PFC Withdrawals May Impact Zero-Coupon Bond Market

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 21, 2023

Robust Loan Book Growth and Strategic Lending Drive PFC's Stellar Q2FY24 Results

Robust Loan Book Growth and Strategic Lending Drive PFC’s Stellar Q2FY24 Results

Company Overview:

PFC Ltd is a government Non-deposit-taking NBFC company primarily focused on providing finance to the power, logistics, and infrastructure sectors. Additionally, it offers consultancy services to the power sector, facilitating the development of ultra mega power projects and independent transmission projects.

Strong Loan book growth – 19% QoQ & disbursement grew 2.5x

In Q2FY24, PFC achieved an impressive 19% QoQ growth in its loan book, reaching 4,50,000 Cr as of September 30, 2023. The YoY growth is noteworthy, driven by a consistent increase in disbursements, particularly in H1FY24, where disbursements grew 2.5x compared to the previous year, standing at around 55,500 Cr. This growth is primarily attributed to lending in the distribution sector and towards renewable energy projects.

Yield expansion moderate, while rise in funding cost pull down margins

The yield in H1FY24 stood at 9.92%, showing a moderate 7bps increase from Q1FY24. However, a simultaneous 11 bps rise in the cost of funds to 7.41% led to a 3.11% YoY decline in Net Interest Income (NII) (+6.44% QoQ). Despite this, the Net Interest Margin (NIM) for the quarter stood at 3.37%, and the interest spread at 2.51%, both within the company’s target range.

Asset quality improved & CRAR sustained above 24% reflect strong capital position

Maintaining the highest level of asset quality, PFC added no new NPA in the last six years, with an NNPA ratio standing at 1%, the lowest in six years. GNPA levels have also decreased from 4.75% in H1FY23 to 3.67% in H1FY24. As of September 2023, the Capital to Risk (Weighted) Assets Ratio (CRAR) stands at a robust 24.86%, marking a 57 bps increase from Q2FY23 levels.

Hedging portion has improved to minimise exchange risk – INR depreciation

PFC has enhanced its hedging strategies, minimizing exchange risks associated with INR depreciation. The company booked a foreign translation loss of Rs 119 Cr in Q2FY24, with 83% of the foreign currency portfolio hedged for exchange risk, compared to 68% in Q2FY23. Additionally, 100% of U.S. dollar exposure maturing in the next five years has been hedged.

On going projects worth INR 16,497 Cr in stage 3

Presently, the company has 22 stressed projects in stage 3, totaling INR 16,497 Cr. Notably, 13 projects worth INR 13,899 Cr have been successfully resolved under NCLT. Two projects in advanced stages include the Lanco Amarkantak project and the Dans Energy project, with resolution plans finalized and documentation processes underway.

Late Payment Surcharge (LPS) Scheme: Bolstering Financial Discipline in Discoms

In the realm of government initiatives, the Late Payment Surcharge (LPS) scheme spearheaded by the company has made significant strides. With a sanctioned corpus of 70,500 Cr, an impressive 31,500 Cr has already been disbursed. Notably, this scheme has achieved remarkable success, evidenced by a substantial 50% reduction in legacy dues owed by discoms to generation companies. Moreover, it has facilitated the clearance of current dues, thereby enhancing the financial discipline of discoms. The LPS scheme emerges as a pivotal instrument in fostering fiscal responsibility among discoms.

Revamped Distribution Sector (RDSS): Catalyzing Modernization and Financial Health

On another front, the Revamped Distribution Sector (RDSS) stands as a testament to the company’s commitment to modernizing discoms and fortifying their operational efficiencies and financial health. Aligned with the national electricity plan, which envisions approximately 33 lakh Cr of investments in the power sector by 2032, the RDSS is strategically positioned. As a key player, the company is actively contributing to this vision, ensuring that discoms evolve into robust entities capable of meeting the challenges of the evolving energy landscape. The RDSS is a holistic approach toward the sustainable development of the power sector.

Medium to Long-Term Growth Outlook: Tapping into a Multifaceted Opportunity

Zooming out to assess the broader landscape, the medium to long-term growth outlook reveals a vast opportunity for the company. As per the national electricity plan, a staggering 33 lakh Cr of investments are slated for the power sector by 2032. PFC currently holds the mantle as the largest lender for the renewable sector, having bolstered 25% of the current installed renewable capacity. With an eye on the future, the company anticipates maintaining this significant share in energy transition financing within the power sector. This foresight positions the company as a pivotal player in driving sustainable growth and development.

Striving for 500 Gigawatts by 2030: PFC’s Ambitious Renewable Energy Vision

Looking ahead, PFC is steadfast in its commitment to achieving a monumental milestone – 500 gigawatts by 2030. Currently boasting a formidable 187 gigawatts, the company has already disbursed a substantial 1 lakh Cr in funding to the renewable sector, commanding a noteworthy 25% market share in the current installed renewable capacity. The ambitious pursuit of 500 gigawatts underscores PFC’s pivotal role in steering the renewable energy trajectory. As a stalwart in the sector, the company is poised to play a pivotal role in shaping the future of renewable energy in the country.

Valuation and Key Ratios

Currently company Trading at 1.14x of its book value at Rs 283 per share at current market price 320. PFC’s trailing twelve months ROE and ROCE stand at 20.4% and 9.08%, respectively. The Interest Coverage Ratio at 1.58x reflects the company’s solvency.

Q2FY24 Result Highlights: Standalone

➡️ In Q2Y24, Interest income grew 12.1% YoY (+5.6% QoQ) to 10,692 Cr while interest expenses grew 22.5% YoY (+5.1% QoQ) to 6,963 Cr

➡️ As a result, NII grew 6.4% QoQ but declined 3.1% YoY to 3,729 Cr due to higher cost of funds.

➡️ Other income grew 101.1% YoY and 60x QoQ to 1,096 Cr includes dividend income of 1,074 Cr and fees & commission income of 20.3 Cr.

➡️ PPOP increased by 22.6% YoY (+27.6% QoQ) to 4,686 Cr supported by operating leverage benefit and healthy growth in other income.

