Category: Earnings

NIIT sees early signs of recovery in IT services hiring

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gurugram-based NIIT that specialises in skills and talent development is seeing green shoots of recovery in hiring trends in the information technology (IT) sector.

While NIIT’s tech revenue declined in the third quarter due to a freeze in early-career hiring within IT firms, Vijay K Thadani, VC and MD of the company said the it has been compensated by the hiring in the banking, financial services, and insurance (BFSI) sector.  Revenue from BFSI (which now contributes nearly 30% to revenues) and other programs has increased by 34% year-on-year. Overall revenue declined 9% to ₹85.1 crore from ₹93.2 crore last year. Profit after tax (PAT) was flat at ₹14.3 crore.

The company is now working to de-risk the mix and take advantage of growth sectors.

According to Thadani, there are three areas with significant opportunities. Cybersecurity and cyber risks is one such area. There are also newer areas such as artificial intelligence (AI), where it will be interesting to see how grooming of fresh talent pans out. Another interesting area that has a lot opportunity is decarbonisation, an industry that focuses on reducing carbon dioxide emissions through innovative technologies and strategies, aiming to mitigate climate change impacts and transition towards a low-carbon economy.

Also Read | NIIT explores new frontiers for skill development in changing job landscape

The company has intensified its focus on Global Capability Centers (GCCs) and Tier II GSIs, while also witnessing the scaling up of its BFSI and India Enterprise Business due to increased demand.

With a net cash balance of ₹718 crore, the company is emerging from the negative growth cycle that began in Q4FY23 and is improving its profitability, he noted.

Also Read | Artificial intelligence will affect almost 40% of jobs, IMF says

The stock has shed around 62% over last year. The company’s current market capitalisation is ₹1,797.59 crore.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Key expectations from hospitals and healthcare space | Q3FY24 earnings..

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In the healthcare space, hospitals are expected to report mid-teen growth driven by the average revenue per occupied bed (ARPOB), aided by an improved payor and case mix.

Occupancies, however, could be sluggish for hospitals due to festival season and children’s holidays. Now analysts expect one to two more quarters of growth for hospitals till the high base starts to probably impact growth.

Stock specific – Apollo Hospitals could report as much as over 50% year-on-year growth in profit led by lower losses in Apollo HealthCo. Operational losses are expected to reduce to as much as around ₹10 crore versus ₹38.7 crore according to some analysts for Apollo HealthCo.

The company saw minimal bed addition, which is likely to keep the hospital revenue growth restricted this quarter and the EBITDA growth for the hospital business to around 2-3%.

Medanta Global Health could see occupancies reduced by around 200 to 300 basis points (bps) quarter on quarter due to the festive season. ARPOBs could rise as much as 9% year-on-year. Analysts will be watching for commentary on increased competition in the Indore market for Medanta in particular.

Also Read | Cement Q3FY24 outlook: What experts anticipate on demand and pricing

For Max Health, the Street is expecting double-digit growth of around 14% YoY with stable average revenue per occupied bed sequentially. When it comes to diagnostic companies, one should expect revenue to be driven by volumes. However, one should watch for the festive season to impact the testing numbers.

Dr Lal Pathlabs is expected to report around a 15% growth led by a low base, Metropolis has indicated witnessing an early double-digit growth in terms of revenue for its core business of around 12% YoY.

Also Read | FMCG Q3FY24 outlook: Experts weigh in on likely outperformers amid challenges

Focus on key segments such as preventive testing should aid overall numbers. For example, Jaanch and Arogyam from Thyrocare and premium and specialised testing for Metropolis were the fastest-growing segments for the company in Q2.

For more, watch the accompanying video

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Paytm Q3 results: Revenue rises 38%, net loss narrows to ₹220 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Paytm reported a 38% year-on-year (YoY) increase in revenue for the third quarter of the financial year 2024 to ₹2,850 crore on Friday, January 19. The company — which has not posted a net profit since it went public in November 2021 — said its consolidated net loss narrowed to ₹220 crore from ₹392 crore a year ago.

