FY22. The bank reported an MTM loss of Rs. 1311.7 crores due to a spike in the benchmark bond yields during the quarter. Excluding the MTM loss, the other income for the quarter grew 35.4% YoY. The operating expenses for the quarter grew 28.7% YoY due to the low base of last year on the back of lower activities during Covid-19.

 

Currently, the shares of HDFC Bank are trading at Rs. 1361.60 as compared to the previous close of Rs. 1365.05. The stock opened at Rs. 1360.55. The share price is down by 3.40 points or by 0.24%. The market cap is Rs. 756,409 crores.

 

 

 

 

 

HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%
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Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

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Vakrangee Q1 FY@3 Result Update
Business, Equities, Market News, Markets, Research, Result Updates - July 21, 2022

Vakrangee Q1 FY23 Result Update.

Vakrangee Q1 FY23 Result Update.

Vakrangee reported a net profit of Rs. 4.52 crores, down by 80.6% from Rs. 23.33 crores in June 2021. Near Term profitability has been impacted as the company is re-investing the operational cash flows for enhancing franchisee incentives. The net profit decreased from Rs. 30.12 crores, by 85% QoQ basis.

Gross Margins have been impacted mainly because of the launch of Additional Franchisee incentive schemes. The gross margin for the June quarter was 9.5% as compared to 22.1% in the previous quarter. The gross profit stood at Rs. 21.38 crores from Rs. 46.14 crores in the March quarter.

Revenue from Operations stands at Rs. 226.03 crores in Q1 FY23 as against  Rs. 154.02 crores for Q1 FY22, up by 8.25% QoQ. The revenue increased by 46.75% YoY from Rs. 154.02 crores. Strong growth was witnessed in revenues due to an increase in number of outlets as well as services becoming normalized and operational post-pandemic.

Quarterly Gross Transaction Value (GTV) crossed Rs. 134.37 Billion registering a growth of 25.58% on a YOY basis and 6.16% on a QOQ basis. The quarterly no. of transactions crossed 34.82 Million registering a growth of 28.96% on a YOY basis and 5.78% on a QOQ basis.

 

Total expenses the quarter ended nearly doubled to Rs 221.3 crore from Rs 124 crore on a YoY basis, increased by 78% YoY and by 77% QoQ from Rs. 124.8 crores. The total comprehensive income of the company as of Q1 FY23 was at Rs 4 crore as against Q1 FY22 of Rs 23.29 crore.

EBITDA stands at Rs. 10.43 crore in June 2022 down 69.4% from Rs. 34.08 crores in June 2021.

Profit before tax is Rs. 6.49 crore in June 2022 as compared to Rs. 30.54 crores in June 2021. The PBT for the March quarter was Rs. 37.75 crores.

EPS has decreased to Rs. 0.04 in June 2022 from Rs. 0.22 in June 2021 and 0.28 in the previous quarter.

 

On  20th July 2022, the stock is trading at Rs. 29.80 as compared to the previous close of Rs. 29.75, up by 0.05 points or by 0.17%. The stock opened at Rs. 29.95. The market cap of the company is Rs. 3,157 crores. The stock hit the intraday high and low of Rs. 30.15 and Rs. 29.65 respectively.

 

 

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

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Can India’s Private Sector Growth Sustain Itself Amid Cooling Momentum?
Business, Equities, Market News, Markets, Research, Result Updates - July 20, 2022

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

Tata Metaliks Ltd reported a net profit of Rs 1.22 crores in Q1 FY23. The net profit fell by 98.71% YoY from Rs. 94.72 crores and down by 97.67% QoQ from Rs. 52.46 crores. The decline in the net profit for the June quarter was on account of higher expenses.

During the June quarter, the expenses climbed up to Rs 667.72 crore from Rs 471.62 crore, up by 41.58% on yearly basis.