➡️ PAT surged 28.3% YoY (+27.9% QoQ) to 3,847 Cr, supported by lower provisions, operating leverage benefit, and robust growth in other income.

➡️ EPS for the quarter stood at 11.6 Rs, a significant improvement from the previous quarter 9.1 Rs and Q2FY23.

conclusion

PFC Ltd demonstrates robust financial performance with significant loan book growth, prudent asset quality management, and strengthened hedging strategies. Despite a margin challenge, the company maintains a healthy capital position. The successful resolution of stressed projects and impressive Q2FY24 results further underscore PFC’s resilience and strategic positioning in the non-deposit-taking NBFC sector.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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Rapido vs Ola-Uber: How a Bike Taxi Startup Disrupted India’s Ride-Hailing Market

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 20, 2023

Navigating the economic landscape: India's growth trajectory amidst key risks

Navigating the economic landscape: India’s growth trajectory amidst key risks

Introduction:

Driven by positive global trends and timely investments in energy and technology, India is expected to overtake Germany and Japan to become the world’s third-largest economy by 2027 and hold the third-largest stock market by 2030.

India’s economy has grown at the highest rate in the world over the last ten years, with an average GDP growth rate of 5.5%. This indicates that India’s economic might has been on an impressive upward trajectory. Global offshore, digitization, and the energy boom are three disruptive factors that are coming together to provide India a once-in-a-lifetime chance to boost economic growth and enable its billion-plus population to live in greater prosperity.

By 2031, India’s GDP may have surpassed $7.5 trillion, more than doubling from its current $3.5 trillion level. India is expected to become a major player in the global economy. If India’s share of global exports doubles, it would mean that the country is exporting twice as many goods as it is today. This would be a major boost for India’s economy, and it would create many new jobs for Indian workers. In the upcoming years, the market value of the Bombay Stock Exchange could reach $10 trillion, with an expected 11% annual growth. This would be a major development for India’s financial sector, and it would make the country a more attractive destination for foreign investment.

Boosting India’s production share in global markets:

India has the potential to become a global manufacturing powerhouse. The country has a large pool of young, talented workers, and it is making significant investments in infrastructure and education. As a result, India is becoming increasingly attractive to multinational companies looking to set up manufacturing operations. This could lead to a significant boost in India’s share of global manufacturing exports.

Increasing credit availability: In recent years, India has made tremendous success in increasing credit availability, and this trend is projected to continue. This will make borrowing money easier for businesses, resulting in higher investment and job growth.

Starting a new business: India is a hive of entrepreneurial activity, and this trend is likely to continue in the coming years.

Improving Life Quality: The quality of life for Indians is predicted to increase as the country’s economy grows.

Driving a boom in consumer spending: Indian consumers are anticipated to spend more money as their standard of living improves. This will increase demand for products and services, hence stimulating economic growth.

India is expected to experience significant economic growth in the coming years, with an annual output growth of over $400 billion from 2023 onwards. This growth will rise to over $500 billion annually after 2028, India is poised to become a global economic leader, playing a significant role in shaping the global economic landscape.

Global Offshoring Builds a Global Workforce

Companies have been outsourcing various services, including software development, customer service, and business process outsourcing (BPO), to India for many years. This trend was initially driven by India’s lower labour costs and availability of skilled professionals. However, recent factors, such as tighter global labour markets and the rise of distributed work models, are renewing interest in India as a global outsourcing destination.

India is also on route to become the world’s factory, due to corporate tax cuts, investment incentives, and infrastructure spending, which are driving capital investments in manufacturing.

The confidence of global firms in India’s investment prospects is at an all-time high. Optimism among multinational corporations (MNCs) regarding investment prospects in India’s manufacturing sector has reached an unprecedented high. These positive trends are driving projections of a substantial rise in manufacturing’s share of India’s GDP, from the current 15.6% to 21% by 2031. Simultaneously, India’s export market share is expected to double during this period, further cementing its position as a global manufacturing powerhouse. Manufacturing’s proportion of GDP in India might rise from 15.6% to 21% by 2031, more than doubling India’s export market share.

Key risks to India’s economic growth:

1.Prolonged Global Recession:

The Indian economy is highly dependent on global demand for exports, and a prolonged global recession might have a severe influence on its growth prospects. If large countries such as the United States and Europe face a lengthy slump, demand for Indian goods and services may fall, resulting in decreased exports and slower economic growth.

2.Unfavourable Geopolitical Developments:

India is prone to geopolitical tensions and conflicts because of its geographical location in a politically volatile region. Instability and violence in a region can disrupt trade, raise security concerns, and discourage foreign investment. These elements have the potential to destroy the Indian economy, making it more difficult for businesses to plan and invest.

3.Domestic Policy Fluctuations:

Domestic policy changes in India, such as taxation, labour legislation, and environmental restrictions, can have a substantial impact on the investment climate and business environment. Unpredictable or unfavourable policy changes can discourage foreign investment and make commercial operations onerous, stifling economic progress.

4.Lack of Skilled Labor:

India’s rapid economic expansion has resulted in an increase in the demand for skilled labour, but the country’s education system is not yet completely prepared to meet this demand. This skilled labour shortage can limit the growth of some industries and make it difficult for firms to find the expertise they need to compete globally.

5.Energy Shortages:

India is a net energy importer, and rising global energy prices could put a pressure on the country’s economy. Energy scarcity can also cause power outages and disruptions in industrial production, weighing on economic growth.

6.Commodity Volatility:

The Indian economy is subject to commodity price movements, particularly oil prices. Rising oil prices can raise India’s import bill and add to inflationary pressures. Commodity volatility can also make it difficult for firms to plan ahead of time.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Adani Group Stocks Rally on SEBI Relief, Investors Watch Pending 22 Orders for Clarity

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 20, 2023

Adani Wilmar navigated edible oil price fluctuations in Q2FY24, maintaining a balance between volumes and revenue.

