State Bank beats analysts' forecast

RESULTS REVIEW

(Rs in crore)

Q3FY04

Q3FY03

% Chg

Interest earned

7437.43

7705.48

-3.48

Other income

1121.91

1361.44

-17.59

Interest expended

4664.44

5309.99

-12.16

Net interest income

2772.99

2395.49

15.76

Operating profit

1800.29

1872.61

-3.86

OPM (%)

21.03

20.65

-

Net profit

919.44

787.05

16.82

Net margin (%)

10.74

8.68

-

Quarterly EPS (Rs)

17.47

14.95

-

Trailing 12-month EPS (Rs)

67.37

Price-earnings ratio

8.76

 Analysts forecast an EPS of Rs 82 for FY04 and Rs 93 for FY05. The stock currently trades at levels of Rs 590 and a 12-month trailing P/E of 8.76.  "SBI is still relatively inexpensive compared to its private sector peers," says Mr Sejal Doshi, a banking analyst with Karvy Stock Broking.  The bank is well positioned to leverage on its retail lending side and with increasing focus on technology it is narrowing the gap between itself and private sector banks.  ASHOK LEYLAND
Lower interest charges lift bottomline
Ashok Leyland, the country's second largest commercial vehicle (CV) manufacturer, recorded a 63.07 per cent rise in net profit for the third quarter.  The company's net sales grew 49.68 per cent, lower than the 60 per cent rise in volumes due to lower prices. Operating margins have declined on account of higher raw material cost. Lower interest charges contributed significantly to higher bottomline growth.

• Interest cost fell 65 per cent to Rs 4.5 crore - thanks to the company