Q4-FY23 Results Updates (09/05/2024) Big Names

#NSE0030– Q4-FY23 Results Updates (09/05/2024)

Mahanagar Gas

Quarter-over-Quarter (QoQ) Analysis:

• Total Income: The total income slightly decreased from ₹1771 crore to ₹1763 crore.
• Net Profit: There was a more significant decrease in net profit, down from ₹317 crore to ₹264.9 crore, which indicates a reduction of approximately 16.5%.
• Earnings Per Share (EPS): Correspondingly, the EPS fell from ₹32.11 to ₹26.83.

Year-over-Year (YoY) Analysis:

• Total Income: Yearly income remained almost flat, with a slight increase from ₹7032 crore to ₹7037 crore.
• Net Profit: Contrastingly, the net profit showed a substantial increase from ₹790 crore to ₹1289 crore, a growth of approximately 63.2%.
• Earnings Per Share (EPS): EPS saw a dramatic rise from ₹80 to ₹130.5, aligning with the substantial growth in net profit and indicating higher profitability on a per-share basis.
• Dividend Announcement: Mahanagar Gas has announced a dividend of ₹18 per share.

Indian Overseas Bank (IOB)

Net Profit:

• IOB’s net profit increased by 24.3% year-over-year (YoY), from ₹650 crore in the previous year to ₹808.1 crore.

Net Interest Income (NII):

• The NII for the quarter rose by 21.4% YoY, from ₹2,276.1 crore to ₹2,763.2 crore. NII, which is the difference between the revenue generated from interest on loans and the cost of handling deposits, is a crucial metric for banks as it essentially reflects the core business profitability.

Asset Quality:

• Gross Non-Performing Assets (NPA): The Gross NPA ratio improved from 3.90% in the previous quarter to 3.10% this quarter. This reduction indicates an improvement in the quality of the bank’s asset portfolio, suggesting effective credit management and recovery efforts.
• Net Non-Performing Assets (NPA): Similarly, the Net NPA ratio also saw a slight improvement, decreasing from 0.62% to 0.57% quarter-over-quarter (QoQ).

These results highlight a strong quarter for IOB, with significant growth in profitability and a healthy improvement in asset quality. The enhancement in NII and reduction in NPA levels are particularly encouraging, as these are indicative of both operational efficiency and effective risk management — key aspects that investors often scrutinize when evaluating the performance and stability of banks.

Suryoday Small Finance Bank (SFB)

1. Net Profit:
   • Suryoday SFB reported a net profit of ₹60.8 crore, which is up by a substantial 56.3% compared to ₹38.9 crore in the same quarter the previous year.
2. Net Interest Income (NII):
   • The NII for the quarter stood at ₹270.8 crore, marking a 28.9% increase from ₹210.1 crore YoY. The rise in NII, which is the difference between the interest income generated from loans and the interest paid on deposits, suggests strong core banking growth.
3. Asset Quality:
   • Net Non-Performing Assets (NPA): There was a noticeable improvement in the Net NPA, which decreased to 0.86% from 1.42% quarter-over-quarter (QoQ).
   • Gross NPA: Similarly, the Gross NPA also saw a slight decrease to 2.94% from 3.06% QoQ. Although the change is modest,

Hindustan Petroleum Corporation Limited (HPCL)

1. Net Profit:
   • HPCL reported a net profit of ₹2,709.31 crore, which represents a decline of 25% year-over-year (YoY).
2. Total Income:
   • The company’s total income was ₹1.22 lakh crore, down 6% from the previous year.
3. Dividend Announcement:
   • Despite the drop in profit and total income, HPCL announced a dividend of ₹16.50 per share.
4. Bonus Issue:
   • HPCL also announced a 1:2 bonus issue, meaning shareholders will receive one additional share for every two shares they hold. Bonus issues are typically used by companies to reward shareholders without reducing the company’s cash reserves.

