The first quarter earnings season is now in full swing with majors like Tata Consultancy Services (TCS), HCL Technologies, Infosys, Wipro, Jio Financial Services, HDFC Bank, SpiceJet, Asian Paints, LTIMindtree, Infosys, Paytm, Kotak Mahindra Bank, CEAT, and many others already having released their Q1 results. This is creating a buzz in the market along with a much bigger excitement among investors and industry leaders that’s coming from the Union Budget which is to be tabled by Finance Minister Nirmala Sitharaman tomorrow (July 23).
Today, Indian Overseas Bank, IDBI Bank, Suzlon Energy, UCO Bank, Coforge Limited, Zensar Technologies, Cyient DLM, Spencer Retail, Fortis Malar Hospitals, Triveni Glass, among many others will report their first quarter results.
This week too will remain in focus with market participants and investors keen on the performance of players like Hindustan Unilever, Larsen & Toubro, Axis Bank, Nestle India, DLF, Tech Mahindra, Ashok Leyland, Cipla, Piramal Pharma, among many others.
“HDFC Bank’s 1QFY25-end deposits were flat sequentially at Rs23.8tr, but management indicates that on an average basis, the deposit growth had been healthy at ~4.6% qoq but due to a steep outgo of ~Rs430bn, specifically from current accounts as well as ~Rs160bn deposit repayments of HDFC Limited (primarily high-cost institutional deposits), resulted in a weak trend. Management remains firm over growing deposits at a faster pace compared to growth in advances in the near term to achieve a comfortable credit-to-deposit ratio, which improved to 104.5% against ~105.3% last quarter whereas the overall liquidity coverage improved to ~123% against ~115% in Mar 2024. We remain confident of healthy deposit growth, mainly driven by CASA aggression led by a shored-up network (+3,243 branches since FY21) as well as a well-oiled distribution machinery,” stated a report by InCred Equities.
“We expect HDFC Bank to be ~2% RoA and ~16% RoE story. We have valued the standalone bank at ~2.5x FY26F BV and its subsidiaries at Rs250/share. Slow growth and weak margins are key downside risks to our thesis,” it added.
UCO Bank has a network of 3230 domestic branches and two overseas branches each at Hong Kong and Singapore Centre and one representative office in Iran. Out of the total branches, it said, 61.73 per cent, i.e., 1994 branches are in rural & semi-urban areas. The bank has 2477 ATMs and 9885 BC Points.
UCO Bank posted gross NPA at 3.32 per cent as on June 30, 2024 as against 4.48 per cent a year earlier, registering an improvement of 116 bps. Net NPA, meanwhile, was at 0.78 per cent during Q1FY25 from 1.18 per cent during the same period last year, recording an improvement of 40 bps. Provision Coverage Ratio improved to 95.76 per cent from 94.88 per cent las year.
UCO Bank on Monday posted Q1FY25 profit at Rs 550.96 crore, recording a jump of 146.5 per cent on-year in comparison to Rs 223.48 crore during the first quarter of FY24. Total interest earned during the quarter was at Rs 6023.99 crore. The Bank posted Net Interest Income (NII) for Q1 at Rs 2254 crore, up 12.20 per cent on YoY basis as against Rs 2009 crore for the same period of preceding year.
Gross NPA ratio improved to 3.87% as on June 30, 2024 as against 5.05% as on June 30, 2023. Net NPA ratio improved to 0.23% during Q1FY25 as against 0.44% during the same period last year.
Provision Coverage Ratio (including Technical Write-Offs) improved to 99.34% as on June 30, 2024.
Total Deposits: Rs 2,77,548 crore; up 13% YoY.
CASA: Rs 1,34,810 crore; CASA ratio: 48.57%
Net Advances: Rs 1,94,026 crore; up 17% YoY
IDBI Bank on Monday posted a profit of Rs 1719.27 crore during the first quarter of FY25, recording a growth of 40.4 per cent in comparison to Rs 1224.18 crore during the corresponding quarter of previous financial year. On a consolidated basis, Q1 profit was reported at Rs 1739.15 crore. The Net Interest Income (NII) for the period came in at Rs 3233 crore as against Rs 3998 crore during the last year. The Net Interest Margin (NIM) stood at 4.18 per cent in Q1FY25.
Indian Overseas Bank recorded gross NPA at Rs 6,648.71 crore during Q1FY25 as against Rs 13,628.98 crore during last year. Net NPA was posted at Rs 1,153.51 crore vs Rs 2589.97 crore YoY. Meanwhile, gross NPA ratio for the quarter was at 2.89 per cent as against 7.13 per cent YoY. Net NPA during Q1FY25 came in at 0.51 per cent vs 1.44 per cent during the same period last year.
Indian Overseas Bank on Monday posted its fiscal first quarter earnings with standalone profit at Rs 632.81 crore, up 26.5 per cent in comparison to Rs 500.35 crore posted during the corresponding quarter of FY24. The Net Interest Income (NII) stood at Rs 2,441 crore, up 5.1 per cent as against Rs 2,322.8 crore during Q1FY24. On a consolidated basis, the profit came in at Rs 648.66 crore.
MP Taparia, Managing Director, The Supreme Industries Limited, said, “With increased business opportunities, the company has made capex commitments including carry forward commitments of around Rs 1500 crore. Entire capex shall be funded from internal accruals.”
The Company has a total cash surplus of Rs 1245 crore as on 30th June, 2024 as against cash surplus of Rs 1178 crore as on 31st March, 2024. The overall turnover of value-added products increased to Rs 925 crore during the current quarter as compared to Rs 756 crore in the corresponding quarter of previous year.
Supreme Industries on Monday reported its fiscal first quarter profit at Rs 273.37 crore, up 26.8 per cent in comparison to Rs 215.54 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 2636.35 crore,up 11.3 per cent as against Rs 2368.58 crore recorded during the first quarter of previous financial year. The company EBITDA stood at Rs 387.3 crore, up 20.4 per cent on-year.
Axis Bank will release its quarter earnings for Q1FY25 on July 24. Manish Chowdhury, Head of Research, StoxBox, said, “Axis Bank demonstrated strong performance in FY24, primarily driven by its Wholesale and Retail segments. We anticipate a slight compression in the bank’s NIMs. However, the bank has not yet exhausted its potential for deposit growth, with untapped levers still available to enhance this aspect.”
He further added, “Despite industry-wide stress in unsecured loan portfolios, Axis Bank's unsecured book remains stable, and we do not foresee any deterioration in asset quality. The bank's loan mix has shifted towards high-yielding products, gradually improving NIMs. Although the bank expects to complete deposit repricing by the next quarter, leading to stable NIMs thereafter, a slight dip may occur in the interim. Overall, our outlook remains positive based on these factors.”
Analysts at Anand Rathi Research said, “After a record FY24, Bharat Petroleum’s Q1 Rs56.5bn/Rs30.1bn EBITDA/ PAT was in step with our estimates, though y/y they fell 64%/71% due to lower refining margins ($7.9/bbl vs. $12.5 last year). Q1 standalone debt fell to Rs152bn vs. Rs279bn last year, aided by strong profitability. For FY25, we have modelled conservative refining/marketing margins. We prefer the Corporation to peers, given its strong BS and likely monetisation of overseas E&P assets in Mozambique LNG in CY24. We retain our estimates and a Buy rating, but with a higher 12-mth TP of Rs379 (Rs344 earlier), 6x FY26e EV/EBIDTA (5.5x).
Dodla Dairy Ltd on Monday reported its fiscal first quarter profit at Rs 65.02 crore, up 85.9 per cent in comparison to Rs 34.97 crore during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 911.60 crore, up 10.7 per cent as against Rs 823.43 crore recorded during the first quarter of FY24. The company EBITDA stood at Rs 105 crore, up 78 per cent on-year.
On July 19, Wipro reported fiscal first quarter profit at Rs 3036.60 crore, down 5.2 per cent from Rs 2886.00 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 21,963.80 crore. Abhishek Kumar, Equity Research Analyst, JM Financial Ltd, said, “Wipro’s IT Services revenues declined 1% cc QoQ, within its guided band of -1.5-0.5% but below estimates (JMFe: 0.2%). EBIT margin improved 10bps to 16.5%, meeting expectations. Its 2Q cc revenue growth guidance of -1% to +1% QoQ underwhelmed. Management however believes they are in a better position going into Q2 as compared to Q1-beginning. Wipro echoed peers’ view that US BFSI is improving. Its soft guidance however is driven by sustained weakness in the EU and APMEA. Besides, recent large deal wins are unlikely to contribute meaningfully in Q2.”
“We now build a slightly delayed recovery in WPRO driving 3% cut to FY26 but a 3% rise in FY27E EPS,” he added.
Nippon Life Asset Management Company (AMC) posted Q1 profit increase by 40.99% YoY on Friday. Gaurav Jani, Research Analyst, Prabhudas Lilladher Pvt Ltd, said, “Nippon Life saw a mixed quarter since revenue miss was offset by lower other opex. Blended yields declined by 1.7bps QoQ, which was attributable to telescopic pricing driven by strong equity market growth. Core income at Rs3.08bn was largely in-line. Staff cost (ex-ESOP) was a miss and rose by +11% QoQ due to higher increment, variable pay, headcount addition and spends on employee engagement. Led by class leading equity performance, net flow market share that increased from 5.3% in FY23 to 12% in FY24, is sustaining well.”
“We expect a healthy core PAT CAGR of 24.6% (earlier 18.8%). Stock is trading at 29x on FY26E core EPS (17% discount to HDFC AMC). We slightly tweak multiple to 33x from 31x and increase TP to Rs700 from Rs615. Retain BUY,” he added.
Reliance Industries, on Friday, reported its fiscal first quarter earnings with a profit decline of 5.5 per cent on-year at Rs 15,138 crore from Rs 16,011 crore posted during Q1FY24. RIL posted revenue from operations at Rs 236,217 crore.
Here are all the details of RIL’s Q1 performance along with its key businesses.
JSW Steel reported a drop of 64 per cent in its Q1 net profit at Rs 845 crore. Revenue from operations in the June quarter increased 2 per cent year-on-year to Rs 42,943 crore.
Tushar Chaudhari, Research Analyst, Prabhudas Lilladher Pvt Ltd, said, “JSW Steel reported weak but in-line standalone operating performance in 1QFY25 led by muted demand and weak HRC pricing. Average realization increased 3% QoQ as weaker HRC prices negated higher long product prices. Std. sales volume declined 11% QoQ to 5.09mt, while exports stood at 10% of sales from Indian ops. As coking coal prices have declined and domestic steel pricing remains stable, margins are expected to improve in 2HFY25.”
“Commissioning of both Vijayanagar and BPSL brownfield expansions is on track, and volume ramp-up can be expected from end-3QFY25. We incorporate lower steel and coking coal prices, and cut EBITDA by ~5%/2% for FY25E/26E. We expect revenue/EBITDA/PAT growth of 17%/25%/51% over FY24-26E,” he added.
HDFC Bank recorded a standalone profit for the first quarter of FY25 at Rs 16,174.75 crore, up 35.3 per cent on-year. The Bank posted NII at Rs 29,837.1 crore during the quarter.
An analyst report by Motilal Oswal Financial Services said, “HDFC Bank delivered broadly in-line performance, with NIMs improving 3bp QoQ, and the C/D ratio declining 87bp QoQ to 103.5%. PAT increased 2.3% QoQ (5% beat), aided by lower provisions.”
“Amid the increasing focus on restoring LDR to normalized levels, we cut our loan growth estimates to 9%/11% for FY25/FY26. We thus estimate LDR to improve to 98.5%/93.5% over FY25/FY26. We estimate HDFC Bank to deliver an FY26E RoA/RoE of 1.9%/15% and reiterate our BUY rating on the stock with a TP of INR1,850 (premised on 2.3x FY26E ABV + INR256 for subsidiaries),” it added.
Welcome to this live blog! With companies like TCS, HCL Technologies, Infosys, Wipro, Jio Financial Services, Reliance Industries, Patanjali Foods, HDFC Bank, SpiceJet, Asian Paints, LTIMindtree, Infosys, Paytm, Kotak Mahindra Bank, BPCL, CEAT, and many others already having released their Q1 results, the quarter earnings season is now on full swing.
Today, many others like Indian Overseas Bank, IDBI Bank, Suzlon Energy, UCO Bank, Coforge Limited, Zensar Technologies, Cyient DLM, Spencer Retail, Fortis Malar Hospitals, and more will report their first quarter results.