Q1 Results FY2023: As the earnings season is ongoing, two listed companies Bank of Maharashtra and HeidelbergCement India annouced their April-June quarter results. Here are key highlights of the results.
Bank of Maharashtra Q1 Results FY2023: net jumps over 2-fold to Rs 452 cr on higher NII, better asset quality
State-run Bank of Maharashtra on Monday reported a more than two-fold jump in net profit to Rs 452 crore in the April-June quarter, helped by a healthy net interest income and improvement in asset quality.
The lender had reported a net profit of Rs 208 crore on a standalone basis in the similar quarter of the fiscal 2022.
The bank’s Managing Director and Chief Executive Officer A S Rajeev said despite transfers and promotions of employees, the bank performed well and its net profit grew by 117.25 per cent during the first quarter of the current fiscal.
“We envisage a higher growth from the second quarter onwards and are very positive on the future growth,” Rajeev told reporters.
Net interest income (NII) rose by 20 per cent to Rs 1,686 crore as compared to Rs 1,406 crore in the Q1 of FY22.
Net interest margin (NIM) improved to 3.28 per cent from 3.05 per cent.
Asset quality of the bank saw improvement with gross non-performing assets (GNPAs) easing to 3.74 per cent from 6.35 per cent. Net NPAs also fell to 0.88 per cent from 2.22 per cent.
Fresh slippages were to the tune of Rs 697 crore.
Shares of the bank rose by 3.11 per cent to close at Rs 16.6 apiece on BSE.
Rajeev attributed the higher number to slippage of one account worth Rs 287 crore from the sugar sector based out of Uttar Pradesh during the quarter. The lender, however, has made 100 per cent provision for the slipped account.
Recovery and upgradation in the reporting quarter stood at Rs 388 crore. It also recovered Rs 130 crore from the written off accounts.
“We have set a cash recovery target of Rs 3,000 crore during FY23,” Rajeev said. The bank expects recoveries from the resolution of bad loans which are to be transferred to the National Asset Reconstruction Company Ltd (NARCL) during the year.
It also sees recoveries from stressed accounts including Religare Group, Srei Group and Infrastructure Leasing and Financial Services (IL&FS).
The Pune-based lender’s provision coverage ratio improved to 95.04 per cent from 90.70 per cent. Total provisions declined to Rs 750 crore from Rs 899 crore in the year-ago period.
Its total Basel III capital adequacy ratio improved to 16.15 per cent with common equity tier 1 ratio of 12.16 per cent for Q1 FY23.
Rajeev said the bank may look at raising Rs 1,000 crore through tier 1 and tier 2 bonds in the current quarter.
“For the current fiscal, we are well capitalized. However, if the equity market improves, we may go for equity raising of Rs 1,000 crore in Q3 or Q4 of FY23,? he added.
As of June 20, 2022, gross advances grew by 27.10 per cent on Y-o-Y basis to Rs 140,561 crore and deposits by 12.35 per cent to Rs 195,909 crore.
The bank expects a credit growth of 20-22 per cent and deposit growth of 12-14 per cent in the current fiscal.
Rajeev said the lender is focusing more on the mid-corporate segment, which is a yield increasing segment.
It has a sanctioned pipeline of Rs 20,000-22,000 crore in corporate loans and another Rs 6,000-7,000 crore in MSME and other segments.
Bank of Maharashtra shares today ended at Rs 16.70 on the NSE, up nearly 4 per cent from the Friday closing price.
See Zee Business Live TV Streaming Below:
Q1 HeidelbergCement India Results FY2023: Q1 profit falls 25% to Rs 52 cr
HeidelbergCement India on Monday reported 24.82 per cent decline in net profit at Rs 51.61 crore for June quarter 2022-23, impacted by an increase in operating cost.
The company had reported a net profit of Rs 68.65 crore in April-June period a year ago, said HeidelbergCement in a BSE filing.
However, revenue from operation increased 6.10 per cent to Rs 589.89 crore during the quarter under review from Rs 555.94 crore in the year-ago period.
“On a per tonne basis, total operating cost including freight increased by 24 per cent y-o-y due to an unprecedented increase in coal, petcoke, diesel and packaging costs. The increase in operating cost was partially offset by an increase in prices by 13 per cent resulting in EBITDA of Rs 855 per tonne, a decrease of 23 per cent y-o-y,” said an earning statement by the company.
Its sales volume slipped 6.08 per cent to 1,112 kilo tonne during the quarter from 1,184 kilo tonne in the year-ago period.
Revenue increased year-on-year driven by an increase in prices by 13 per cent and partially offset by a decrease in volume by 6 per cent, it said.
Total expenses were higher at Rs 530.84 crore as against Rs 462.60 crore earlier.
HeidelbergCement India stock on Monday settled at Rs 177.35 on BSE, up 0.17 per cent from the previous close.