The combination of a reduced net profit and total income with the rewarding of shareholders through dividends and a bonus issue presents a mixed financial picture. On one hand, the drop in key financial metrics suggests challenges in the operational or market environment

Bharat Petroleum Corporation Limited (BPCL)

1. Net Profit:
   • The net profit reported at ₹42.24 billion did not meet the estimated ₹54.6 billion. This shortfall might reflect unforeseen expenses or lower operational efficiencies than projected.
2. Revenue:
   • BPCL’s revenue for the quarter was ₹1.32 trillion, surpassing the expected ₹1.15 trillion. This significant revenue beat indicates strong sales performance, possibly driven by higher volumes sold or increased prices, which can be common in the energy sector depending on market conditions.
3. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):
   • The company achieved an EBITDA of ₹92.13 billion, slightly above the estimated ₹90.2 billion.
4. EBITDA Margin:
   • At 6.98%, the EBITDA margin was below the expected 7.8%. The lower margin compared to estimates might be due to higher-than-expected costs relative to the revenue, which, although high, may have included significant costs that affected overall profitability margins.
5. Average Gross Refining Margin (GRM):
   • The GRM of $14.14 per barrel was significantly lower compared to the previous year’s $20.24 per barrel. This reduction in GRM indicates that the profitability per barrel of oil refined has decreased, which can be a concern in terms of operational efficiency and global market pricing dynamics.
6. Bonus Shares and Dividend:
   • The approval of 1:1 bonus share is a positive move for shareholders as it doubles the number of shares they hold, effectively halving the stock price per unit but potentially increasing liquidity. Additionally, the recommendation of a final dividend of ₹21 per share, which translates to ₹10.5 per share post-bonus, is an attractive return to shareholders and reflects the company’s intent to share its success.
7. Exceptional Item:
   • The noted exceptional item of ₹17.98 billion requires further examination as it can significantly impact net earnings.

Overall, BPCL’s Q4 results show a company that has outperformed in revenue and EBITDA against estimates but faced challenges in net profit margins and GRMs.

Punjab National Bank (PNB)

1. Net Profit After Tax (PAT):
   • Quarter-over-Quarter (QoQ): Net PAT has risen from ₹2,432 crore to ₹3,342 crore, representing an increase of 37.4%.
   • Year-over-Year (YoY): The growth is even more impressive on an annual basis, with net PAT more than doubling from ₹1,864 crore last year to ₹3,342 crore.
2. Asset Quality:
   • Gross Non-Performing Assets (GNPA):
     • QoQ: A decrease in GNPA from 6.24% to 5.73% shows effective credit risk management and successful recovery strategies over the quarter.
     • YoY: The drop from 8.74% to 5.73% in GNPA is quite significant and indicates substantial improvement in asset quality over the past year.
   • Net Non-Performing Assets (NNPA):
     • QoQ: NNPA has decreased from 0.96% to 0.73%. This reduction shows that the bank has not only managed its gross NPAs well but has also been effectively provisioning for potential losses.
     • YoY: The reduction in NNPA from 2.72% to 0.73% is particularly noteworthy, reflecting a very strong trend towards better financial health and lower risk exposure.

These figures indicate that PNB has managed to substantially improve its financial performance and asset quality. Such positive trends are critical for restoring investor confidence, especially in public sector banks, which have often faced challenges related to non-performing assets.

Abbott India

1. Net Profit:
   • The net profit has increased by 24.1% YoY to ₹287.1 crore from ₹231.4 crore.
2. Revenue:
   • Revenue grew by 7.1% YoY, rising to ₹1,438.6 crore from ₹1,343.1 crore. While this is a solid increase, the rate of revenue growth is notably slower than that of net profit. This could suggest that the company has successfully implemented cost control measures or possibly improved its product mix towards higher-margin offerings.
3. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):
   • EBITDA has increased by 17.6% YoY, from ₹280.1 crore to ₹329.5 crore. This growth rate exceeding that of revenue implies that the company has enhanced its operational efficiency. EBITDA is a key indicator of a company’s underlying operational performance and profitability before the effects of financing and accounting decisions.
4. Margin Performance:
   • The EBITDA margin has improved from 20.9% to 22.9% YoY. This improvement in margin percentage demonstrates that the company has been able to manage its cost base effectively or achieve a better sales mix favoring more profitable products.