Company Overview:

Adani Wilmar operates in the FMCG sector, focusing primarily on edible oils and food & other FMCG segments. The company also plays a vital role in industry essential segments such as castor, oleo, and de-oiled cake. Well-known brands under the company’s umbrella include Fortune, King’s, Kohinoor, Charminar, Jubilee, etc. As of Q2FY24, the company boasts a direct reach to over 6.5 million outlets, covering 26,500+ rural towns, indicating an aggressive expansion strategy in rural areas for future growth. Adani Wilmar owns 23 manufacturing units and leases 38, with a total refining capacity of 5.5 million tonnes and a food capacity of 0.9 million tonnes per annum.

Market leader in Edible oil – 19.6% market share

As of September 2023, Adani Wilmar holds the highest market share of 19.6% in the edible oil sector, securing a position in the top 3 for all edible oils, including Soyabean, Sunflower, Palm, Mustard, and Ricebran. The company also stands at the second and third positions in wheat flour and basmati rice, with market shares of 5.15% and 7.40%, respectively. Despite a slight dip in basmati rice market share from 9.4% in Q2FY23 to 7.4% in Q2FY24, wheat flour has seen a gain of 15 basis points, reaching 5.15% in Q2FY24.

Volumes were higher YoY for all segments, revenue was impacted by the decline in edible oil prices:

While Q2FY24 witnessed an 11% YoY growth in volumes (with a minor 2% QoQ dip to 1.5 MMT), revenue experienced a 13.3% YoY decline and a 5.1% QoQ decrease, amounting to INR 12,267 Crores. The decline in edible oil prices in Q1FY24 and Q2FY24 contributed to a 19.4% reduction in revenue for the edible oil segment. Despite a 3.7% YoY growth in volumes (and a 4.5% QoQ decline), the edible oil segment revenue reached INR 9,037 Crores. Conversely, the food & FMCG segment saw a 26.4% YoY revenue growth (16.9% QoQ) to INR 1,283 Crores, while the industry essentials segment experienced a 1.7% YoY increase but a 1.9% QoQ decline, reaching INR 1,947 Crores.

Valuation and Key Ratios:

Adani Wilmar is currently trading at a multiple of 206x EPS(TTM) at a market price of INR 291, while the industry PE stands at 33.6x. The company’s trading value is 4.75 times its book value, amounting to INR 61.3 per share. The return on equity is at 7.4%, and the return on capital employed stands at 15%. In the EV/EBITDA multiple, Adani Wilmar holds the third position among top peers, with a multiple of 25.4x. In Q2FY24, the interest coverage ratio stood at 0.22x due to a high debt of INR 220 Crores, indicating lower solvency while EBIT stood at only INR 48 Crores.

Q2FY24 Results Updates: Consolidated

➡️ In Q2FY24, revenue declined by 13.3% YoY (-5.1% QoQ) to INR 12,267 Cr, impacted by a correction in edible oil prices. However, volumes grew by 11% YoY (-2% QoQ) to 1.5 MMT.

➡️ EBITDA witnessed a 10.1% QoQ growth but declined by 43.4% YoY to INR 144 Cr. The EBITDA margin stood at 1.17%, contracting by 62 bps YoY and expanding by 16 bps QoQ.

➡️ Operating Profit (EBIT) grew by 29.9% QoQ but declined by 70.7% YoY to INR 48 Cr. The EBIT margin expanded by 10 bps QoQ but contracted by 77 bps YoY, reaching 0.39%.

➡️ PBT was at INR -172 Cr, impacted by higher interest costs of INR 220 Cr (34.8% YoY/29% QoQ).

➡️ PAT grew by 65.6% QoQ but declined by 368.1% YoY to -INR 130.7 Cr due to poor revenue growth and higher interest costs. Earnings Per Share (EPS) for the quarter stood at -INR 1.01 (PQ -0.61 Rs).

Conclusion:

Adani Wilmar, a prominent player in the FMCG sector, faces challenges with a YoY decline in revenue primarily attributed to the correction in edible oil prices. Despite volume growth and a strong market position in edible oils, the company grapples with higher interest costs impacting profitability. Investors should monitor the company’s efforts to navigate market dynamics and manage debt levels for sustainable growth in the future.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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Port of Los Angeles Records Significant Drop in Imports Due to U.S. Tariff Impact

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 10, 2023

Strategic Focus on Agri Exports Drives Seacoast's Q2 Revenue

Strategic Focus on Agri Exports Drives Seacoast’s Q2 Revenue

Company Overview:

Seacoast Shipping Services Ltd has emerged as a key player in the freight forwarding and shipping agent industry, particularly in Gujarat. The company specializes in providing comprehensive logistics solutions to exporters and importers, with a strategic focus on Agri export commodities via containers from Mundra port. Additionally, Seacoast has diversified into offering specialized project transportation services, achieving significant market prominence in Gujarat and securing a notable 10.68% market share.

Robust Growth in EBITDA (+88.8% YoY) driven by Operating efficiency

In Q2FY24, the company witnessed an impressive 88.8% YoY growth in EBITDA, reaching 10.7 Cr, driven by enhanced operating efficiency. Notably, employee costs saw a substantial 94.3% YoY reduction (-93.8% QoQ) to 0.02 Cr, a stark contrast from 0.43 Cr in Q2FY23 and 0.39 Cr in the previous quarter. This reduction in operating expenditure contributed to a significant increase in EBITDA margins, up by 367 bps YoY (+122 bps QoQ) to 8.84% (PQ-7.62).

ROE declined 182 bps QoQ but ROA expanded 63 bps QoQ in Q2

As of September 30, 2023, total equity exhibited a robust QoQ growth of 98.8%, reaching 123.21 Cr. This growth includes a 60% QoQ increase in equity share capital and a substantial 145% QoQ surge in reserves and surplus. As a result Despite a 98.5% growth in PAT in Q2FY24, the ROE experienced a 182 bps QoQ decline, standing at 6.27%. In contrast, the ROA expanded by 63 bps QoQ to 3.93%, driven by a 54% QoQ growth in PAT.

Operating Efficiency Boosts Margins in Q2

Q2FY24 witnessed a noteworthy decline in total operating expenditure, decreasing by 42.4% YoY (-62.5% QoQ) to 0.30 Cr. Within operating expenses, employee costs saw a substantial reduction of 94.3% YoY (-93.8% QoQ) to 0.02 Cr, while other expenses grew by 174% YoY and declined by 33.5% QoQ. Consequently, EBITDA margins expanded by 367 bps YoY (+122 bps QoQ) to 8.84%, and PAT margins grew by 282 bps YoY (+133 bps QoQ) to 6.36%.