The company’s EBITDA or earnings before interest, taxes, depreciation, and amortisation before employee stock option (ESOP) grew to ₹219 crore, marking an uplift of ₹188 crore YoY.

Paytm’s profit after tax (PAT) experienced an increase by ₹170 crore YoY to reach ₹222 crore in Q3. The payments business segment recorded 45% YoY growth in revenue, soaring to ₹1,730 crore in Q3FY24.

Paytm’s financial services and other revenue climbed by 36% YoY, reaching ₹607 crore in Q3. On the other hand, the marketing services revenue demonstrated 22% YoY growth, totalling ₹514 crore in Q3.

The net payment margin witnessed a growth of 63% YoY to ₹748 crore in Q3.

Paytm’s contribution profit experienced 45% YoY growth, reaching ₹1,520 crore in Q3. The number of Paytm merchants paying a subscription for payment devices surged to 1.06 crore, marking a 49 lakh YoY increase.

The total loan disbursal value recorded a 56% YoY surge, reaching ₹15,535 crore in Q3FY24.

Paytm’s Average Monthly Transacting Users witnessed an 18% YoY increase, reaching 10 crore in Q3. The gross merchandise value experienced a 47% YoY surge, reaching ₹5.10 lakh crore in Q3.

The cash balance improved to ₹8,901 crore in the third quarter of FY24, up from ₹8,754 crore in Q2FY24.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Reliance Jio Q3 result: Profit rises 3% to ₹5,208 crore, revenue at ₹25,368 crore in Dec quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reliance Industries telecom division Reliance Jio Infocomm saw a sequential profit growth of 3% at ₹5,208 crore for the October to December 2023 quarter, according to the company’s financial results released on January 19. This is slightly higher than the CNBC-TV18 poll profit projection of ₹5,150 crore. The firm registered a profit of ₹5,058 crore in the July to September 2023 quarter.

The telecom company’s revenue rose to ₹25,368 crore for the third quarter of the financial year, as compared to ₹24,750 crore in the preceding quarter. The revenue is largely in line with the poll estimate of ₹25,360 crore.

Jio’s operational performance has improved as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to ₹13,277 crore for the quarter under review from ₹12,953 crore in the last quarter. The EBITDA has come in a little lower than the poll forecast of ₹ 13,450 crore.

The margin, meanwhile, was flat at 52.3%.

Jio’s subscribers’ data is yet to be released and it must be noted that analysts polled by CNBC-TV18 had suggested that the telco’s revenue growth would be driven by a 10 million subscriber addition and a moderate increase in average revenue per user (ARPU).

In the July to September quarter, the company had a total subscriber base of 459.7 million; the company had added 11.2 million subscribers (net), as against 9.2 million in the first quarter of the financial year. The ARPU had come in at ₹181.70 in the September quarter, up from ₹180.50 reported in the April-June quarter.

The data released by the Telecom Regulatory Authority of India (TRAI) for October 2023 showed Jio added 3.1 million subscribers during the month. Following this, the CNBC-TV18 poll of analysts expects the firm will have expanded its subscriber base by 10 million during the third quarter of 2023-24.

Among the other factors, analysts expect the Street to track 5G rollout and adoption. As of the second quarter, Jio’s 5G data traffic accounted for more than 15% of overall data traffic. The rollout of Jio AirFibre and the hike in 4G prepaid tariff will also be key to watch, analysts said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kotak Mahindra Bank Q3 preview: Expect an NII growth of 13.7% YoY

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kotak Mahindra Bank is set to reveal its financial performance on January 20th. According to a CNBC-TV18 poll, the bank expects a net interest income (NII) growth of 13.7% year-on-year (YoY) and a modest 2% sequentially. Profit growth is projected to be 13.2% YoY with a slight decline of 0.9% sequentially.

One of the critical aspects to observe is the loan growth, which is anticipated to remain robust. Motilal Oswal estimates a loan growth of 16.50% YoY and approximately 4% sequentially.

