Menu

Research

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.

, , , , 0 Comment
Read More
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.

, 0 Comment
Read More
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.

, 0 Comment
Read More
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.

, , , 0 Comment
Read More
Clean Fanatics Raises $2M to Transform Home Services
Markets, Result Updates - July 14, 2022

Delta Corporation's net sales at Rs.250.27Cr.

Delta Corporation’s net sales at Rs.250.27 crore.

Delta Corp., an online casino company, reported a net sale of Rs.250.27 Cr. in Q1 FY23, up by 229.81% from Rs. 75.87 crore in June 2021. The company posted its highest ever revenue on June 22. The Quarterly Net Profit was at Rs.57.13 crore in June 2022, up 297.48% from Rs.28.93 crore in June 2021. EBITDA stands at Rs.93.56 crore in June 2022, up 550.46% from Rs.20.77 crore in June 2021. EPS increased to Rs. 2.14 in Q1FY23 from Rs. 1.08 in June 2021.

The derivative contracts for Delta Corp. have crossed 95% of MWPL and has been ban period by the stock exchange. It was explained that members can trade in the derivative contracts only to decrease their positions through offsetting them. Any increase in the number of open positions will result in appropriate penal and disciplinary action. No fresh positions were allowed for any of the F&O contracts in that particular stock when it was under the F&O ban period. As per the latest report, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together hold 90lakh shares of Delta Corporation.

The stock, after a correction, took support near Rs.160 and consolidated in the range of Rs.170–Rs.180. This gives the buyers a good opportunity to hold the stock. The decline was witnessed due to COVID-19 pandemic, lock downs, and travel restrictions which forced them to shut down their operations for several months. Meanwhile, Indian indices on Wednesday opened on a flat note due to mixed cues. The small-cap stock has fallen 5.85% in one year and lost 30.69% since the start of this year. The market cap for this company is Rs.4,777.90 Cr.

The casino company declared a dividend of Rs.1.25 per share. The stock closed at Rs.177.70 and was down by 2.40 points, or 1.33%, on Wednesday.

Stemrobo eyes global expansion, targets to close FY23 with net revenue worth Rs. 70 crores.

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

HCL delivers a less than expected result.

, , , 0 Comment
Read More
Avenue Supermarts’ profit jumps 490% to Rs.680Cr. in Q1.
Equities, Markets, Result Updates - July 11, 2022

Avenue Supermarts’ profit jumps 490% to Rs.680Cr. in Q1.

Avenue Supermarts’ profit jumps 490% to Rs.680Cr. in Q1.

The operator of Dmart stores, Avenue Supermarts declared a PAT of Rs.679.64Cr. in Q1FY23. The company has shown a jump of 490% from to Rs. 680Cr. in Q1 from Rs.115.13Cr. YOY. The growth is however one-sided from a low base effect because of ongoing Covid-19 effects. The firm also recorded a 94% rise in its revenue from operation at 9,806Cr. which was Rs.5,301.74Cr in Q1FY22. EBITDA stood at Rs.1008Cr. which was at 221Cr. in previous year same quarter. EBITDA margin stood at 10.3% in Q1FY23 which was at 4.4% in Q1FY22.

For Q1FY23, Avenue Supermarts reported a consolidated Income of Rs.10067.21Cr. from Rs.8819.02Cr. in the prior year’s corresponding quarter. Net Profit of Rs.642.89 Cr. is recorded in the latest quarter compared to Rs.427Cr. in the previous quarter. The EPS is now at Rs.9.93 which was at Rs.6.59 in March quarter.

Dmart opened 110 new stores in the last three years, one of the largest additions in Q1FY23 and the largest since Q4FY20. They have added a total of 29 stores and are on target to meet 60 additions (over 2020-2022). These stores didn’t operate to their full potential because of the ongoing Covid-19 crisis. As per Noronha, CEO of Avenue Supermarts, the new stores have better design and high capacity to handle large-scale revenue. Since it was the first quarter without any pandemic disruptions, new stores have delivered good results in the current quarter.

Despite decent results, few analysts are bearish on the stock and have given a sell rating.  Due to slowdown in the economy, exchange rates volatility. Avenue Supermarts’ revenue continues to improve; the category sales remain below pre-pandemic levels. Based on the clarification by the managment, we forecast a more significant contribution from apparel & footwear.

The online portal of Avenue Supermarts, DMart-Ready is operational in 12 cities. They are assessing feedback from customers to enhance their quality and presence across the country. There is no additional update on the app.

The stock closed at Rs.3986.85 on Monday, after quarterly results were announced on 9th July 2022. The stock gained 45.15 points and was up by 1.15%. The Market Cap of Avenue Supermarts is at Rs.258213 Cr.

Adani Wilmar enters the coveted large-cap category by AMFI

TCS profit misses estimates as recession fears hit IT spending.

