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HDFC Bank in spotlight after Q3 earnings

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Last Updated : Feb 16 2015 | 9:15 AM IST

HDFC Bank's net profit rose 20.2% to Rs 2794.50 crore on 21.4% growth in net revenue (net interest income plus other income) to Rs 8234.80 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.

HDFC Bank's net interest income rose 23% to Rs 5699.90 crore in Q3 December 2014 over Q3 December 2013. The bank's other income (non-interest revenue) rose 18% to Rs 2534.90 crore in Q3 December 2014 over Q3 December 2013.

Net interest margin (NIM) improved to 4.4% in Q3 December 2014, from 4.2% in Q3 December 2013.

HDFC Bank's gross non-performing assets (NPAs) were at 0.99% of gross advances as on 31 December 2014, as against 1.02% as on 30 September 2014 and 1.01% as on 31 December 2013. Net NPAs were at 0.26% of net advances as on 31 December 2014. Total restructured loans (including applications under process for restructuring) were at 0.1% of gross advances as of 31 December 2014 as against 0.2% as of 31 December 2013.

Provisions and contingencies rose 44.13% to Rs 560.40 crore in Q3 December 2014 over Q3 December 2013.

HDFC Bank's current account and savings account (CASA) mix was 40.9% as on 31 December 2014.

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The bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines as at 31 December 2014 stood at 15.7% as against a regulatory requirement of 9%. Of this, Tier-I CAR was 11.97%.

HDFC Bank had on 5 February 2015 made concurrent Qualified Institutions Placement (QIP) of 1.87 crore equity shares at Rs 1,067 per equity share and a public offering of 2.20 crore American Depository Shares (ADSs), each representing three equity shares, at a price of $57.76 per ADS. The aggregate funds received from these issuances were Rs 9766 crore, HDFC Bank said.

Shares of public sector oil marketing companies (PSU OMCs) will be in focus after petrol price was hiked by Rs 0.82 a litre and diesel by Rs 0.61 a litre in Delhi with corresponding increase in other states. The petrol and diesel price hike, which was effective from midnight of Sunday, 15 February 2015, is the first increase since August 2014 and follows firming of oil prices in the international market. PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.

HDFC's consolidated net profit rose 12.61% to Rs 2179.01 crore on 18.89% growth in total income to Rs 11952.48 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.

ONGC's net profit fell 49.88% to Rs 3571.20 crore on 13.66% decline in total income to Rs 20302.02 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.

The impact on ONGC's gross revenue due to subsidy burden declined 31.28% to Rs 9458 crore in Q3 December 2014 over Q3 December 2013. The impact on profit after tax (PAT) declined 29.58% to Rs 5386 crore in Q3 December 2014 over Q3 December 2013.

Sun Pharmaceutical Industries' (Sun Pharma) consolidated net profit fell 6.92% to Rs 1425.07 crore on 1.91% decline in total income to Rs 4361.85 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.

Eicher Motors' consolidated net profit surged 59.76% to Rs 153.77 crore on 36.29% growth in total income to Rs 2308.86 crore in Q4 December 2014 over Q4 December 2013. The result was announced after market hours on Friday, 13 February 2015.

Eicher Motors' consolidated net profit jumped 56.2% to Rs 615.36 crore on 28.1% growth in total income to Rs 8845.76 crore in the year ended 31 December 2014 over the year ended 31 December 2013.

Eicher Motors' board of directors at its meeting held on Friday, 13 February 2015, changed the financial year of the company from January-December to April-March. Accordingly, the current financial year of the company will be of a period of fifteen months commencing on 1 January 2015 and ending on 31 March 2016.

In terms of RBI Circular dated 19 March 2012, Eicher Motors said that its board of directors on Friday, 13 February 2015, approved a proposal to increase the aggregate foreign institutional investment limit, under the portfolio investment scheme, to 49% of the company's total paid up share capital subject to the approval of shareholders by special resolution.

Eicher Motors' board of directors recommended dividend of Rs 50 per share for the year ended 31 December 2014.

Rural Electrification Corporation's (REC) net profit rose 12.39% to Rs 1379.83 crore on 19.04% growth in total income to Rs 5244.32 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours on Friday, 13 February 2015.

REC's board of directors at its meeting held on Friday, 13 February 2015, declared payment of interim dividend of Rs 8 per share for the year ending 31 March 2015. The record date for the purpose of payment of interim dividend is 20 February 2015.

Suzlon Energy reported a consolidated net loss of Rs 6538.68 crore in Q3 December 2014, much higher than net loss of Rs 1075.25 crore in Q3 December 2013. Total income declined 1.51% to Rs 4986.56 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.

