Asian Paints, Bajaj Finance, Axis Bank, and Tata Consumer Products result declared

On 20th October 2022 many companies that are part of the Nifty 50 and are amongst the leading large-cap companies have declared their results.

Here are some of the key takeaways from the results of Asian Paints.

Asian Paints

• Asian reported a 31.3% YoY rise in consolidated net profit for Q2FY23 at Rs 782.71 crore.
• Consolidated revenue for Q2FY23 rose 19% YoY to Rs 8,457.6 crore.
• Consolidated EBITDA for the quarter rose by nearly 36% on year to Rs 1,227.70 crore, and the margin expanded 177 basis points to 14.52%.
• Raw material cost in the quarter rose nearly 8% YoY to Rs 4,925 crore, while other income slumped 31% to Rs 95.5 crore.
• The company said its international business sales increased by 15.3% in the quarter to Rs 805.99 crore.
• Bath Fittings business sales increased by 10.9% to Rs 101.77 crore and Kitchen business sales increased by 14.2% to Rs 117.83 crore.

Management Speak

Commenting on the results, Amit Syngle, Managing Director & CEO, said “The domestic Decorative business showed resilience to deliver a double-digit volume growth and healthy value growth despite subdued demand conditions, impacted by the extended monsoon. The business focus on the top line is evident from the double-digit compounded growth rates in volume and value sales for the sixth quarter in a row. The Home Décor business continued to gain traction with a focus on Lighting, Kitchen, and Bath along with the proliferation of our Beautiful Homes Stores and the Home Décor implementation arm, Beautiful Homes Service, across markets.

Axis Bank

• Axis Bank reported a consolidated net profit of Rs 5,330 crore in Q2FY23 which is up 70% YoY as against Rs 3,133 crore in Q2FY22.
• The bank’s net interest income (NII) grew 31% YoY to Rs 10,360 crore in Q2FY23 from Rs 7,901 crore in Q2FY22.
• Net interest margin (NIM) for Q2FY23 came at 3.96%, up 57% on a YOY and 36% on a QOQ basis
• Provisions in the quarter under review fell to Rs 550 crore in Q2FY23, as against Rs 1,735 crore in Q2FY22.The gross non-performing asset ratio dropped to 2.5% in Q2FY23, from 2.76% a quarter ago and 3.53% a year ago.

Management Speak

In a press statement, Amitabh Chaudhry, MD, and CEO of the bank quoted on the bank’s expansion plans. “We are building a high-quality, granular franchise with the customer at the centre, while extending our network and services to semi-urban and rural geographies to tap into the Bharat opportunity.”

You may also like: NIFTY FMCG sector grew 17% post Q1FY23 

Bajaj Finance

• Bajaj Finance reported the highest-ever consolidated quarterly consolidated profit after tax (PAT) of Rs 2,781 crore for Q2FY23, up 88% percent from Rs 1,481 crore recorded in Q2FY22. Sequentially, net profit jumped 7% from Rs 2,596 crore.
• Net interest income (NII) for Q2FY23 increased by 31% YoY to Rs 7,001 crore from Rs 5,337 crore in Q2Fy22.
• New loans grew by 7% YoY to 67.6 lakh.
• Consolidated assets under management (AUM) rose 31% to Rs 2,18,366 crore in Q2FY23 as against Rs 1,66,937 crore in Q2FY22.
• Gross NPA and Net NPA in Q2FY23 stood at 1.17% and 0.44%, respectively, as against 2.45% and 1.10% in Q2FY22. Gross NPA and net NPA were 1.25% and 0.51%, respectively in Q1FY23.
• In Q2FY23, Bajaj Housing Finance, a fully owned subsidiary of Bajaj Finance, delivered a post-tax profit of Rs 306 crore as against Rs 166 crore in Q2FY22.

Management Speak

In a press release, the company said, “Bajaj Finance is on track to go fully digital across all products and services by March 2023. Phase 1 of the app platform is live on both Google and Apple app stores. Phase 2 will go live in 3 sprints. Sprint 1 of phase 2 is now live on Play Store while Sprint 2 is on track. Sprint 2 will have end-to-end journeys for fixed deposits, business loans, doctor loans, and chartered accountant loans. Sprint 2 will also have new feature additions in fixed deposit services, and insurance services along with service-related nudges and reminders.”

Tata Consumer Products

• Tata Consumer Products reported a 36% YoY growth in consolidated net profit at Rs 355 crore in Q2FY23. Sequentially, profit rose 28.4%.
• Consolidated revenue came in at Rs 3,363 for Q2FY23, an increase of 11% over the same period last year. Sequentially, revenue rose 1.1% from Rs 3,326 crore.
• The company’s EBITDA for Q2FY23 grew 4% YoY to Rs 438 crore. EBITDA margin however declined 100 basis points YoY to 13%, impacted by international business profitability.
• Led by normalised store operations and a revival in out-of-home consumption, Starbucks recorded a revenue increase of 57% YoY for the quarter.
• Starbucks also opened 25 new stores, the highest ever number of quarterly store openings in its history, and entered 5 new cities. The total number of stores is now 300 across 36 cities, informed the company.
• Tata Consumer Products’ international business revenue was up 7% for the quarter (+6 percent in constant currency terms) at Rs 839 crore.

Management Speak

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said. “We delivered another quarter of double-digit revenue growth while balancing margins despite inflationary pressures, weakness of the currency, and some lag in pricing in international markets. While unprecedented inflation and adverse currency movements in our international business have weighed on our margin this quarter, we will be driving structural cost-saving initiatives to improve the trajectory going forward.”

ABOUT THE AUTHOR

Ketan Sonalkar (SEBI Rgn No INA000011255

Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

You may also like: US market trends