, , , 0 Comment
Read More
India’s Data Center Doubling by 2026: What It Means for Infrastructure Investors
Equities, Markets, Result Updates - July 11, 2022

TCS profit misses estimates as recession fears hit IT spending.

TCS profit misses estimates as recession fears hit IT spending.

On 8th July 2022, TCS announced the financial results for April-June 2022 quarter.
Tata Consultancy Services reported net income of Rs. 94.8 billion . While analysts predicted a net profit of Rs. 99.04 billion. Revenue from operations increased by 16% to 527.6 billion rupees and up by 4.3% QoQ to Rs. 52,758 crore during Q1FY23. However the operating profit margin slipped by 23.1% as against 25% in the previous quater. This was due the wage hikes and and the continued rationalisation of employee costs amid high attrition. The company recorded 5.2% rise in consolidated net profit at Rs. 9,478 crore on YOY basis.
The company has declared dividend of Rs. 8 per share. It will be credited by August 3, 2022, and the record date for the is July 16.
The Indian shares fell on Monday, as IT services major Tata Consultancy Services reported weak results last week.
On 11th July 2022, TCS share price opened lower at Rs. 3,226.15, while the previous closing price was Rs.3,265.45 on the BSE. The stock hit a high of Rs. 3116.40 and dropped by 4%. Currently the stock price is Rs. 3119.70 and down by 145.75 points or 4.46%. The market cap of TCS is Rs. 1,141,514 crore.

Most of the analysts have now revised downward TCS’s earnings estimates, due to fear of potential U.S. recession, forex volatility, and continued supply-side challenges. On the other hand, the company’s management is optimistic about future growth. According to the management the demand for technology remains ‘robust’. And the company has also not seen any footprint of the recession on the demand side. According to the chief executive officer and managing director Rajesh Gopinathan the company is seeing steady demand from immediate conversations with the customers. And the company is constantly polling to see if there are any early indications of softening .

The shares of TCS traded over the counter worth Rs. 15.9 crore i.e 0.5 lakh shares , compared with a two-week average volume of 0.76 lakh shares. The BSE Sensex was trading 324 points lower at 54,158 levels.

The shares of TCS traded lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. TCS has recorded negative return of 2.5% in the past one year. This led to the underperformance of the BSE Sensex by 6%. The large cap stock is 3% away from its 52-week low of Rs.3,023.35 touched on June 17, 2022. The IT major hit a 52-week high of Rs. 4,045.50 on January 18, 2022.

 

TCS profit misses estimates as recession fears hit IT spending.
Image shown is for representation only.

 

RBI expects Inflation to cool from October.

, 0 Comment
Read More
SBI Card Q2FY24 results updates
Research - May 8, 2020

SBI CARDS Q4FY20 Result Highlights

SBI CARDS Q4FY20 Result Highlights

SBI cards declared their quarterly results for Q4 FY20. Here are the details:

Excess provisions has impacted the Q4FY20 earnings of SBI Cards. Although, the asset quality has improved. Net Interest Income saw an improvement by 50% this year. It increased to Rs 10.1 billion at a growth of 8% since last quarter. The PAT declined by 66% YoY to Rs 835 million which is a 81% cut down from last quarter. It is largely led by one-time Rs 4.9 billion COVID-19 provisioning and moratorium.

 

The provisions increased by 138% to Rs 8.3 billion. It was twice the estimated amount. This is a 123% increase since last quarter led by Rs 4.9 billion provisioning related to COVID-19. The operational Expenditure Opex was up by 15% at Rs 12.3 billion which declined by 3% compared to last quarter.

 

SBI CARDS Q4FY20 Result Highlights

Outstanding on cards increased by 28% to Rs. 10.5 million. Gross NPAs improved by 43 basis points to 2.01% compared to previous year. The market share was up by 18.2%. It improved by 68 basic points. The spends was also up by 77 basic points at 17.9% till January 2020.

 

The Pre-provision operating profit saw a growth at 29% to Rs 9.5 billion. It declined by just 1% since last quarter. The receivables also increased by 30% to Rs. 241.41 billion. Spends was Rs 1,309.15 billion which increased by 27%. The recommendation on this stock is to buy with a target price of Rs 724.

0 Comment
Read More
Bank of Baroda Q2 FY26: Strong Loan & Deposit Growth but Profit Softens on Lower Other Income
Research, Result Updates - February 14, 2020

Bank of Baroda disappoints in Q3FY20. Rs 1407 Crore Loss Posted

Bank of Baroda Q3FY20 Financial Results Bank of Baroda (BoB) released their third-quarter results for the period of October – December of the financial year 2020(FY20). The bank which is...
, , 0 Comment
Read More
IndusInd Bank Facing Investigation, Assessing the Impact on Shareholders
Research, Result Updates - February 14, 2020

IndusInd Bank Q3FY20 financial results

IndusInd Bank Q3FY20 financial results IndusInd Bank released its third-quarter financial results of the period under October-December of the financial year 2020. The bank is one of India’s latest new...
, , 0 Comment
Read More