Meanwhile, Suzlon Energy said it has signed definitive agreements with Dilip Shanghvi Family and Associates (DSA) for equity investments of Rs 1800 crore in Suzlon Energy. As part of the deal, Suzlon Energy's board of directors at its meeting held on Friday, 13 February 2015, approved issuance of up to 100 crore equity shares of the company to DSA on preferential allotment basis. The board also approved divestment in SE Forge, a wholly owned subsidiary of Suzlon Energy. The company intends to conduct a postal ballot for seeking approval of its shareholders for the aforementioned transactions. Post allotment, DSA shareholding will be 23% shares (based on current shareholding), while the Tanti Family will hold 24% shares. Management control remains with Tanti Family by virtue of pooling arrangement for voting, Suzlon Energy said in a statement.

Suzlon Energy's pact with DSA triggered an open offer for acquisition of upto 157.64 crore equity shares of face value of Rs 2 each of Suzlon Energy, from the public shareholders of the company, representing 26% of emerging voting capital of Suzlon Energy. The offer price is Rs 18 per fully paid-up equity share aggregating to Rs 2837.58 crore. The offer price is also subject to finalization of the price for the proposed preferential issue of equity shares as on the relevant date, i.e. 16 February 2015.

DSA & Suzlon intends to form equal joint venture (JV) for wind farm development business. The JV will develop 450 megawatts (MW) wind farms within a stipulated period of time. DSA also intends to assist in providing incremental project specific non-fund based working capital facility to Suzlon for execution of the said project. Further, DSA intends to provide credit enhancement to the lenders of Suzlon for additional project specific working capital facilities. This move will help Suzlon in getting much needed working capital financing support and will be a catalyst for volume ramp up, Suzlon Energy said in a statement. The above transactions are subject to closing conditions, including corporate and other regulatory approvals, Suzlon Energy said.

Mr Tulsi Tanti, Chairman, Suzlon Group, said All the strategic initiatives are extremely crucial and will pave the way for our growth. These bold steps will strengthen our capital structure permanently, enabling significant deleveraging and liquidity to ramp up volumes rapidly. With our market leadership, technology strength, successful project execution and best in class service, Suzlon is best placed to capitalize on the opportunities offered by the renewable sector. We are convinced that the support from Dilipbhai Shanghvi and Family will help in creating a long term sustainable value for our stakeholders.

Mr Tanti added that Suzlon is poised to enter FY 2016 with a strong liquidity position to tap the opportunity available in India as well as key growth markets like USA, China, Brazil, South Africa, Turkey and Mexico.

Amit Agarwal, CFO of Suzlon Energy said that these initiatives will result in sizeable debt reduction, savings on interest expense and will provide the necessary liquidity to boost operations. These efforts resulted in positive EBIT in this quarter in addition to positive EBITDA for the fourth consecutive quarter, Agarwal said. He further added that the company continues to focus on execution of its order book.

Andhra Bank after market hours on Friday, 13 February 2015 said that its board of directors through a circular resolution on 13 February 2015, approved for preferential allotment of equity in favour of Government of India to the tune of Rs 120 crore (including premium), subject to shareholders' approval at the ensuing EGM.

Reliance Communications' consolidated net profit rose 31% to Rs 201 crore on 1.2% growth in revenue to Rs 5469 crore in Q3 December 2014 over Q2 September 2014. The result was announced after market hours on Friday, 13 February 2015.

The company's consolidated EBITDA (earnings before interest, taxation, depreciation, and amortization) rose 1.3% to Rs 1851 crore in Q3 December 2014 over Q2 September 2014. EBITDA margin of 33.8% maintained at the same level as Q2 September 2014, the company said in a statement.

Revenue from India operations rose 2.5% to Rs 4799 crore in Q3 December 2014 over Q2 September 2014. Revenue from global operations rose 23% to Rs 1236 crore in Q3 December 2014 over Q2 September 2014.

Reliance Power's consolidated net profit declined 4.78% to Rs 254.44 crore on 23.12% growth in total income to Rs 1826.57 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.

Unitech's consolidated net profit rose 32.02% to Rs 43.33 crore on 9.02% decline in total income to Rs 721.98 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours on Friday, 13 February 2015.

Unitech said it has a healthy balance sheet with a net debt to equity ratio of 0.57. Net debt as of 31 December 2014 was Rs 6300.84 crore.

Commenting on the company's financial performance, Mr. Sanjay Chandra, Managing Director, Unitech said, Demand for residential space continues to be sluggish and it may take a few more quarters for the demand to revive. The company has been taking measures over the last few quarters to deal with this challenging environment and these have begun to bear fruit. Expected moderation in interest rates combined with various steps being taken by the government to boost the economy should have a salubrious effect on the real estate sector in the coming months. The company is gearing up to take advantage of the impending revival in the sector.

Shares of Genus Paper & Boards (GPBL) will be listed for trading on the stock exchanges today, 16 February 2015, pursuant to the scheme of arrangement (demerger) earlier announced by Genus Power Infrastructure (GPIL). As per the scheme, the shareholders of GPIL will be allotted 1 equity share of Re 1 each in GPBL for every 1 equity share of Re 1 each of GPIL. Also, the shareholders of GPIL will continue to hold equity shares of face-value of Re 1 each in GPIL.

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First Published: Feb 16 2015 | 7:59 AM IST

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