Category: Earnings

ICICI Securities revenue jumps over 74% to ₹1,543 crore; declares dividend of ₹17 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Securities on Thursday, April 18, reported a consolidated net profit of ₹536.5 crore in the January-March quarter of the financial year 2023-24, compared to ₹262.7 crore the company had declared a year ago in the same period.

The ICICI Group firm’s consolidated revenue rose 74.4% on a year-on-year (YoY) basis to₹1,543.2 crore in Q4FY24. The company had posted a revenue of ₹884.8 crore in the year-ago period. The strong jump in growth came on the back of a rise in broking income in the cash segment and growth in the Investment banking segment.

ICICI Securities consolidated EBITDA rose more than 96% to₹1,079.3 crore in the fourth quarter of the financial year 2023-24. The EBITDA in Q4FY23 came in at ₹550 crore.

#4QWithCNBCTV18 | ICICI Securities reports #Q4 earnings👇

➡️Cons profit at ₹536.5 cr vs ₹262.7 cr (YoY)
➡️Cons revenue up 74.4% at ₹1,543.2 cr vs ₹884.8 cr (YoY)
➡️Cons EBITDA up 96.2% at ₹1,079.3 cr vs ₹550 cr (YoY)
➡️Cons margin at 69.9% vs 62.2% (YoY) pic.twitter.com/kM1IGy8aBF

— CNBC-TV18 (@CNBCTV18Live) April 18, 2024

ICICI Securities margin came in at 69.9% in the quarter under consideration, compared to 62.2% declared a year ago in the same quarter.

ICICI Securities dividend news

The board of ICICI Securities also approved the payment of a second interim dividend of ₹17 per equity share of face value of ₹5 each to its shareholders. The record date for the same will be April 16 and the dividend amount will be credited on or before May 18.

ICICI Securities share price

ICICI Securities share price corrected 1.3% in trade today, settling at ₹703.15 apiece on the NSE at close. The scrip has corrected nearly 4% in the last five sessions, but the one-year return on the stock is over 52%.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apollo Hospitals’ MD expects rate standardisation discussions with govt post-elections

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Suneeta Reddy, Managing Director at Apollo Hospitals expects discussions with the government on standardising rates for different medical procedures to happen post-elections.

In March, India’s top court, responding to a public interest litigation filed by an NGO, had given the government a month to fix standard rates for different medical procedures.

Private hospitals fear their profits will be severely squeezed if the government imposes a standardised rate like the Central Government Health Scheme (CGHS).

Some procedures are as much as 80% cheaper under the CGHS compared to what they cost at private hospitals.

Reddy said the standardised packages have already been created within the industry. And for Apollo, these packages have been designed in a way that the margins remain intact.

“Our job now is to work with the government as we have done during COVID. To really sensitise people who are looking at these rates about the true cost of health care, and why quality is important. And therefore, why we cannot make compromises. Clearly, it is a discussion which will happen post-elections,” she said.

The company has also been able to absorb the inflation-linked cost increases so far.

“We have absorbed that 5% (inflation last year) and inflation has come down this year compared to previous years. So, I believe that tariff increases will be minimal than what happened in the previous year,” she said.

She also talked about the immediate need to create additional healthcare infrastructure in the country post-COVID to prepare for any future pandemics particularly in non-communicable diseases (NCDs).

In its report titled Health of the Nation 2024 Report released earlier this month, Apollo Hospitals highlighted some alarming trends that suggest that over the last two decades, NCDs have become the leading cause of death in the country.

Also Read | Private hospitals in India fear ‘armageddon’ if costs are standardised

The company had earlier given a revenue growth guidance of 15% for the current financial year (FY25),

Reddy maintained the guidance for now but expects that with new facilities becoming fully operational, the growth could even excess 15%.

The current capitalisation of the company is ₹89,881.23 crore.