The expenses increased due to higher input costs. DIP business has delivered close to its planned volumes, the pig iron business got adversely impacted due to lower production and higher cost arising out of the annual maintenance shutdowns and also on account of operational issues in one of the blast furnaces for much of April and May. Sales Volume of Pig Iron & DI Pipe were lower by 23% & 8% respectively on a y-o-y basis owing primarily to softening of the market sentiment of Pig Iron from mid-May onwards. Pig Iron prices also dropped in market prices after the imposition of export duty by the Govt on 22nd May 2022. On the Raw materials front, coal and coke prices moved up significantly (coke price was up 30% over Q4). Profitability was severely impacted in the quarter owing to the above factors.

 

However, the total revenue increased by 10.37%  YoY, from Rs. 606.45 crores to Rs. 669.35 crores due to increased realization of both Pig Iron and DI Pipe by ~36 to 40%.  The revenue slipped by 17.84% QoQ from Rs. 814.65 crores. During the quarter there was an increase in the prices of coal, coke and other consumables. Another factor for the decline in profitability is the continuing drag of old DIP orders booked in FY21. Moreover, a sharp drop in pig iron prices post imposition of a 15% export duty severely affected the profitability in the June quarter.

 

EBITDA stands at Rs. 27.11 crores in the June quarter. It declined by 82.73% from Rs. 156.99 crores in Q1 FY22. The profit before tax stood at Rs. 1.73 crores, down by 97.64 % QoQ from Rs. 73.19 crores and 98.72 % YoY from Rs. 134.83 crores. The EPS has also decreased to Rs. 0.39 in June 2022 from Rs. 29.99 in June 2021 i.e. by 98.70%. The EPS fell by 97.65% QoQ from Rs. 16.61

 

Currently, the shares of Tata Metaliks are trading at Rs. 706.70 as compared to the previous close of Rs. 700.90, up by 5.05 points or by 0.86%. The shares opened at Rs. 701.50. The market cap of the company is Rs. 2,232 crores.

 

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.
Image shown is for representation only.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

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Can’s Q2FY25: Profitability Boosted by Enhanced Operating Efficiency
Expert Opinions, Real Estate, Real Estate News, Research - July 20, 2022

Oberoi Realty reported a decline in Book Value.

Oberoi Realty reported a decline in Book Value.

The Mumbai-based realty developer reported a decline in book value of 18.7%. The book value currently is at Rs.750Cr. which was at Rs.925Cr. in March 2022. The firm sold around 164 units during the last quarter. The volume of the sold houses in the first quarter is nearly 4.01 lakh square feet area which was over 0.92 lakh sq. ft. in the equivalent period for the earlier year.

The net profit of Oberoi Realty  fell by 19% to Rs.232.35 Cr. on a 4.2% increase in net sales to Rs.823.46 Cr. in Q4FY2022. Analysts are bullish on the stock and expect an upside of 40%. The dip in the book value is primarily due to seasonality, stamp due hikes accompanied by an increase in the interest rates. The sales are mainly driven by Elysian, Goregaon, Sky City, Borivali, Eternia, and Enigma in Mulund. The sales will pick up post receipt of OC. Promoters hold a 67.7% stake in the company, while the FIIs own 20.26% and DIIs have around 9.09% as of March 2022.

The trend is likely to continue because of cost inflation and an increase in the cost of capital and favor top developers. Many companies have mitigated cost impact through price hikes in FY23. There could be further increased in the prices, to improve the profit margins. The rise in interest rates was forthcoming. Conversely, despite this, developers assume that it won’t have a significant impact on demand. Any increase in the interest rate above 8% might have to dampen future demand as it is an end-user-driven demand.

The management expects the business to continue for looking at a few large redevelopment projects outside Mumbai. The company has entered into MOU and will confirm once closed. The company is optimistic about launching recent projects in FY2023. A transformed concentration on business development is a positive sign to provide further growth to the company.
It is one of the leading real estate developments Company. The realtor mainly focuses on premium developments in office spaces, hospitality, residential and social.

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BEML Surges by 7.86% on Likely Upgrade to Navratna Status
Business, Editorials, Market News, Markets, Result Updates - July 19, 2022

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

On 15th July 2022, JSPL reported a net profit of Rs. 2770.88 crores as against the net profit of Q1 FY22 at Rs. 14.25 crores. The net profit increased on account of higher income. The total revenue increased from Rs. 10,643.17 crores in the March quarter to Rs. 13,069.17 in the June quarter. The revenue was up by 23% YoY.