Valuation and Key Ratios:

Seacoast is currently trading at a multiple of 9.23x EPS (TTM) and 0.37 at the current market price of 3.45, with the industry PE standing at 10.8x. The stock is trading at 1.51 times the book value of 2.29 Rs per share. In the EV/EBITDA multiple, the stock holds the 4th position among the top 7 peers at 6.71x, with the median at 7.52x. Despite a 182 bps QoQ decline in ROE to 6.27%, the ROA experienced a positive shift of 63 bps QoQ to 3.93%. The interest coverage ratio stands at a robust 13.9x, indicating the company’s strong solvency.

Q2FY24 Results Updates:

➡️ Revenue showed a commendable 10.4% YoY growth (+21.7% QoQ), reaching 121.42 Cr in Q2FY24.

➡️ EBITDA surged 88.8% YoY (+41.3% QoQ) to 10.73 Cr, driven by operational efficiency.

➡️ Operating expenditure reduction, particularly in employee costs (-94.3% YoY, -93.8% QoQ), contributed to the expansion of EBITDA and PAT margins by 367 bps YoY and 282 bps YoY, respectively.

➡️ PAT experienced a substantial 98.5% YoY growth (+54% QoQ), reaching 7.72 Cr due to top-line growth and operating efficiency

➡️ EPS for the quarter stood at 0.16 Rs (PQ-0.15 Rs), declining 86.2% YoY but growing by 6.67% QoQ.

Conclusion:

Seacoast Shipping Services Ltd has demonstrated robust financial performance in Q2FY24, marked by substantial growth in EBITDA, PAT, and operating efficiency. Despite a slight decline in ROE, the company has maintained strong solvency with a healthy interest coverage ratio. The stock’s current valuation, trading at 9.23x EPS and 1.51 times book value, positions it competitively within the industry. Overall, Seacoast Shipping Services Ltd continues to be a key player in the freight forwarding and shipping agent industry, showcasing resilience and adaptability in a dynamic market.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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HUDCO Q3FY25 Results Update: Robust Performance Drives Strong Growth

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 7, 2023

Fusion Micro Finance AUM Surpasses 10,000 Cr in Q2FY24

Company Overview:

Fusion Micro Finance, India’s leading NBFC-MFI, boasts a robust presence with 1,164 branches spanning 22 states and 3 union territories as of September 30, 2023. The company’s primary mission is to empower underserved and unserved women entrepreneurs in rural areas through microfinance, offering small-value collateral-free loans and MSME loans. Notably, the company expanded its reach by adding 61 new branches, reaching a total of 1,164 branches, and welcoming 2.4 lakh new clients in Q2FY24.

Consistent AUM & Disbursement growth – 24.6% YoY/ 14.2% YoY

In Q2FY24, Fusion Micro Finance achieved remarkable milestones, with its Assets Under Management (AUM) surpassing 10,000 Crores to reach 10,026 Crores, reflecting a YoY growth of 24.6% and a QoQ increase of 3.24%. Concurrently, disbursements amounted to 2,344 Crores, growing 14.2% YoY and 2.5% QoQ. The company also witnessed a 15.6% YoY growth in active borrowers, reaching 36.9 lakhs in Q2FY24, compared to 31.9 lakhs in Q2FY23.

NIMs expand 91 bps YoY (+23 bps QoQ) driven by stable CoB at 10.6% in Q2

Fusion Micro Finance displayed a remarkable financial performance, with Net Interest Income (NII) growing 26.1% YoY and 3.5% QoQ to reach 306 Crores. Notably, the Net Interest Margins (NIMs) expanded by 23 bps QoQ and an impressive 91 bps YoY to stand at 11.1%. This expansion was driven by a stable Cost of Borrowing at 10.6%. The Cost-to-Income ratio decreased by 11 bps YoY but increased by 15 bps QoQ to 36.41%. The company also recorded a growth of 140 bps in the Yield on Loans, reaching 21.7%.

Asset Quality Improved & Strong Capital Position (CCRA-28.78%)

In Q2FY24, Fusion Micro Finance showcased an improved asset quality, with a decline in Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) by 52 bps and 13 bps QoQ, respectively, resulting in levels of 2.68% and 0.65%, as compared to 3.83% and 1.12% in Q2FY23. The provision coverage ratio reached 76.39%, and collection efficiency improved by 30 bps QoQ to 97.6% in Q2FY24. The company maintained a robust Capital Adequacy Ratio of 28.78% in Q2FY24, exceeding the RBI’s guidelines of 15%.

Valuation and Key Ratios:

Currently, Fusion Micro Finance’s stock is trading at 2.17 times its book value, which amounts to 256 Rupees per share, at a market price of 575 Rupees. The company’s Return on Equity (ROE) declined by 593 bps YoY and 19 bps QoQ to 20.02%. On the other hand, Return on Assets (ROA) increased to 4.94%, up by 16 bps YoY but down by 5 bps QoQ. The Interest Coverage Ratio stood at 1.85x, indicating the company’s solvency.

Q2FY24 Results Updates:

➡️ In Q2FY24, Fusion Micro Finance experienced notable growth in interest income, which increased by 24.3% YoY and 3.8% QoQ, reaching 497 Crores.

➡️ Interest expenses also saw a YoY growth of 21.4% and a QoQ increase of 4.1% to 191 Crores, resulting in a net interest income of 306 Crores, a growth of 26.14% YoY and 3.5% QoQ.

➡️ NIMs expanded by 91 bps YoY and 23 bps QoQ to 11.1%, primarily due to a stable Cost of Borrowing at 10.6%.

➡️ Pre-provision operating profit (PPOP) grew by 29.1% YoY and 2.7% QoQ, reaching 242 Crores. Total operating expenses increased by 28.5% YoY and 3.4% QoQ, while the cost-to-income ratio declined by 11 bps QoQ.

➡️ Net profit surged by 32.2% YoY and 4.3% QoQ to reach 126 Crores, driven by stable provisions on a QoQ basis at 76.2 Crores (PQ-75.9 Cr).