For more, watch the accompanying video

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Bajaj Auto Q4 results: Net profit jumps 35% to ₹1,936 crore; auto major declares dividend of ₹80 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Auto declares Q4FY24 results: Bajaj Auto’s standalone net profit jumped 35.1% on a year-on-year (YoY) basis to ₹1,936 crore in the January-March quarter. A CNBC-TV18 poll had expected the quarterly profit to come at ₹1,870 crore. The performance came on the back of higher volumes, an increased share of high-margin products, price hikes and lower input costs.

The Pune-based auto major had reported a 37% year-on-year (YoY) jump in net profit at ₹2,042 crore for the third quarter that ended December 31, 2023.

Bajaj Auto’s revenue increased 29% YoY to ₹11,485 crore. The CNBC-TV18 poll had expected the quarterly revenue to come in at ₹11,118 crore.

Bajaj Auto’s EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at ₹2,307 crore, rising 34.4% YoY from ₹1,716 crore the company reported in Q4FY23. The CNBC-TV18 poll estimated EBITDA at ₹2,211 crore.

#4QWithCNBCTV18 | #BajajAuto reports #Q4 earnings👇

➡️Net Profit up 35.1% at ₹1,936 crore vs ₹1,433 crore (YoY) pic.twitter.com/8QNJxr3214

— CNBC-TV18 (@CNBCTV18Live) April 18, 2024

The margin came in at 20.1%, 80 basis points higher than Q4FY23 results and 30 basis points higher than the CNBC-TV18 poll estimate of 19.8%.

Bajaj Auto dividend news

The Pune-based auto major declared a dividend of 800% per share for its shareholders.

“The Board of Directors has approved/recommended a dividend at the rate ₹80 per share (800%) of face value of ₹10 each on equity shares for the financial year ended 31 March 2024,” the company said in its exchange filing. The dividend will be credited on or around July 19 and the record date for the same is June 14.

Bajaj Auto share price performance

Shares of Bajaj Auto jumped over 2% to an intraday high of Rs9,129 apiece. The stock price has risen over 33% this year so far and nearly 7% in the past 30 sessions.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Infosys Q4 Results: FY25 revenue growth seen between 1% and 3%; Deal wins at $4.5 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Infosys Ltd. expects revenue growth for the financial year 2025 to be between 1% and 3%. A CNBC-TV18 poll of analysts had expected the company to guide for revenue growth to be between 2% and 6% for the current financial year.

For the financial year 2025, Infosys guided for EBIT margin to be in the range of 20% to 22%.

The technology services giant reported a US Dollar revenue decline of 2.1% in constant currency terms. This was lower than the 0.3% decline that the CNBC-TV18 poll had projected. In constant currency terms, revenue declined by 2.2% sequentially, better than the 0.5% decline projected in the analyst survey.

Infosys reported US Dollar revenue of $4,564 million, compared to a CNBC-TV18 poll of $4,650 million.

This is the second consecutive quarterly decline in revenue for Infosys, after the 1% drop in the December quarter.

In Rupee terms, revenue for the quarter stood at ₹37,923 crore, which was lower by 2.3% sequentially, and lower than the ₹38,640 crore estimate.

EBIT margin narrowed by 40 basis points to 20.1% from 20.5% in the December quarter and 60 basis points lower than the CNBC-TV18 poll of 20.7%.

Net profit for the quarter stood at ₹7,975 crore, which was higher by 30% compared to the December quarter, and also higher than the CNBC-TV18 poll estimate of ₹6,180 crore. The profit was aided by an other income component, which stood at ₹2,789 crore, compared to a ₹789 crore figure in the October-December period. This includes the ₹1,916 crore refund it received from the income tax department.

The attrition rate during the quarter stood at 12.6% from 12.9% during the December quarter.

Infosys’ management said that the large deals the company won in financial year 2024, will help them in the new financial year.