The output of steel remained almost flat at 1.99 million tonnes (MT) as compared to 2.01 MT in April-June 2021. However, there was a fall by 6% QoQ . The sale of steel stood at 1.74 MT against 1.61 MT a year ago and was down by 16% QoQ. The key divers foe the fall of the sale was the challenging marketing conditions and the imposition of export duty. Due to the imposition of the export duty, the domestic volume fell by 12% and export volume slipped by 28%. During the June quarter, the realization was higher by 10% QoQ.

Expenses were also higher at Rs 10,566.64 crore as against Rs 7,233.55 in Q1 FY22. The costs grew by 10% due to the increase in the prices of coking coal by 33% and thermal coal by 27%.

The EBITDA margin during this quarter is 42.8% as compared to the previous quarter at 26.4%

In Mozambique, the company’s Chirodzi mine produced 0.93 MT ROM (run of mine) and sold 197 KT (kilo tonne) coking coal. Mozambique operations have reported an EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs. 334 crores for 1QFY23, driven by higher sales volumes and realisations. During April-June, Kiepersol mine in South Africa reported production of 146 KT ROM, and sales of 74 KT. The mine reported EBITDA of Rs. 84 crores. for the quarter. The company’s Russel Vale mine located in Australia produced 138 KT ROM, and dispatched 79 KT coking coal. The mine reported EBITDA of Rs. 24 crores for the quarter.

JSP’s 1QFY23 standalone Gross revenues of Rs. 14,541Cr declined by 7% Q-o-Q and up by 27% YoY as lower volumes more than offset the benefit from higher realisations. Notwithstanding higher input costs, 1QFY23 Adjusted EBITDA of INR 2,865Cr was 8% higher Q-o-Q and fell by 35% Y-o-Y. Q1FY23 Adjusted Profit after tax (PAT) of INR 2,072Cr (Adjusted for exceptional) increased 44% Q-o-Q and slipped by -22% Y-o-Y on higher operating profit and lower finance costs. Pellet production of 1.92mt declined 11 % Y-o-Y (-3% Q-o-Q) due to negligible external sales (30KT vs. 400KT in 1QFY21)

Consolidated Gross Revenues fell 8% Q-o-Q to INR 14,738Cr (+26% Y-o-Y), driven by lower steel and pellet sales partially offset by higher realisations. Adjusted EBITDA of INR 2,993Cr was higher by 3% Q-o-Q but declined 32% Y-o-Y due to rise in input costs and unfavourable base in the prior year (low cost iron ore inventory available in 1QFY22). 1QFY23 Adjusted Profit after tax declined by 23% Y-o-Y (+5% Q-o-Q) to INR 1,929Cr on the back of lower operating profit, partially offset by lower finance costs. Funds from JPL divestment has further strengthened JSP’s balance sheet with Consolidated Net Debt declining further by INR 1,149Cr in 1QFY23 to end the quarter at INR7,727Cr. Net Debt to EBITDA has improved to 0.54x from 0.57x in Q4 FY22.

 

On 18th July 2022, the shares of the company are trading at Rs. 351.50 , up by 6 points or by 1.74%. The shares previously closed at Rs. 345.50 and opened today at Rs. 349.05. The market cap of JSPL is Rs. 35,856 crores. The stock hit an intraday high of Rs. 353 and intraday low of Rs. 341.95.

 

 

 

 

 

 

Mindtree Q1 FY23 Result Update: Net Profit jumps 37% YoY to Rs. 472 crores.

 

 

 

 

 

 

 

 

 

 

 

 

 

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ICICI Prudential Life Insurance Q1 FY23 result update
Business, Market News, Markets, Result Updates - July 18, 2022

ICICI Prudential Life Insurance Q1 update.

ICICI Prudential Life Insurance Q1 FY23 result update.

ICICI Prudential Life Insurance Company posted a net profit of Rs. 156Cr. in Q1FY23, on Saturday, compared to a loss of Rs.186Cr. in Q1FY22. The growth was primarily on account of lower claims and provisions due to Covid-19.