➡️ Earnings per share (EPS) for the quarter stood at 12.44 Rupees, a growth of 32.2% YoY and 4.3% QoQ.

Conclusion:

Fusion Micro Finance, India’s leading NBFC-MFI, continues to demonstrate impressive growth and financial stability in Q2FY24. With a commitment to empowering underserved women entrepreneurs in rural areas, the company has expanded its branch network, increased its client base, and improved its asset quality. Notably, strong financial performance, expanding NIMs, and a robust capital position underscore Fusion Micro Finance’s resilience and potential for continued success in the microfinance sector.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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Flexiloans Bags ₹375 Cr in Series C, Targets ₹5,000 Cr AUM Within 18 Months

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 7, 2023

LTFH Shifts Focus to retail with Rapid Reduction of Wholesale Loan Book in Q2FY24

Company Overview:

LTFH, a non-deposit taking NBFC, offers a wide range of financial products and services, including 2-wheeler finance, micro loans, home loans, LAP, farm equipment finance, personal loans, and more. As of Q2FY24, the company has established a strong presence in both rural and urban areas, boasting over 1,700 branches in 200,000 villages and 150 branches in 100+ cities and towns. LTFH serves 1.46 crore customers in rural areas and 72 lakh customers in urban areas. The company is well on track to achieve its Lakshya 2026 goal of achieving over 80% retailization, with its current book mix comprising 88% retail and 12% wholesale.

Robust Growth in Retail Disbursement (32% YoY) Driven by HL/Micro Finance/Farm Equipment Financing

Retail disbursements have shown robust growth, increasing by 32% YoY (and 21% QoQ) to reach 13,499 Crores, while wholesale disbursements declined significantly by 76% YoY (and 83% QoQ) to 198 Crores. This has resulted in a 24% YoY increase in total disbursements. In the retail sector, microfinance and home loans grew by 30% YoY and 34%, respectively, while personal loans saw a 2% YoY decrease. The retail loan book stood at 69,417 Crores, reflecting a 33% YoY increase, while the wholesale loan book decreased by 75% YoY to 9,255 Crores, with the total loan book decreasing by 13% YoY (and increasing by 0.21% QoQ). Notably, personal loans and microfinance in the retail loan book reported healthy growth of 63% YoY and 37% YoY, respectively.

Rapid Reduction in Wholesale Book:

LTFH has significantly reduced its wholesale loan book, with the share of wholesale loans decreasing from 49% to 12% in Q2FY24. During this period, the wholesale loan book declined by 75% YoY and 34% QoQ to 9,255 Crores, compared to 14,035 Crores in the previous quarter. Within the wholesale loan book, infrastructure loans decreased to 6,482 Crores, and real estate loans declined to 2,773 Crores over the last three years. As of Q2FY24, the current loan book mix comprises 88% retail and 12% wholesale.

NIMS + Fee & Other Income Jumped 120 bps QoQ

LTFH experienced a significant increase in other income, growing by 83.1% YoY (and 20.4% QoQ) to reach 313 Crores, leading to an expansion of NIMs and fee & other income margins by 120 bps QoQ to 10.84% in Q2FY24, compared to 9.64% in the previous quarter. Net Interest Margins (NIMs) also expanded by 56 bps QoQ to 8.62%, driven by a 49 bps QoQ increase in yield to 15.23%.

Asset Quality Improved with Stable Provisions & Strong Capital Position (CCRA-25.16%)

In Q2FY24, asset quality showed improvement, with a decline in Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) by 16 bps and 3 bps QoQ, respectively, to 3.05% and 0.67%, compared to 3.55% and 0.88% in Q2FY23. GNPA and NNPA stood at 2,116 Crores and 452 Crores in Q2FY24, compared to 1,850 Crores and 446 Crores in Q2FY23. The provision coverage ratio remained unchanged at 79% on a QoQ basis. LTFH maintained a strong capital adequacy ratio, standing at 25.16% in Q2FY24, which exceeds the RBI guidelines of 15%.

Valuation and Key Ratios:

LTFH’s stock is currently trading at a valuation of 1.58 times its book value, which is 89.4 Rupees per share, at the current market price of 141 Rupees. The company reported robust growth in returns, with Return on Equity (ROE) improving by 109 bps QoQ to 10.81%. Return on Assets (ROA) increased to 2.42%, up by 29 bps QoQ. The Interest Coverage Ratio stood at 1.49x, indicating the company’s solvency.

Consolidated Q2FY24 Results Highlights:

➡️ In Q2FY24, Interest income grew 2.6% YoY (+1.6% QoQ) to 3,168 Cr, on back of strong 38.4% growth in revenue from retail segment, though partly offset by decline in wholesale and other business.

➡️ Interest expenses decline 7.8% YoY (-2.8% QoQ) to 1,325 Cr, reaching net interest income (NII) increased 11.8% YoY (+5.1% QoQ) to 1,844 Cr which led to increase NIMS by 56 bps QoQ to 8.62%

➡️ NIMs + Fee & other income margin expanded 241 bps YoY (+120 bps QoQ) to 10.84%.

➡️ Pre-provision operating profit (PPOP) grew 24.2% YoY (+13.4% QoQ) to 1,193 Cr driven by stable other OPEX at 515 Cr (PQ-519.9 Cr)

➡️ Net profit surged 64.9% YoY (+12% QoQ) to 594 Cr, helped by reduction in provision by 2.2% YoY. Adjusted PAT grew 64.8% YoY.

Conclusion:

In Q2FY24, LTFH demonstrated robust growth in its retail segment, with significant reductions in the wholesale loan book. The company achieved strong net interest margins and fee & other income margins, leading to improved profitability. Asset quality improved, and the company maintained a strong capital position. These positive trends resulted in a substantial increase in net profit. Overall, LTFH’s performance in Q2FY24 reflects its successful transition towards retailization and its commitment to sound financial management.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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Zomato Q3FY25: Strong GOV Growth Amid Profitability Pressures

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

Zomato's Q2FY24: Savoring success - GOV surges, Gold glitters

Zomato’s Q2FY24: Savoring success – GOV surges, Gold glitters

Company Overview:

Zomato Limited, founded in 2010, is one of the biggest online Food Service platforms in terms of food value sold. Its services include meal delivery, dining out, and loyalty programs, among others. Zomato had a significant footprint across 23 countries as of December 31, 2020, with 131,233 active food delivery restaurants, 161,637 active delivery providers, and an average monthly food order of 10.7 million clients. Zomato also operates Hyper pure, a one-stop procurement system that provides high-quality ingredients and kitchen goods to restaurant partners.

Zomato Q2FY24: GOV Up 47%, EBITDA Profitable at INR 41 Crore

Zomato’s consolidated Q2FY24 results were positive, with strong growth across key metrics. GOV (B2C business) grew 47% year-over-year to INR 11,422 crore, driven by strong growth in order volume. Adjusted revenue grew 53% year-over-year to INR 3,227 crore. Adjusted EBITDA improved significantly from a loss of INR 192 crore in Q2FY23 to a profit of INR 41 crore in Q2FY24.

The strong GOV growth was driven by increased demand for food delivery and quick commerce services. Zomato’s Gold program also played a key role, contributing to over 40% of food delivery GOV. The improvement in adjusted EBITDA margin was driven by a number of factors, including increased gross take rate, improved operational efficiency, and reduced costs. Zomato’s is focused on expanding their reach into smaller towns, increasing their customer base, and improving their operational efficiency.

Zomato Gold Soars to 3.8 Million Members, Boosts GOV by 40%

Zomato’s Gold program is shaping up very well. It has scaled to 3.8 million members within just three quarters since its launch, and these members now account for ~40% of the company’s food delivery GOV. This suggests that the program is highly popular with customers and is driving significant business for Zomato. The Gold program offers a number of benefits to members, including discounts on food delivery orders and priority access to restaurants. This makes it a very attractive proposition for customers, especially those who order food delivery frequently.
The fact that Gold members account for such a large proportion of Zomato’s food delivery GOV is a significant positive. It shows that the program is driving loyalty and repeat business among customers. This is important for Zomato, as it helps to reduce the cost of customer acquisition and retention.

Zomato’s Blinkit Turns Contribution Positive in Q2FY24, Margin Improves to 1.3%

For the first time, the quick commerce (Blinkit) business turned Contribution positive for the full quarter in Q2FY24. The business’s contribution margin (as a percentage % of GOV) has increased from -7.3% in Q2FY23 last year (when we acquired the business) to +1.3% today in Q2FY24. Blinkit’s same-store sales grew in Q2FY24, which indicates that existing stores are serving more customers and generating more revenue. This is a positive sign, as it suggests that the company’s unit economics are improving. Blinkit also added 28 new stores in Q2FY24, bringing its total store count to 411. This expansion is helping the company to reach more customers and grow its business.

Valuation and Key Ratios:

Zomato’s stock is currently trading at a valuation of 5.25 times its book value of Rs. 22.9 per share at the current market price of Rs. 116. The company reports an ROE of -5.91 % and ROA of -5.46 % in Q2FY24. The interest coverage ratio stood at -7.63x in Q2FY24, indicating the company’s solvency, while the current ratio stood at 3.93x in Q2FY24. The P/B ratio for the company is 5.06.

Financial Performance Highlights for Q2FY24:

The quarter’s net profit declined year on year (YoY), with a loss of 497 crores in Q2FY24 compared to a profit in the same period last year. The company’s EV/EBITDA ratio increased QoQ, rising to 2,045 in Q2FY24 from Q2FY23. Despite a negative PAT of 497 crores in Q2FY24, the company managed to reduce its losses as compared to the previous quarter. The Price to Book Value ratio scaled significantly year on year, reaching 5.25 in Q2FY24 from a lower ratio in the same quarter last year. Earnings per share (EPS) improved significantly from quarter to quarter (QoQ), with the company reporting a loss of -0.58 in Q2FY24 compared to a greater loss in the prior quarter.

Conclusion:

Zomato’s second-quarter FY24 results were mixed, with great rise in GOV and EBITDA but a sustained loss in net profit. The company’s Gold program is operating effectively and increasing client loyalty. The Blinkit firm is also profitable, which is a good indicator. Zomato’s values, however, remain high in comparison to its financial performance. Overall, the organization is still in the investment phase, with the goal of growing its reach and boosting profitability.

HDFC Bank’s Q2FY24 PAT reached INR 159 bn driven by strong loan growth

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UGRO Capital Acquires Profectus Capital in Ambitious ₹1,400 Crore Deal

Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

FB's Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

Company Overview:

Federal Bank is engaged in providing a wide range of banking and financial services, including commercial banking, retail and corporate banking, working capital finance, insurance, and treasury products and services. In the Q2FY24, the bank expanded its branch network by adding 23 new branches, bringing the total count to 1,389 branches. The bank has a customer base of 1.72 crore and is supported by a workforce of 14,270 employees.

Strong Business Growth:

Federal Bank experienced significant growth in its deposit base, with a 23.1% year-on-year (YoY) and 4.7% quarter-on-quarter (QoQ) increase. This outpaced its loan growth, which saw a 19.6% YoY and 5.1% QoQ growth. The growth in deposits was primarily driven by an increase in term deposits, resulting in a 67 basis point (bps) QoQ decline in the CASA ratio to 31.2%. Loan growth was supported by healthy rises in retail (6% QoQ), commercial (7%), and agricultural (8%) businesses. Additionally, Commercial Vehicles/Construction Equipment (CV/CE) and Microfinance Institutions (MFI) segments performed well, growing 11% and 27% QoQ, although on a lower base. The bank’s management has reaffirmed its guidance for loan and deposit growth of 18-20% for FY24.

NIM contracted by 14 bps YoY but improved by 1 bps QoQ

Federal Bank’s Net Interest Income (NII) increased by 7.18% QoQ and 16.72% YoY, with the reported NIM improving by 1 bps QoQ to 3.16% due to a 14 bps QoQ increase in yield to 9.35%. The bank’s management has revised its NIM guidance for FY24 to 3.25% from 3.3% to account for the expected increase in deposit costs by 18-20 bps. The Cost-to-Income (C/I) ratio increased to 52.5% in Q2, up from 50.9% in Q1. The bank anticipates that operational costs will remain elevated due to its decision to invest in network expansion and branding to capitalize on increased volumes.