For the BFSI segment, MD & CEO Salil Parekh said that he sees the segment doing better in the current financial year compared to the previous one. The BFSI segment contributed 26.4% to Infosys’ topline in the March quarter. Parekh also mentioned that the manufacturing segment may see lower growth this year. The manufacturing segment had a 14% contributing to the March quarter revenue.

Shares of Infosys had ended 1% higher on Thursday at ₹1,429 ahead of the company’s results. The stock has declined nearly 9% over the last month. US-listed shares of Infosys are down 7.5% in pre-open trading.

Track Infosys Q4 results live updates here 

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Infosys declares final dividend of ₹20, special dividend of ₹8; sets record date

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s second-largest software exporter Infosys on Thursday, April 18, announced a final dividend of ₹20 per share for the financial year 2023-24. The IT major has also announced a special dividend of ₹8 per equity share.

Along with ₹35.5 per share dividend announced earlier, the total Infosys dividend for FY24 stood at ₹63.5 per share.

The record date for the payment of the final and special dividends has been fixed as May 31, 2024. The dividend will be paid on July 1, 2024, the company said in a filing.

The Infosys board approved the dividend proposal while announcing the IT giant’s March quarter (Q4FY24) results.

Before this, Infosys declared an interim dividend of ₹18 per share on October 25, 2023, followed by a ₹17.5 final dividend on June 2023.

Shares of Infosys will likely trade ex-dividend on the day or a day before the record date. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment.

An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.

Infosys Q4 results

Infosys reported a net profit of ₹7,975 crore for the quarter, which was higher by 30% compared to the December quarter, and also higher than the CNBC-TV18 poll estimate of ₹6,180 crore.

The IT giant expects revenue growth for the financial year 2025 to be between 1% and 3%. According to a CNBC-TV18 poll of analysts, the company was expected to guide for revenue growth to be between 2% and 6% for the current financial year.

Infosys reported a US Dollar revenue decline of 2.1% in constant currency terms. This was lower than the 0.3% decline that the CNBC-TV18 poll had projected. In constant currency terms, the company’s revenue declined by 2.2% sequentially, better than the 0.5% decline projected in the analyst survey.

The IT major reported US Dollar revenue of $4,564 million, compared to a CNBC-TV18 poll of $4,650 million.

This is the second consecutive quarterly decline in revenue for Infosys, after the 1% drop in the December quarter.

In Rupee terms, revenue for the quarter stood at ₹37,923 crore, which was lower by 2.3% sequentially, and lower than the ₹38,640 crore estimate.

EBIT margin narrowed by 40 basis points to 20.1% from 20.5% in the December quarter and 60 basis points lower than the CNBC-TV18 poll of 20.7%.

The result was announced after market hours and Infosys shares on Thursday ended at ₹1,429.50 on the NSE, up by ₹15.05 or 1.06%.

After falling about 8% so far this year, the stock is now at an important support level but the underlying trend remains bearish. The stock has an important support at ₹1,350 and resistance at ₹1,500. Heavy short positioning ahead of results, with OI up 16% and stock down 2% this expiry, according to domestic brokerage Emkay Global.

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HDFC Life Q4 results: Net profit rises 15%, company misses FY24 guidance on VNB margin

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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HDFC Life Insurance on Thursday (April 18) reported 14.8% rise in net profit to ₹411 crore for the fourth quarter of FY24. In the same period last year, the company had recorded a net profit of ₹358 crore.

Despite this growth, the company’s Value of New Business (VNB) margin experienced a decline, dropping by more than 300 basis points year-on-year to 26.1%, slightly lower than the estimated 27.7%.

The VNB also saw a decline, standing at ₹1,234 crore compared to ₹1,511 crore in the same period last year.

In terms of total Annualised Premium Equivalent (APE) for Q4, HDFC Life recorded ₹4,727 crore, down from ₹5,162 crore in the previous year.

Despite these fluctuations, the net premium income of the insurer reached ₹20,488 crore, a 5.4% increase from ₹19,426 crore in the corresponding quarter of the previous year.

