RBL Bank's Q1 result meets estimates; profit up by 35% to Rs 1.9 bn

The bank's provision coverage ratio grew by 250 bps over the previous quarter to 60.41 per cent.

Share Market News » Private sector lender RBL Bank’s first-quarter net profit rose 35 per cent due to rise in interest income. RBL bank’s net profit rose to Rs 1.9 billion in the quarter ended June, in comparison to Rs 1.4 billion in the year-ago quarter. The bank's net interest income rose 46 per cent on a y-o-y basis.

The net interest margin (NIM), the difference between the yield on advances and cost of fund, grew to 4.04 per cent, against 3.8 in the previous quarter and 3.54 in the year-ago quarter. "We have crossed the milestone of 4 per cent and expect to maintain NIM at this level or even improve it, said Vishwavir Ahuja, MD and CEO of RBL Bank.

The gross non-performing assets (NPAs), as a percentage of total advances, in the present June quarter, stood at 1.4 per cent, flat against the previous March quarter. In the year-ago quarter, the gross NPA ratio was at 1.46 per cent.

The bank's provision coverage ratio grew by 250 bps over the previous quarter to 60.41 per cent. "60 per cent is considered a prudent level of provision. This is a comfortable level and we will continue to improve it," said Ahuja.

The deposit and credit grew at 27 per cent and 36 per cent respectively in the full-year period. Wholesale loans form 59 per cent of the bank's books while retail forms 41 per cent. While most of the wholesale loans of the bank comprise of working capital with a tenure less than two years, Ahuja said that the bank was moving towards a greater share of retail loans. "Both segments are showing strong growth and the book would be 50:50 in the next 2-3 years," he added.

Of the total advances, 33 per cent is unsecured. The unsecured book mainly comprises of Microbanking and card business. The capital adequacy ratio for the quarter was 14.23 per cent, an improvement against 13.06 per cent in the previous quarter. The bank does not plan to raise capital for the next seven to eight quarters. During the quarter, the bank took 100% stake in Swaadhar Finserv, which targets Microbanking and medium and small entrepreneurs.

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News Source : BS

TCS shares jump 5.5% to Rs 1,979; m-cap Rs 392.82 bn after Q1 result

The stock was the biggest gainer among the blue chips on both the key indices

 

 

Share Market News » Shares of Tata Consultancy Services surged 5.5 per cent today, adding Rs 392.81 billion to its market valuation after the company posted better-than-expected quarterly earnings.

The stock jumped 5.47 per cent to close at Rs 1,979.60 on BSE. During the day, it climbed 6.28 per cent to Rs 1,995 -- its 52-week high.

At NSE, shares of the company advanced 5 per cent to close at Rs 1,970.

The stock was the biggest gainer among the blue chips on both the key indices.

Led by the sharp gain in the stock, the company's market valuation zoomed Rs 392.81 billion to Rs 757.04 billion.

In terms of equity volume, 11.57 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.

"TCS first quarter results were better-than-expected on all fronts against our/street estimates," Emkay Global Financial Services said in a report.

Country's largest software exporter TCS on Tuesday posted 23.4 per cent rise in consolidated net profit to Rs 73.40 billion for the first quarter ended June 30, 2018.

The company had reported a net profit of Rs 59.45 billion in the same period previous fiscal, TCS said in a regulatory filing.

The Tata Group company -- which accounts for a lion's share of the group's overall profit -- saw its income from operations grow 15.8 per cent to Rs 342.61 billion during the reported quarter, up from Rs 295.84 billion a year ago.

Buying was also seen in other IT stocks, with HCL Tech rising 1.63 per cent, Infosys 1.37 per cent, Wipro 0.65 per cent and Tech Mahindra 0.65 per cent on BSE.

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News Source : BS

TCS Q1 net profit jumps 23.4% to Rs 73.40 billion; revenue up 15.8%

TCS Q1FY19 CC revenue growth at 4.1% QoQ is a meaningful beat to estimates and is highest in several quarters.

 

 

Share Market News » Shares of Tata Consultancy Services (TCS) rose 3% to Rs 1,928 per share on the BSE in early morning trade after the country’s biggest software services exporter posted a better-than-expected rise of about 23.5% year on year (YoY) and 6.3% quarter on quarter (QoQ) in first-quarter (Q1) net profit, helped by strong growth in its banking, financial services and insurance division (BFSI).

TCS has recorded a consolidated net profit of Rs 73.40 billion in April-June 2018 (Q1FY19) versus a profit of Rs 59.45 billion in the same quarter last year. While the revenues at the reported currency grew 15.8% YoY and 6.8% QoQ to Rs 342.61 billion, in constant currency (CC) terms, it rose by 9.3% year-on-year (YoY) and 4.1% sequentially.

Analysts on an average had expected profit of Rs 69.67 billion on revenue of Rs 341.69 billion for the quarter.

“TCS Q1FY19 CC revenue growth at 4.1% QoQ is a meaningful beat to estimates and is highest in several quarters. Revenue recovery has gathered further momentum with a definite growth revival in BFSI and retail verticals. Slowdown in these two verticals had adversely impacted FY18 growth and with the recovery double digit constant currency revenue growth is almost a certainty,” Antique Stock Broking said in a result review.

Overall, FY19 has started on a strong note for TCS. Company will outshine peer group in FY19 with CC revenue growth of ~12% while most of the peer group will grow at mid-single digit. TCS will also report YoY EBIT margin improvement and company has maintained aspirations to achieve 26%-28% EBIT margin range. Robust deal signings in 1QFY19 is after a very strong order booking in 4QFY18, the brokerage firm said with ‘buy’ rating on the stock and 12 month target price of Rs 2,090.

“TCS reported an above-expected operating performance in Q1FY19 driven by a beat on both revenue and margins. With a growth recovery in BFSI services in North America, management is confident of sustaining growth momentum in the medium term. Digital revenue growth accelerated for the fifth straight quarter, rising 44.8% YoY in CC terms,” analysts at BOB Capital Markets said in result review.

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News Source : BS