Overall, Abbott India’s financial performance is quite strong, with significant improvements in profitability and operational efficiency. The growth in net profit alongside improved margins indicates that the company is not only increasing its revenue but doing so in a cost-effective manner.

Asian Paints

1. Net Profit:
   • Asian Paints reported a consolidated net profit of ₹12.6 billion for Q4, which is an increase from ₹12.23 billion year-over-year (YoY). This indicates a modest growth in profitability.
   • However, the reported net profit fell short of the estimated ₹13.7 billion. This shortfall against expectations might raise concerns among investors regarding the company’s ability to meet financial projections.
2. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):
   • The company’s EBITDA for Q4 came in at ₹16.9 billion, down from ₹18.6 billion YoY, marking a decline in operational profitability.
   • Additionally, the EBITDA also fell below the expected ₹19.5 billion. Missing this estimate could suggest operational challenges such as increased raw material costs or lower-than-expected sales volume.
3. EBITDA Margin:
   • The EBITDA margin for the quarter was 19.38%, which is a decrease from 21.2% YoY and below the estimated 21.5%.
4. Dividend:
   • Despite the mixed financial results, Asian Paints has recommended a final dividend of ₹28.15 per equity share.

The fact that Asian Paints is currently trading at its lowest P/E ratio in over five years could indicate that the stock is undervalued relative to its historical valuation. Asian Paints trading at the same price as in 2021, despite what you mentioned as “highest ever sales and EPS,” might point to a disconnect between the company’s financial performance and its stock price appreciation. Reporting the highest ever sales and EPS is a strong indicator of robust operational performance. This achievement, especially in a competitive sector like paints and coatings, reflects well on the company’s market positioning and operational efficiency. If the trend in sales and EPS growth continues, it could eventually lead to an upward re-rating of the stock as market sentiment catches up with the company’s financial achievements.

State Bank of India

1. Net Profits and Dividend: An impressive 24% increase in net profits indicates robust profitability, which is further supported by a substantial dividend payout of ₹13.70 per share.
2. Total and Interest Income Growth: The total income rising by 20.11% year-over-year to ₹1,28,412 crore, and the interest income surging to ₹1,11,043 crore, demonstrate significant growth.
3. Operating Profit and Net Interest Income: The operating profit growing by 16.76% to ₹28,748 crore, along with a strong net interest income of ₹41,655 crore, shows effective management of core banking operations.
4. Net Interest Margin (NIM): With NIMs holding at 3.32% in FY24, SBI demonstrates its ability to maintain stable profit margins on its lending practices.
5. Improved Asset Quality: The reduction in GNPA to 2.24% and NNPA to 0.57% year-over-year reflects ongoing improvements in asset quality.

Overall, these figures illustrate a thriving financial period for SBI, marked by strong growth in revenues and profits, disciplined risk management, and consistent operational performance.

CAMS (Computer Age Management Services)

1. Revenue Growth:
   • YoY: Revenue has risen from ₹249 crore to ₹320 crore, which represents an increase of about 28.5%.
   • QoQ: Revenue also shows a good sequential growth from ₹249 crore in Q3 to ₹320 crore in Q4, a rise of approximately 15.5%. This consistent growth suggests strong operational execution.
2. Profit Before Tax (PBT):
   • YoY: PBT has significantly increased from ₹98 crore to ₹134 crore, marking an increase of 36.7%. This indicates not only higher revenue but also effective cost management and/or operational efficiencies.
   • QoQ: PBT rose from ₹118 crore in Q3 to ₹134 crore in Q4, showing a solid uptick of 13.6%. This sequential improvement further underscores their capability to manage expenses effectively while scaling up operations.
3. Profit After Tax (PAT):
   • YoY: PAT has seen a strong increase from ₹74 crore to ₹103 crore, a growth of approximately 39.2%. This robust growth in net income highlights successful profitability improvement over the past year.
   • QoQ: PAT improved from ₹88 crore in Q3 to ₹103 crore in Q4, which is an increase of about 17%. This consistent growth from quarter to quarter is a positive sign for investors and the company’s financial health.
4. Operating Cash Flow (OCF):
   • YoY: The operating cash flow has increased from ₹318 crore to ₹402 crore. This 26.4% rise in cash flow is very positive as it reflects the ability of the company to generate cash from its core business activities.
   • The solid increase in operating cash flow suggests effective cash management and the ability to sustain and expand operations without relying heavily on external financing.