However, the company’s solvency ratio witnessed a decline, standing at 187% compared to 203% recorded a year ago.

HDFC Life noted positive growth in Tier 2/3 markets, exceeding industry-level growth by 13%.

Annuity and protection contributed nearly half of the new business premium.

Operating Return on Embedded Value (ROEV) stood at 17.5%, with Indian Embedded Value reaching ₹47,468 crore.

The company proposed a final dividend of ₹2 per share.

In a boardroom change, Deepak Parekh stepped down from the role of Chairman and Non-Executive Director, with Keki M Mistry appointed as the new Chairman of the Board.

Additionally, independent directors VK Viswanathan and Prasad Chandran will cease their roles after completing two consecutive terms of five years each on April 24, 2024.

Venkatraman Srinivasan has been appointed as an Independent Director to fill the vacancy.

Following the earnings announcement, shares of HDFC Life were trading nearly 0.95% up at ₹610.20 apiece on the BSE.

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Infosys Q4 Results LIVE Updates: ADR slips 7.5% in pre-market trading, declares a final dividend of ₹20

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Infosys Q4 Results LIVE Updates: IT services giant Infosys on Thursday, April 18, reported its earnings for the January to March 2024 quarter. The technology services giant reported a US Dollar revenue decline of 2.1% in constant currency terms. In constant currency terms, revenue declined by 2.2% sequentially. Ahead of the earnings announcement, Infosys shares traded almost a percent higher.

Infosys Q4 results LIVE updates here

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nokia sees stronger H2 after Q1 comparable profit grows less than expected

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Finnish telecom gear maker Nokia reported on Thursday a smaller rise than expected in first-quarter comparable operating profit as sales tumbled when operators reduced spending on 5G technology.

Operating profit excluding certain items of income and expenses grew to 597 million euros from a year-earlier 479 million, helped by cost cuts as constant-currency sales fell 19%.

Four analysts polled by LSEG had on average forecast a comparable profit of 663 million euros.

CEO Pekka Lundmark said continued improvement in order intake despite weak markets should boost the second half of 2024.

“We remain confident in a stronger second half and achieving our full-year outlook,” he said in a statement.

The company repeated an outlook announced in January for a comparable operating profit in 2024 of 2.3-2.9 billion euros.

Nokia in January forecast a demand recovery in the second half of 2024. Swedish rival Ericsson on Tuesday said its sales would normalise in the second half after a period of decline.

Both companies have shed thousands of jobs and are cutting costs in response to weak sales of 5G gear amid sluggish demand in North America and slowing investments in India.

Nokia’s comparable gross margin grew to 48.6% from 37.7% in the first quarter.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian banks may report smaller margins and fewer bad loans

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Banks are expected to witness a continued decrease in net interest margins in the January-March 2024 quarter due to tight liquidity and intense competition for deposits.

Below are the key expectations for the quarter.

As of March 22, the loan growth was around 20.1% year-on-year and around 3% quarter-on-quarter.

Low-cost deposit ratio has been declining for the last few quarters, an the downward trend may continue. The current account savings account (CASA) ratio is also likely to continue to decline in the fourth quarter for many players.

There could also be a slowdown in the operating profit growth rate, largely due to a decline in net interest margin and also because of lower trading gains.

Credit costs remain on the lower side for the sector, thereby aiding the bottom line and the return ratios.

However, earnings will be under pressure and there may be a decline for some lenders.

The banking sector is witnessing the best asset quality in over a decade and it will continue to remain in a sweet spot.

Slippages will be on downward trend. However, not too many upgrades are likely.

Key highlights will be the deposit mobilisation as it has lagged loan growth over the last few quarters. Hence, lenders’ outlook, with respect to focusing on deposit growth or slowing down loan growth, will be watched closely.

Kotak Securities estimates for some leading banks:

Brokerage firm Kotak Securities expects State Bank of India to post a net interest income (NII) decline of 0.5% year-on-year and up about 1% on a sequential basis.

