Key Q4 Results Highlights: With the likes of Wipro, Infosys, TCS, HDFC Bank, Jio Financial, Reliance Industries, Tata Consumer Products, HUL, Axis Bank, Vedanta, Tech Mahindra, Bajaj Finance having already released their earnings for the quarter ended March 31, 2024, the Q4 earnings season is now full swing. Market Participants were today keen on the performance of players like Bajaj Finserv, HCL Technologies, Shriram Finance, Maruti Suzuki, and Mahindra Holidays & Resorts among others. Meanwhile, the street also kept an eye on how stocks are performing for the companies that have already released their earnings for the period.
The week will witness announcements from the likes of ICICI Bank, Yes Bank, L&T Finance, IDFC First Bank, among many others.
The board of HCL Technologies has declared an interim dividend of Rs 18 per share.
HCL Technologies net profit grew to Rs 3,995 crore in the last quarter of FY24, an increase of 0.35% year-over-year against Rs 3,981 crore it reported in the Q4 of FY23. The company's revenue from operations came in at Rs 28,499 crore in Q4 FY24, a growth of 7.1% on year compared to Rs 26,606 crore it reported in the same quarter of FY23.
Maruti Suzuki sold a total of 2,135,323 vehicles during the year, a growth of 8.6% over that in FY2022-23. Sales volume in the domestic market stood at 1,852,256 units and exports at 283,067 units.
The company's net profit rose on account of higher sales volume, favourable commodity prices, cost reduction efforts and higher non-operating income.
The Board of Directors recommended the highest-ever dividend of INR 125 per share (face value of INR 5 per share) compared to INR 90 per share in FY 2022-23.
Maruti Suzuki reported a net profit of Rs 3,877.8 crore in Q4 of FY24 against Rs 2,623.6 crore it posted in the quarter ending March of FY23.
The company’s revenue from operations stood at Rs 38,234.9 crore in Q4 of FY24 against Rs 32,048 crore it recorded in Q4 of FY23.
Motilal Oswal has recorded a jump of 4.3 times in its net profit for the quarter ending March, standing at Rs 724.60 crore Vs Rs 166.96 crore it recorded in the same quarter a year ago. The company's total revenue from operations stood at Rs 2,141.29 crore, an increase of 108% in Q4 of FY24, compared to Rs 1,027.37 crore it recorded in Q4 of FY23.
Shriram Finance has recommended a final dividend of Rs 15 per equity share of face value of Rs 10 each fully paid-up (i.e. 150%) for the financial year ended March 31, 2024, subject to approval of Members at the ensuing 45th AGM.
"This is in addition to the two Interim Dividends for the financial year 2023-24 declared by the Company - the first Interim Dividend of Rs.20/- per equity share of Rs.10/- each fully paid-up (200%) declared on October 26, 2023 and the second Interim Dividend of Rs.10/- per equity share of Rs.10/- each fully paid-up (100%) declared on January 25, 2024. With this the total dividend for the financial year 2023-24 will be Rs.45/- per share (i.e.450%)," said the company in an exchange filing.
Shriram Finance's net profit in Q4 of FY24 rose 49% to Rs 1,945.87 crore Vs Rs 1,308.31 crore it posted in the same quarter a year ago. The company's total revenue from operations stood at Rs 9,483.71 crore in Q4 of FY24, against Rs 7,756.33 crore it recorded in Q4 of FY24.
Bajaj Finserv‘s net profit rose to Rs 2,118.53, an increase of almost 20% in the fourth quarter of FY24, compare to Rs 1,768.95 crore it reported in Q4 of FY24. The company’s net interest income rose by 32.8% in Q4 FY24 to Rs 14,649.29 crore Vs Rs 11, 025.45 crore posted last year in the same quarter.
Bank of Maharashtra to raise Rs 7,500 crore. "Raising of Capital up to Rs. 7,500/- crore through Follow-on Public Offer (FPO) / Rights issue / Qualified Institutional Placement (QIP) issue, Preferential issue, ESPS or any other mode or combination thereof and/or through issue of BASEL III Compliant Tier I and Tier II Bonds or such other securities as may be permitted under applicable laws etc., subject to the necessary approvals," said the bank in an exchange filing.
The bank has to give a final dividend of Rs 1.40 per equity share. "Recommended a dividend of 14% ie., Rs 1.40 per equity share of Rs 10 each fully paid out of the net profits for the year ended March 31, 2024, subject to the approval of the shareholders at the ensuing Annual General Meeting (“AGM”) of the Bank," said the company in a statement.
Bank of Maharashtra's net profit came in at Rs 1,217.67 crore in Q4 of FY24, a jump of 45%, against Rs 840.04 crore it reported in the same quarter a year ago.
The bank reported a net interest income of Rs 5,466.70 crore, an increase of 21.6% in Q4 of FY24 in comparison to Rs 4,495.41 it reported a year ago in the same quarter.
The stock of Maruti Suzuki fell 1.6% to an intraday low of Rs 12,711, compared to its previous close of Rs 12,922.50, ahead of its Q4 results for the financial year 2023-24.
Investors will be eyeing Maruti Suzuki, HCL Technologies, Bajaj Finserv, Shriram Finserv, and Aditya Birla Sun Life AMC among others on April 26.
"Going ahead amid inflationary stress, we largely retain our estimates; we see FY25-26 estimates topline & earnings growth at 11% each. Given that the positives are in the price, the stock offers little upside despite the generous valuations. We see any further rerating muffled by pressure on ROCE ahead and maintain a "Reduce" (Mar-25 estimates target price of Rs 2,600) while awaiting a better entry opportunity," said EMkay Global in a research report.
Axis Bank's cash deposit ratio has improved to 90.3% compared to 92.8% in the previous quarter. However, the negative aspect is higher-than-expected provision expenses of Rs 11.8 billion vs Rs 10.3 billion in 3Q of FY24. Furthermore, the expectations are that the negatives are well provided for and anticipate growth to continue going forward. "We value the standalone bank with a price-to-book value of 2.2 times estimated for FY26 with an adjusted book value per share of Rs 575 and reach a price target of Rs 1,322. We recommend a "Buy" rating with a potential upside of 17% from the current level," said LKP Securities on Axis Bank.
The management of Tech Mahindra indicated that it is a long-drawn approach and would require investments in the initial phase. It expects, the management, FY25 to be the year of turnaround followed by stable performance in FY26, while actual benefits are only to be achieved in FY27. The management was confident to drive profitable growth for all three years and achieve a 15% operating margin in FY27, while it expects $250 million average benefits to be achieved in each of the individual years. "We believe the near-term macro uncertainties would provide limited headroom for growth and margin recovery until FY25," said Prabhudas Lilladher on Tech Mahindra in its research report.
"As the bank continues to invest in technology and increasingly focuses on granularity, we believe it remains well-positioned for sustained growth across product cycles. We expect the bank to deliver a healthy RoA/ROE of 2.01%/16.9% by FY26. Maintain "Buy" with a target price of Rs 1,900 valuing it at 1.8 times FY26," said JM Financials in a research report. It also said IndusInd Bank has a healthy loan growth and a well-diversified loan book.
"Given the demand within communications 36% of revenue remained weak and unstable, we believe the company’s laid out strategy to drive a balanced portfolio mix with reduced dependency on communications is a positive. However, the cyclicality of its portfolio business and weakness across its BUs seem to be challenging, hence we would wait for early signs of recovery before we turn positive on the name. We are building in revenue growth of 1.8% and 6.0% YoY CC with margin improvement (adjusted) of 70bps and 300bps for FY25e and FY26e, respectively. The stock is currently trading at 20x FY26e, we are assigning P/E of 19x to FY26e with a target price of Rs 1,135. With that we assume coverage on Tech Mahindra with a “HOLD” rating," said Prabhudas Lilladher in its research report.
The stock of L&T Technologies slumped 9.48% to an intraday low of Rs 4,689.50 after the company reported its Q4 results on April 25. The company reported a flat growth of net profit in the last quarter of FY24, standing at Rs 341 crore. The company's stock has a 52-week low of Rs 3,500.
The share of Tech Mahindra jumped 10% to an intra-day high of Rs 1309.30 despite the IT services company experiencing a substantial 41% decline in its consolidated net profit for the March quarter, reaching Rs 661 crore. Similarly, the company’s consolidated net profit for the quarter ended March 2024 plummeted by almost 41% to Rs 661 crore. Furthermore, its revenue for Q4 FY24 dropped by 6.2% year-on-year to Rs 12,871 crore
The shares of Bajaj Finance plunged over 6% to a day low of Rs 6,872.70 despite the non-banking finance company seeing its consolidated net profit surge by 21% to Rs 3,825 crore, compared to Rs 3,158 crore in the corresponding period last year. Total income on a consolidated basis for the January-March period of 2023-24 also witnessed a significant rise, reaching Rs 14,932 crore.