Quarterly Results (Part 5) : HUL, Banks and More

The Indian markets just witnessed the weekly expiry. The event however was a no show as not much movement was witnessed in the futures and options. However the markets ended below the 18100 levels on 19th January. The markets witnessed the quarterly results of some major firms like IndusInd Bank, Hindustan Unilever, Asian Paints, PVR, Central Bank, Rallis India and others. We are going to focus on these companies. 

IndusInd Bank

This company is one of the most volatile companies in the Nifty50. The stock has moved from a 52 week low of 763 Rs to 1275 Rs and is currently settled at 1200 Rs per share. One of the major reasons for such a sharp rise is the bank’s performance in the previous quarters. IndusInd bank posted a profit of 1963 Crore Rs which is 58% more on a YOY basis. The figures beat the analyst’s estimates for the bank’s performance in this quarter. This quarter has been an excellent event for the bank as not only its net profit was up by the last year’s figures but it also achieved a correction in the gross bad loan figures. The percentage of the same was 2.11% in the previous year’s quarter which is now at 2.06%. This brings down the bad loan amount from 5779 Crore Rs to 5702 Crore Rs.

The major stress in the bank’s loan segment is in the microfinance sector. The amount of the same increased from 885 Crore Rs to 1153 Crore Rs. However the CEO of the bank assured the investors that these numbers would go down significantly over the next 2 quarters.

Hindustan Unilever

HUL is the top ranked FMCG company in India. It has also achieved significant results due to its profit figures beating the Dalal Street estimates. The Net profit of the firm is 2505 Crore Rs for this quarter which is 12% more than the previous year’s quarter. The net profit for the previous year’s quarter was 2243 Crore Rs. The revenue of the firm was up by 16% from 13092 Crore Rs in previous year to 15228 Crore Rs in this quarter. 

The volume growth of the company was as per the estimates of 5% of the analysts. The company’s management stated that they are happy with the financial performance of the firm growing at double figures in both revenue and profits. However one thing that might hit the company is its royalty increase of 80 bps taking the same to 3.45% of turnover to Unilever. The previous royalty paid was 2.65% of the turnover. The segment which performed the best for the firm was Home Care. It gave a 32% increase in revenue and a double digit growth in the volume figures. On the other hand Beauty and Self Care grew by 10% and Foods and Refreshment showed a 7% growth.

Asian Paints

The net profit of asian paints went up by 6% to 1097 Crore Rs. The profit figures were below the street estimates. The effect of the same was witnessed in the share pricing as the valuation fell by 2.69% to 2866 Rs per share. The revenue of the firm was up by 1.28% from 8527 Crore Rs to 8636 Crore Rs. This was a mighty hit for the firm as the revenue was expected to rise by 9 to 10%. 

Central Bank

The banking segment is registering stellar growth this quarter. Another bank shows a double digit growth in profit figures. The profit went up by 64% this quarter. The income from other sources was 94% up at 919 Crore Rs from 474 Crore Rs. The net interest income of the bank was up by 20% to 3284 Crore Rs. One of the best news was the drop in NPA’s of the bank. The figures went down from 27600 Crore Rs to 18490 Crore Rs which is approximately a 33% fall in the same. The advances rose by 15.64% and deposits were up by 0.62%. 

Rallis India

The company’s net profit fell to 22.55 Crore Rs. This was down by almost 17 Crore Rs from 39.55 Crore Rs a year ago. This means the profit dropped by 43% for the firm. Though the profit decreased, the revenue rose slightly above the previous year’s figures to 630 Crore Rs. The exports of the firm were down by 6.5%.

PVR 

The cinema business has been in the news all the time post the COVID crisis. PVR being one of the major companies is looked at as a benchmark for others. The profit of the company rose to 16 Crore Rs. The revenue of the firm rose by 53% in this quarter. The previous year the net loss of the firm was close to 10 Crore Rs. However a strong recovery has been noticed in this quarter in comparison to the previous one. The revenue rose from 614 Crore Rs to 941 Crore Rs.

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