Net profit is expected at ₹13,150 crore, down 21% year-on-year and up about 43.6% sequentially.

For Bank of Baroda, Kotak estimates NII to decline 2.2% year-on-year but up about 1.50% quarter-on-quarter.

However, they expect the profit to decline 7.2% year-on-year and about 3.2% sequentially.

For HDFC Bank, where the estimates are only sequential because of the merger of HDFC, Kotak expects NII increase of 3.50% and net profit rise of 22.3% largely aided by the other income.

For ICICI Bank, Kotak expects NII to be up about 3.7% year-on-year but a decline of 1.9% quarter-on-quarter.

Net profit is estimated to be up 4.6% year-on-year but down more than 7% quarter-on-quarter.

For Axis Bank, Kotak securities estimates NII to be up about 8.9% year-on-year and about 2% sequentially.

Net profit of Axis Bank is expected to decline by 1.7% year-on-year but rise 0.7% sequentially.

Speaking to CNBC-TV18, Nitin Aggarwal, Head of BFSI Research, Institutional Equity at Motilal Oswal Financial Services, believes that overall numbers are anticipated to moderate, a process ongoing for over a year.

According to Aggarwal, this quarter there is an expectation of a 6% earnings growth, excluding HDFC Bank for private banks, and approximately 12-13% for PSUs.

“In banking, we think the steadiness will continue in the numbers. We like ICICI Bank, where we are looking at a 16-17% year-on-year earnings growth, and SBI where we are projecting a ₹16,000 crore profit after tax (PAT). From southern private banks, we like IndusInd Bank, where we are expecting stable margins,” he said.

Saurabh Kumar, Senior Analyst for India Banking and Financial Research at JPMorgan, anticipates an increase in credit costs, particularly in the unsecured business.

Kumar will keenly watch the guidance on the current financial year’s loan and balance sheet growth.

Kumar noted that banks are likely to be valued based on growth prospects, as Indian banks’ credit quality remains among the strongest in the Asia Pacific region. Therefore, investors will focus heavily on growth opportunities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TSMC outlook beats estimates as AI demand helps propel business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Taiwan Semiconductor Manufacturing Co. expects revenue to rise as much as about 30% this quarter, reflecting a boom in AI development that’s boosting demand for the advanced chips it makes for the likes of Nvidia Corp.

The better-than-projected outlook follows its first profit rise in a year, after strong AI demand revived growth at the world’s biggest contract chipmaker. The main chipmaker to Nvidia and Apple Inc. expects revenue of $19.6 billion to $20.4 billion in the June quarter, versus estimates for about $19.1 billion.

Taiwan’s largest company last week disclosed its fastest sales growth since 2022, suggesting demand for the chips that accelerate artificial intelligence development is beginning to offset the fallout from a smartphone market slump. Apple, which accounted for about a quarter of its revenue in 2023, started the year with a deep decline in Chinese iPhone sales.

TSMC has gained about $340 billion of market value since an October 2022 trough, riding bets it will become one of the clearest winners of a global boom in AI development. The company set a 2024 capital expenditure budget of $28 billion to $32 billion at the start of the year. On Thursday, it recorded a better-than-projected 9% rise in net income to NT$225.5 billion ($7 billion) for the March quarter.

It said in January it expects revenue to grow by at least 20% this year as the broader semiconductor market recovers, though uncertainty persists given global macroeconomic volatility. Key supplier ASML Holding NV — the sole provider of the world’s most advanced chipmaking machines — reported a 22% miss on first-quarter bookings Wednesday.

Longer term, investors expect AI-focused chips to gradually take up a larger proportion of revenue. TSMC’s AI revenue is growing at a rate of 50% annually, the company said in January. Still, some investors have warned that the current level of AI chip demand is unsustainable over the long run. Others remain wary given the uncertainty hanging over the Taiwan Strait, the narrow body of water between China and an island it views as part of its territory.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow