Quarterly Result Updates : Tech Mahindra, SBI Life and Others

Quarterly result announcements are the major focus in the current stance and many companies are outperforming their financials for the previous year and the last quarter as well. However Tech Mahindra lagged in this criteria and is suffering a decrease in its business given the business situation in the US and UK. However the banking and finance business is on the rise and all the banks and financial companies are giving out better performance reports. The same is the case with SBI Life Insurance. The company has reported an increase in revenue and profitability as well.

Tech Mahindra

The IT major recorded a major decline in net profit at 26%. The profit was 1125 Crore Rs with the revenue remaining at 13718 Crore Rs. The profit figures for March 2022 were at 1545 Crore Rs. The revenue of the firm was up by 13% on a year on year basis. The earnings before interest and tax were at 9.6% and this missed the street estimates of 12%. 

Based on the management statement the company’s EBIT is less given their investments into the future scope of business. On the other hand the revenue of the firm’s top 5 clients have been down by 20% which is a major loss for the firm. The company won new deals worth 592 Million dollars in this quarter which is lower than the previous quarter’s figure of 795 Million dollars (quarter 3) and 1011 Million dollars (quarter 2).

The major analyst firms have reduced their ratings for the company’s further price trend. The rating of reduction in price or neutral price has been given by all analyst firms. 

SBI Life Insurance

The company had witnessed an increase in sales at 3.02%. The net sales were at 21295 Crore Rs against 20671 Crore Rs in the previous year’s quarter. The net profit of the firm was recorded at 776 Crore Rs which was 15.5% up than previous year’s figure of 672 Crore Rs. The earnings before interest, tax, dividend and amortisation was at 1182 Crore Rs up by a mighty 122% than the previous year’s figure of 532 Crore Rs. The March 2023 EPS of the company was 7.76 Rs in comparison to March 2022’s EPS at 6.72 Rs.

Kotak Mahindra Bank

The bank reported a rise in its profit figures at 26%. This amounted to 3495 Crore Rs. The company’s figures have beaten the street estimates and hence its share price has increased by 200 Rs in the last month. The customer addition stood at 2,2 Million and the net customer count was at 41.2 Million. The estimates of the profit figures were placed at 2925 Crore Rs. The net profit of the firm for previous year stood at 2767 Crore Rs. The NII of Kotak Mahindra Bank increased by 35% from 4521 Crore Rs in March 2022 to 6103 Crore Rs in March 2023. The gross Non performing assets ratio was at 1.78% and the Net Non performing assets ratio stood at 0.37%. This has improved substantially from 1.90% and 0.43% in December 2022 respectively.

The bank announced a dividend of 1.5 Rs per share and the provision of the company stood at 147.6 Crore Rs a little less than previous year’s figure of 148.7 Crore Rs. The Return on Equity for the firm stood at 14.4% up from 13.4% in the previous year’s quarter and the Return on assets stood at 2.62% in comparison to 2.36% of March 2022. 

IDBI Bank

The bank’s profit figures increased by 64% in this quarter. This was close to 1133 Crore Rs. Also the net interest income of the bank stood at 3279 Crore Rs in comparison to 2420 Crore Rs in 2022. This means a 35% increase in the Net interest income figure. The provisions of the bank jumped by a major 47% to 983 Crore Rs. The gross non performing assets of the bank stood at 6.38% from the 13.82% figure in December 2022. The Net Non Performing assets of the bank were at 0.92% this time from 1.08% in the previous year’s quarter. 

The company also declared a dividend of 1 Re. per share. Its share price is 54.65 Rs. 

IDFC First Bank

The net profit of IDFC First Bank increased by more than 2 times in this quarter. It was at 803 Crore Rs in March 2023. Also on a quarterly basis the net profit is up by 32.7%. The net interest income of the bank was at 3597 Crore Rs as compared to 2669 Crore Rs in 2022. This amounts to a 35% rise in the same. The operating profit of the bank was recorded at 1342 Crore rs which is 61% more than the previous year’s March quarter.