Slippages up 81 bps QoQ but asset quality remains stable – GNPA/NNPA – 2.3%/0.6%

Despite a slight increase in slippages of 81 bps QoQ, Federal Bank maintained stable asset quality. GNPA and NNPA stood at 2.3% and 0.6%, respectively, down from 2.4% and 0.7% in Q1, with PCR of 72.3%. The bank’s credit cost dropped to one of the lowest levels in the sector at 9 bps, compared to 35 bps in Q1 and 68 bps in Q2FY23. As a result, the bank reported higher-than-expected Profit After Tax (PAT) growth of 12% QoQ and 35% YoY.

Valuation and Key Ratios:

Federal Bank’s stock is currently trading at a valuation of 1.37 times its book value of Rs 105 per share at the current market price of Rs 144. The company reported healthy growth in returns, with Return on Equity (ROE) improving by 136 bps YoY (with a slight decrease of 1 bps QoQ) to 15.72%. Return on Assets (ROA) increased to 1.36%, up by 15 bps YoY and 6 bps QoQ. The Interest Coverage Ratio stood at 1.4x, indicating the company’s solvency.

Standalone Q2FY24 Results Highlights:

➡️ Interest income increased by 35.6% YoY and 8.57% QoQ to Rs 5,455 crore, while interest expenses grew by 50.4% YoY and 9.4% QoQ to Rs 3,398 crore, resulting in net interest income of Rs 2,056 crore, a growth of 16.7% YoY and 7.1% QoQ.

➡️ Other income rose by 19.8% YoY to Rs 730 crore, and the bank expects this run-rate to continue in the future.

➡️ Pre-Provision Operating Profit (PPOP) increased by 9.2% YoY and 1.70% QoQ to Rs 1,324 crore, driven by the rise in the C/I ratio to 52.5% in Q2 compared to 50.9% in Q1. The bank anticipates elevated operational costs due to its strategic investments in network expansion and branding.

➡️ PAT surged by 35.5% YoY and 11.7% QoQ to Rs 954 crore, primarily due to a significant reduction in provisions, down by 83.6% YoY and 71.7% QoQ to Rs 44 crore.

➡️ Earnings Per Share (EPS) stood at Rs 4.17, reflecting a growth of 24.8% YoY and 3.4% QoQ.

Conclusion:

Federal Bank is a prominent banking institution known for providing a wide array of banking and financial services, which encompass commercial banking, retail and corporate banking, working capital finance, insurance, and treasury products and services. In the second quarter of FY24, the bank strengthened its presence by adding 23 new branches, expanding its total branch network to 1,389. With a substantial customer base of 1.72 crore and a dedicated workforce of 14,270 employees, the bank is well-equipped to serve a diverse range of clients. In conclusion, Federal Bank stands as a reliable and expanding financial institution, poised for continued growth and success in the industry.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

Delta Corp's Casino Business sustains Financials in Q2FY24

Delta Corp’s Casino Business sustains Financials in Q2FY24

Company Overview:

Delta Corp Ltd is India’s sole publicly listed gaming and hospitality company, involved in casino gaming, hospitality, and online skill gaming. It operates casinos in Goa, Daman, and Sikkim and expanded into the global market with a casino at the Marriott Hotel in Kathmandu, Nepal. The company offers online skill gaming through Adda52.com, Adda52Rummy.com, and Adda.games and operates two hotels in Daman and Goa.

Casino Gaming EBITDA Decline Despite Revenue Surge in Q2:

In Q2FY24, the casino segment reported gross revenue of 283 Cr, contributing 84% of the total revenue, marking a 3.44% YoY growth (+1.95% QoQ) from the previous quarter’s 273 Cr. However, despite revenue growth, the segment’s EBITDA (revenue minus expenses) declined by 4.60% YoY (-2% QoQ) to 89.46 Cr due to increased expenses. EBITDA margins dropped by 260 bps YoY and 130 bps QoQ due to rising costs.

Online Gaming Reports Negative EBITDA: -1.64 Cr (Down 21.15% YoY and 80.95% QoQ):

In Q2FY24, the online gaming segment saw a 13.90% YoY decline (1.35% QoQ) in gross revenue, with 42.54 Cr, contributing 13% of the total revenue, compared to the previous quarter’s 43.12 Cr. The segment reported negative EBITDA (revenue minus expenses) of -1.64 Cr, reflecting a 21.15% YoY decrease and an 80.95% QoQ decrease.

Hospitality Segment Reports Negative Results: -4.18 Cr (Down 117% QoQ)

In Q2FY24, the hospitality segment reported revenue of 9.95 Cr, contributing 3% of the total revenue. This marked an 8.21% YoY decline and a significant 42.08% QoQ decrease. EBITDA (revenue minus expenses) reported a negative figure of -4.18 Cr, reflecting a 26.92% YoY decline and a substantial 117.71% QoQ decrease due to increased costs.

Valuation and Key Ratios:

Currently, the stock is trading at a multiple of 13.2x EPS (TTM) 10.2 at the current market price of 135, with the industry PE standing at the same 13.2x. The stock is trading at 1.54 times its book value of 87.7 Rs per share. The company reports healthy return ratios, with ROE at 12.4% and ROCE at 16.3%. The interest coverage ratio stands at 34.2x, indicating a high level of solvency for the company.

Q2FY24 Results Update: Consolidated Performance Sustained by Casino Business

➡️ In Q2FY24, consolidated revenue showed a modest 0.23% YoY growth (-0.81% QoQ), reaching 270 Cr compared to 272 Cr in the previous quarter, primarily driven by the growth in casino gaming.

➡️ EBITDA declined by 0.26% YoY but increased by 4.45% QoQ, reaching 100 Cr compared to 96 Cr in the previous quarter. EBITDA margins increased by 180 bps QoQ, remaining stable on a YoY basis, at 36.99%, mainly due to a 4.26% QoQ decline in total operating expenses.