The AUM for the company grew by 3.1% to Rs. 2, 30,072Cr. The 13-month persistency ratio improved to 85.5% while 43-month ratio increased from 63.4% to 65.0% in FY23. As per the Management, the company 4P’s strategy guided by elements like Premium growth, Protection focus, Persistency improvement, and Productivity enhancement is on track with a target of doubling the FY19 value of the new business (VNB).

The business reported a negative investment income of Rs.6,884 Cr. in Q1FY23 versus a positive investment income of Rs.9,0609 Cr. in Q1 FY22. The total expenses incurred increased by 16.1% to Rs.1,411 Cr. in Q1 FY23 from Rs.1215 Cr. in FY22. The APE (Annual Premium Equivalent) witnessed a growth of 24.7% o Rs.1,520Cr. compared to Rs.1,219Cr. in FY22. The VNB was at Rs.471Cr a growth of 31% in FY23 which was previous at 28.0%, on account of a shift in the underlying product mix.

The business premium stood at Rs.3184 Cr. with a growth of 24.4% as compared to Rs.2,559Cr. The annuity APE rose to Rs.98Cr. in FY23 with robust growth of Rs.69% which was at Rs.58Cr. Savings APE was at Rs.892Cr. to Rs.1092Cr for the same period.
The company’s TWRP ratio (total weighted received premium) for savings business and the total cost was at 16.9% and 23.8% respectively. The APE of new business is significant and expenses will not affect margins. The ICICI bank-backed insurance company has a debt-equity mix of 54:46 as of 30 June 2022. The company has zero NPA with 98% of debt instruments being AAA rated and treasury bonds. The claims and benefits payout decreased by 2.8% to Rs.5,512Cr. in FY23.

The Company strives to target untouched customer segments and expand in distribution footprint which enabled them to maintain its market leader position and acquired a market share of 15.8% in Q1 FY23. The net worth is at Rs.9,053 Cr and a solvency ratio of 203.6% against the regulatory requirement of 150%. ICICI Bank and Prudential Corporation holdings promote ICICI Prudential Life Insurance.

The continued supply chain management, ongoing geopolitical crisis, spike in commodity prices, the surge in inflation, and net outflows from the capital market all the factors have directly affected the unit link business. The scrip closed at Rs. 520.55 on Monday, up by 0.67% or 3.45 points. The market cap of the company is Rs.74,246Cr. It touched an intraday high of Rs.527.55 and a low of Rs.514.30.

 

 

Indigo to “rationalise” salaries of technicians following mass sick leave.

Loan growth, higher margins, and lower costs to drive bank bottom lines in Q1.

NBFCs and HFCs securitization volumes almost doubled.

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Krishna Institute reported a net profit of Rs. 79 Cr.
Business, Editorials, Market News, Markets, Result Updates - July 16, 2022

Mindtree Q1 FY23 Result Update: Net Profit jumps 37% YoY to Rs. 472 crores.

Mindtree Q1 FY23 Result Update: Net Profit jumps 37% YoY to Rs. 472 crores.

 

On 13th July 2022, Mindtree reported 37.3% rise in the consolidated net profit on YoY basis for the June 2022 quarter. The net profit increased from Rs. 343 cr. to Rs. 471.6 cr. However, on quarterly basis the net profit slipped by 0.3% from Rs. 473.1 cr in the previous quarter. There is an increase in the revenue of 36.2% year-on-year to Rs 3,121.1 crore during April-June 2022. Revenue fell by 7.7% as against the March 2022 quarter with Rs. 2897.4 cr

In terms of dollars, the company reported a revenue of $399.3 million, a growth of 28.6% and 4%QoQ. Its net profit was $60.3 million, a jump of 29.7% y-o-y and a decline of 3.8% q-o-q. This was sixth consecutive quarter of more than 5% growth in constant currency.

The company’s highest revenue of 76.8% came from North America, followed by APAC and Middle East (8.6%), Continental Europe (7.9%), and the UK and Ireland (6.8%).

