The Indian markets have suddenly bounced back from the 17000 range and are currently trailing around 17700 to 17800 points. The reason behind the same is global market support and better than expected results for the Indian companies. The entire result event was surrounded by major world events like Ukraine and Russia War, UK Prime Minister Scenario, European Energy and Economic Crisis, USA Data Output announcements etc. Thus the results of the companies and an additional boost of these events created a sharp rally of almost 700 points in the Indian markets.
The major Indian companies like ICICI Bank, HDFC Bank, Bajaj Finance, Ultratech Cement etc have posted their results for this quarter. The I.T companies and their results have already been mentioned in the I.T. result article. Thus let’s discuss the major companies and their results alongside the sectoral results for this quarter.
The second largest bank of the Indian Financial System has seen a rise in profits of 37%. The YoY profit has risen from 5511 Crore Rs to 7557 Crore Rs. The bank also recorded a heavy increase in the interest income at 26.5%. The interest income for previous year at same time was 11690 Crore Rs which has increased to 14787 Crore Rs. The loans at ICICI have grown by 23% and the domestic growth is recorded at 24% in the same. Alongside this the retail loans have increased by 25% and the business banking portfolio grew by 44%.
Kotak Mahindra Bank
The profits grew by more than 25%. The profits on a YOY basis were 2032 Crore Rs previously which increased to 2581 Crore Rs. Also the net interest income has grown by 27%. The interest income recorded previously was 4021 Crore Rs which went up to 5099 Crore Rs this year.
For the cement company the profits have gone down to 756 Crore Rs. This is a hit of 42% in profits. However on the other hand sales have gone up to 13893 Crore Rs or 15.6% on a YOY Basis. This is a result of heavy competition in the segment faced due to the entry of Adani Group through the takeover of Holcim Group’s assets.
The company faced a huge hit of 87% in profits. This has been due to the sharp fall in prices of raw materials and govt.’s unfriendly policies on exports. The profits have gone down from 7179 Crore Rs to 915 Crore Rs. However the revenues for the company have jumped from 32503 Crore Rs to 41778 Crore Rs. This means a 28% jump in the same. The decreased profits are on accounts of increased expenses incurred by the company. The expenses have gone up from 24621 Crore Rs to 43354 Crore Rs. This accounts to more than 78% jump in the expenses incurred.
The net profit for HDFC Bank goes up by 22%. The profit recorded is 11125 Crore Rs. Also the advances by the bank grew by 22.8%. The advances given previously were 1249331 Crore Rs which has gone to 1533945 Crore Rs.
Bajaj Finance and Bajaj Finserv have posted a rocking growth on a YOY basis. The net sales for Bajaj Finance in Sept 2021 were 6595 Crore Rs which has gone up to 8327 Crore Rs. This is more than 1800 Crore Rs. The Operating income has also increased from 6808 Crore Rs to 8602 Crore Rs. The PAT registered for Sept 2021 was 1305 Crore Rs which has shot up to 2472 Crore Rs for Sept 2022. For Bajaj Finserv the Profits have gone up by 39% on a YoY basis. The consolidated PAT recorded is 1557 Crore Rs.
The profits for Nestle have gone up by 8% to 668 Crore Rs. The sales for Nestle have gone up by 18.2% at 4591 Crore Rs. The profit recorded has beaten the street’s estimate of 648 Crore Rs. The company has also declared a dividend of 120 Rs per share.
Indian Stock Market and Result
The results justify that the financial segment has completely dominated every other segment in this quarter of the financial year. This has been a result of the increased interest rates which has given the bank an increased flow of income. Alongside this the business growth and expansion has encouraged the businesses to pick up more loans from the banks. Also the Indian Financial System is considered as a safe haven currently due to the build statement from the Finance Minister about chances of recession.
However the results for other segments is quite lower than expected which denotes that sales have been mild for other segments which indicates a low demand of goods and services which was the target for the government behind the interest rate hike. However one can assume a good recovery in the sales of other segments in the upcoming time in a slow and gradual phased manner.