Overall, CAMS’s financial performance in Q4 is robust with significant improvements in key financial metrics both YoY and QoQ. The consistent growth in revenue, profitability, and operational cash flow underscores the company’s strong market position and operational efficiency.

Venus Pipes and Tubes

1. Revenue Growth:
   • YoY: Revenue increased from ₹176 crore to ₹224 crore, indicating a robust growth of 27.3%.
   • QoQ: Revenue grew from ₹207 crore in Q3 to ₹224 crore in Q4, showing a healthy sequential growth of about 8.2%. This suggests good execution and possibly increasing demand for their products.
2. Profit Before Tax (PBT):
   • YoY: PBT saw an impressive increase, nearly doubling from ₹18 crore to ₹34 crore.
   • QoQ: There was a modest increase from ₹31 crore in Q3 to ₹34 crore in Q4, which is approximately a 9.7% rise. This indicates continued profitability and operational efficiency.
3. Profit After Tax (PAT):
   • YoY: PAT almost doubled from ₹13 crore to ₹25 crore, mirroring the strong growth in PBT.
   • QoQ: There was a slight increase from ₹23 crore in Q3 to ₹25 crore in Q4. While the growth is modest, it is still a positive indicator of sustained profitability.
4. Operating Cash Flow (OCF):
   • YoY: The operating cash flow showed a dramatic improvement, increasing from ₹8.7 crore to ₹52 crore.

The results indicate that Venus Pipes and Tubes is executing well with considerable improvements in revenue, profitability, and cash flows. Although markets might have expected a sharper QoQ uptick, the consistent growth QoQ alongside significant YoY improvements suggests that the company is on a strong growth trajectory.

Ajmera Realty

1. Revenue Growth: Ajmera Realty’s revenue nearly doubled YoY, growing from ₹114 crore to ₹232 crore. This significant increase indicates robust growth in their business operations and possibly an expansion in market share or introduction of new projects.
2. Profit Before Tax (PBT): PBT increased from ₹19 crore to ₹40 crore YoY, which also signifies a substantial improvement in profitability. However, it’s noted to be flat quarter-over-quarter (QoQ), as the previous quarter was also at ₹40 crore. This flat QoQ growth might indicate that while the company has significantly improved YoY, it has reached a plateau in the short term.
3. Profit After Tax (PAT): PAT has nearly doubled YoY from ₹15 crore to ₹29 crore. However, there is a slight decline QoQ, from ₹30 crore in the previous quarter to ₹29 crore in the current quarter. This slight decrease might need closer inspection to determine the factors influencing the small dip, though it could simply be due to minor fluctuations in expenses or tax obligations.
4. Operating Cash Flow (OCF): OCF saw a significant increase from ₹135 crore to ₹219 crore YoY. This is a positive indicator as it reflects the cash that the company is generating from its core business operations, suggesting not only profitability but also efficient management of working capital and cash cycles.

Overall, Ajmera Realty appears to be performing well with significant improvements in key financial metrics year-over-year.

Disclaimer-

It’s important to note that discussions like are for informational purposes only and should not be taken as specific We are not SEBI registered investment advisor. Whether analyzing a company’s financial health, examining market trends, or discussing technical chart patterns, the goal is to provide insights and perspectives that can help you make more informed decisions according to your own research and investment strategy. Always consider consulting with a financial advisor or conducting thorough personal research before making any investment decisions.