The communications, media, and tech contributed the highest to Mindtree’s revenue in Q1 with 44.1% of the overall revenue. Retail, CPG, and manufacturing contributed 19.8% and banking, financial services and insurance about 18.6%; travel & transportation and hospitality & healthcare contributed 15.4% and 2% respectively.

 

The company signed a contract of $570 million during the June quarter, the highest ever for the company.

The company’s EBIT margin is 21.1% compared to 18.9% QoQ and 17.7% YoY. Investments and cash stood at an all-time high of $500 million

For the June quarter, the attrition is 24.5%, up from 23.8% in the March quarter and higher than Q1 FY22 recorded at 13.7%. However, the EBITDA improved to 8.2% QoQ.

 

According to Debashis Chatterjee, chief executive officer and managing director of Mindtree, the company’s order book in the June quarter was the highest ever.

As of June 30, 2022, the company had 274 active clients.

The company has received no objection letter from the stock exchange for the merger of Mindtree and L&T Infotech. The merger is on the way to regulatory approvals. According to Debashis Chatterjee, the synergies between Mindtree and LTI are already producing results and this quarter has allowed them to win a large deal from a large European-based travel technology company.

 

On 13th July 2022, the shares of Mindtree closed at Rs. 2900.60. Next day the opening price was Rs. 2960. The stock hit an intraday high of Rs. 2961. Currently, the shares are trading at Rs. 2771, down by 129.80 points or by 4.55%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indigo to “rationalise” salaries of technicians following mass sick leave.

Loan growth, higher margins, and lower costs to drive bank bottom lines in Q1.

NBFCs and HFCs securitization volumes almost doubled.

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Anthropic Reaches $3 Billion in Revenue During AI Surge!
Business, Editorials, Equities, Market News, Markets, Result Updates - July 15, 2022

Anand Rathi Wealth Q1 Results: Net profit up 34% to Rs 40 cr; revenue rises 36%.

 

Anand Rathi Wealth Q1 Results: Net profit up 34% to Rs 40 cr; revenue rises 36%.

On 12th July 2022, Anand Rathi Wealth reported a net profit of Rs. 39.7 crores for the Q1 FY23. The net profit was up by 33.6% as compared to the net profit of Rs. 29.7 crores in Q1 FY21. This was due to the addition of new clients and strong net flows. The net profit improved by 16% QoQ which was Rs. 34 crores. Net Flows for the quarter stood at Rs. 1,355 crores, up by 395% over same the period last year.

The company’s revenue rose by 35.7% YoY to Rs. 133.5 crores. The revenue during Q1 FY21 was Rs. 98.4 crore. The revenue was up by 17% QoQ to Rs. 110 crores.

The company has recorded strong growth for the June quarter despite challenging market situations.

The Asset Under Management (AUM) of the company for this quarter stood at Rs 32,961 crore, up by15% YoY and 0.27% QoQ. During Q1FY21 and Q4 FY22 the Asset Under Management was Rs. 27,887 crore and Rs. 32,054 crores respectively.

The total operating expenses have increased from Rs. 7067.24 lakhs to Rs. 8062.03 lakhs as compared to the previous quarter. The operating cost is up by 40.3% YoY. This was majorly due to higher employee expenses and fixed costs.

The employee expenses were up from Rs. 52 crores to Rs. 60 crores on a QoQ basis.

Mostly the RM’s expenditures or the provisioning are linked to the revenue. If you look at the revenue, it is in terms of percentage, there is hardly any change. Last year employee benefit expenses were about 45% and it is in the same range even in this financial year. So at the absolute number, it looks higher. But compared with the revenue number in terms of percentage, it is more or less the same.

There was an increase in fixed cost by 17% YoY, because now since offices are running and administrative expenses, business promotional expenses and all have come on track. So this was the normal operating first quarter post-COVID era.

The PBT margin for this quarter is 39.6% as compared to the last quarter (40.2%).

For the June quarter, the return on equity is 42.3%, and for Q1 FY22 and Q4 FY22, 44.3% and 39.8% respectively.

The Earning Per Share for this quarter is Rs. 9.5. The active clients increased 17.4% to 7,477.

 

Anand Rathi Wealth, got listed in December. The company operates in the financial services industry with a focus on mutual fund distribution and the sale of financial products.
The company started its activities in fiscal 2002 and is a registered AMFI (Association of Mutual Funds of India) mutual fund distributor.

Currently, the stock is trading at Rs. 639.45. The share price went down by 9.95 points or by 1.52% as compared to the previous close of Rs.649.45. On 15 July 2022, the stock opened at Rs. 653. The shares hit an intraday high and low of Rs. 655.65 and 638 respectively. The company’s market cap is Rs. 2661 crore.

 

 

 

 

 

 

 

 

 

 

 

 

 

LIC plans to sell RCap bonds worth Rs 3,400 crore hit another roadblock.

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Bharti Airtel Stock Hits Fresh 52-Week High on Strong Market Momentum
Markets, Result Updates - July 15, 2022

Spandana Spoorty: Q4FY22 result update

Spandana Spoorty: Q4FY22 result update.

Spandana Spoorty, a microfinance company, posted its March 22. The firm witnessed a 50% jump in PAT at Rs. 75 Cr. for the quarter ended in March 2022 compared to Rs. 49.3 Cr in March FY21. The firm’s consolidated total income was Rs. 1480 crore, up from Rs. 1505.6 crore in FY21 YOY. The total expenses for the company grew from Rs. 723 Cr. in FY21 to Rs. 1141 Cr. in FY22 YOY. The delay in publishing the results is due to management-level issues.

FY22 was an action-packed year for the company, starting with eliminating operational inefficiency and rolling out Vision 2025. The remedial measures included: i) appointing an experienced core team manager; ii) settling disruptions with the former MD and CEO by paying a one-time amount. iii) reorganising business processes in accordance with new RBI guidelines. iv) developing Vision 2025 with an ROA  of at least 4.5% and an ROCE of at least 20%.

Q1FY23 has witnessed an improvement in collection efficiency and asset quality. AUM growth continued to remain weak due to changes in the management team and stood at 6,581CR, which was 19% down YOY. The borrower base fell from Rs. 26 Cr. in Q3FY22 to Rs. 24 Cr. in Q4FY22. The average ticket size grew to Rs. 28,000 in Q4 compared to Rs. 25,849 in the previous quarter. The cost/income ratio increased to 69.8 in Q4 from 41.3 in FYQ3. due to the transition cost towards rocess of 40Cr. to the prior MD and CEO. AUM per branch moderated to 5.9Cr in Q4Fy22 due to muted disbursement. The asset quality deteriorated. GNPL was at 15.0%, NNPL was at 6.0% and PCR (Provision Coverage Ratio) was at 60.0% compared to 49.9% in Q3FY22. The liquidity for the company was adequate with Rs. 728 Cr in cash and cash equivalents for March 2022.

The microfinance industry is well poised to grow 4x over the next 8 years, helped by strong macro winds and economic growth. The company has a coverage of 24% in the rural areas and has a potential to cover 76.6%. The new MFI regulation will also help the company to accomplish its goals with new policy introduced. The firm intends to take a calibrated move in their refinements for new process and new products. 

The management expects AUM to reach Rs. 15000 Cr by FY2025.The company has identified 7 additional states with favourable factors for a quick surge in the microfinance book and places to grow organically in the existing states. The new states will avoid concentration and provide a paperless experience to their clients. As per the new plan, there will be approximately 1,500 branches; employee count will be around 12,500–13000; AUM/branch will be 10Cr. and 4 lakh loan clients and intends to have a secured 10%–15% secured book comprising of LAP, housing loans, gold loans etc.

The microfinance company is all set to meet the aspirations of rural India with a 2000CR–3000CR opportunity. Many analysts are bullish on the stock and expect it to be in the Rs. 500-Rs. 540 range by September 2023. The stock is currently trading at Rs.410 and has a market cap. of Rs.2,877Cr. The share price is down from its high of Rs. 727.40. The script opened at Rs.405 on Friday and touched an intraday low of Rs.403.

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