➡️ EBIT income decreased by 2.62% YoY but grew by 4% QoQ to 83 Cr, with EBIT margins expanding by 140 bps QoQ to 30.72%, benefiting from improved operating efficiency.

➡️ PAT grew by 1.74% YoY and 2.25% QoQ, reaching 69 Cr, sustained by the growth in the casino business, while PAT margins increased by 77 bps QoQ and 38 bps YoY.

➡️ EPS for the quarter stood at 2.59 Rs (PQ-2.53), representing a 1.74% YoY growth and a 2.25% QoQ increase.

Conclusion:

Delta Corp Ltd, India’s leading gaming and hospitality company, experienced mixed results in Q2FY24. While the casino business showed revenue growth, challenges in the online gaming and hospitality segments led to declining EBITDA. The company’s stock valuation and return ratios remain healthy. Delta Corp must address cost issues in these segments to ensure more balanced and sustainable financial performance.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 6, 2023

HDFC Bank's Q2FY24 PAT reached INR 159 bn driven by strong loan growth

HDFC Bank’s Q2FY24 PAT reached INR 159 bn driven by strong loan growth

Company Overview:

HDFC Bank, the largest private sector bank in India, offers a diverse range of banking and financial services. Their portfolio includes retail loans such as home loans, LAP, 2-wheeler loans, personal loans, as well as wholesale loans for corporates, businesses, and agriculture. In Q2FY24, retail loans accounted for 51% of the loan book, while wholesale loans constituted the remaining 49%. The company expanded by adding 85 net new branches, increasing their total to 7,945 compared to 6,499 in Q2FY23, with a total customer base of 91 million, marking a 7% QoQ growth.

Deposit grew 5.3% QoQ (merged basis) which reduce CASA to 37.6% in Q2

During Q2FY24, deposits increased by 5.3% QoQ (on a merged basis), reaching 21,729 billion, while the loan book grew by 4.9% QoQ (on a merged basis) to 23,328 billion. The increase in term deposits resulted in a reduced CASA ratio of 37.6%. Gross advances stood at 23,546 billion, growing by 4.9% QoQ (on a merged basis). Retail deposits accounted for 83% of the total, with the remaining 17% being wholesale deposits in Q2FY24.

Loan book up 5.5% QoQ driven by Retail and CRB in Q2

In Q2FY24, the retail loan book expanded by 3.1% QoQ (a remarkable 106.62% YoY) to 11,995 billion, while the CRB (Corporate, Retail, and Business Banking) loan book grew by 9.7% QoQ (29.46% YoY) to 7,052 billion. Among the retail loans, credit card and personal loans grew by 0.5% and 1.1% QoQ, respectively, while gold and other retail loans displayed robust growth at 7.8% and 7.2% QoQ in Q2FY24. In the CRB segment, agriculture and business banking demonstrated strong growth at 13.6% and 10% QoQ, while corporate loans increased by 5.8% QoQ.

NIMS Contraction – 70 bps QoQ to 3.65% Impact of High CoF

Net Interest Margins (NIMs) declined by 70 basis points (bps) QoQ, reaching 3.65%, primarily due to an 80 bps increase in the cost of funds (CoF) QoQ (150 bps YoY), which stood at 4.8%. This increase in CoF was attributed to excess liquidity in the merged arm of HDFC Bank, which incurred higher costs. On the other hand, the yield on loans rose by 135 bps QoQ (218 bps YoY) to 9.7%, resulting in a spread of 3.26%, reduced by 35 bps QoQ (42 bps YoY).

Slight Increase in GNPA/NNPA- 17bps QoQ/5bps QoQ

Asset quality experienced a minor decline in Q2FY24, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) increasing by 17 bps QoQ and 5 bps QoQ, respectively, to 1.31% and 0.35%. The amounts for GNPA and NNPA stood at 3,15,799 million and 80,728 million, respectively. The provision coverage ratio remained at 74.4%, compared to 74.9% in the previous quarter. Capital Adequacy Ratio (CAR) continued to be strong at 19.54% in Q2FY24, exceeding the RBI guidelines of 15%.

Valuation and Key Ratios:

As of the current market price of 1,489, the stock is trading at 2.87 times its book value of 519 per share. The company reported healthy return ratios in Q2FY24, with Return on Assets (ROA) at 2%, Return on Equity (ROE) at 16.2%, and an Interest Coverage Ratio of 1.65x, signifying the company’s solvency.

Q2FY24 Results Updates: Standalone

➡️ In Q2FY24, interest income surged by 75.45% YoY (39.33% QoQ) to 676,984 million, while interest expenses increased by 129.51% YoY (61.33% QoQ) to 403,132 million, resulting in Net Interest Income (NII) of 273,852 million, growing by 30.27% YoY (16.04% QoQ).

➡️ The healthy growth in NII was driven by the high yield on loans, which increased by 135 bps QoQ and 218 bps YoY.

➡️ Total income in Q2FY24 increased by 33.11% YoY (16.03% QoQ) to 380,930 million, led by a 40.97% YoY and 16.04% QoQ increase in other income.

➡️ Pre-Provision Operating Profit (PPOP) income grew by 30.48% YoY (20.89% QoQ) to 226,938 million, driven by operating efficiency. The cost-to-income ratio dropped by 240 bps QoQ.

➡️ Profit After Tax (PAT) surged by 50.64% YoY (33.67% QoQ) to 159,761 million, resulting in Earnings Per Share (EPS) for the quarter standing at 21 Rs, growing by 10.53% YoY and remaining stable on a QoQ basis.

Conclusion:

HDFC Bank, India’s largest private sector bank, reported positive Q2FY24 results with healthy growth in deposits and advances. The bank’s loan book showed significant expansion in both retail and corporate segments, and while there was a slight contraction in net interest margins due to higher cost of funds, the overall financial performance remained robust. Asset quality remained stable, and the bank continued to maintain a strong capital adequacy ratio. With a trading valuation at 2.87 times book value and healthy return ratios, HDFC Bank continues to demonstrate its resilience and strength in the Indian banking sector.

Q2FY24: Shriram Finance reports robust AUM growth Drives NII soars to 4,594 Cr

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