The bank’s deposit growth is also expected to show positive numbers, with Motilal Oswal predicting a 20.50% YoY increase and a 3.50% sequential growth.

Keeping an eye on the net interest margin is essential, and according to Morgan Stanley, it is anticipated to remain stable, staying flat on a sequential basis.

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A noteworthy concern is the declining trend in low-cost deposits across the industry. Last quarter, Kotak Bank’s current account savings account (CASA) ratio was around 48.3%. This trend will be crucial to monitor, considering its impact on the bank’s overall financial health.

Asset quality is expected to witness an improvement, with Motilal Oswal anticipating a decline in the gross Non-performing asset (NPA) ratio to 1.63% from 1.72% in the previous quarter.

Management commentary and outlook will play a pivotal role in understanding the bank’s strategies and potential challenges.

Also Read | Ultratech Cement Q3 result: Profit up over 1.5 times to ₹1,775 cr, revenue at ₹16,740 cr in line with estimate

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Poonawalla Fincorp reiterates guidance after a record breaking quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Poonawalla Fincorp gained over 2.7% on Friday (January 19), the day after the Pune-based shadow bank posted its best-ever quarterly profit of ₹150.4 crore.

In an exclusive interview with CNBC-TV18,  Managing Director Abhay Bhutada reiterated his earlier guidance for 35-40% loan growth over the long term. Long term refers to a period more than a year.

“Our incremental cost of fund is 8% and our average cost of borrowing for the quarter was 7.99%. So, almost flat on a quarter on quarter (QoQ) basis despite Reserve Bank of India (RBI) tightening the policy, increase in the interest rates and market condition, there is no impact on the overall cost of funds,” he added.

Poonawalla’s confidence stands out given the pervasive fears in the market about the shrinking profit margin for lenders, big or small.

Shares of HDFC Bank, one of India’s biggest banks, had its worst fall in three years after its latest earnings showed that the banking giant made less money on new loans; lesser than what the investors had anticipated.

“For one to two quarters, maybe liquidity will be tight in the market. So we don’t see a major impact,” Bhutada said. The company’s net interest margin was up 33 basis points in the latest December quarter.

For a non-banking financier (NBFC) like Poonawalla, the cost of funds would be more expensive due to a recent RBI mandate assigning higher risk weights on unsecured loans. “We don’t see any impact of this RBI circular – we are getting advantage. Because of this lot of players are not able to raise the funds. There is opportunity and we lend to only above ₹50,000 ticket size and the major impact is for the smaller ticket size – those who are lending below ₹ 50,000,” he explained.

Shares of Poonawalla Fincorp (market capitalisation of over ₹38,000 crore as on January 19) have gained over 11% in the last one month.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBL Bank Q3 results: Net profit rises to ₹233 crore, aided by rise in core income

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private sector lender RBL Bank on Friday reported a net profit of ₹233 crore for the third quarter ended December 2023, mainly on the back of a rise in net interest income (NII). It is higher by 11% as compared to ₹208.97 crore in the same quarter last year.

However, the profit figure was much lower than CNBC-TV18’s poll of ₹334.4 crore.

NII, the difference between the interest earned by a bank and the interest paid, grew 21% year-on-year and 5% quarter-on-quarter to ₹1,546 crore, while the net interest margin (NIM) stood at 5.52% as against 5.27% in the same quarter last fiscal.

The lender’s operating profit surged 35% on-year and 5% QoQ to ₹765 crore.

The Gross Non-Performing Assets (NPA) ratio of the bank improved to 3.12% on-year during the quarter under review, against 3.61% during the same period last financial year. The Net NPA ratio also improved to 0.80% during Q3 FY24, against 1.18% in Q3 FY23.

The lender informed the exchanges that its net advances in the December quarter grew 20% on-year and 5% sequentially to ₹79,949 crore while total deposits grew about 13% YoY in the quarter to ₹92,746 crore.

“Our advances and deposits have experienced robust growth with granularity of both sides of balance sheet catching pace. As per our plan, the profitability growth has outpaced balance sheet growth. Notably, our execution of strategic goals, have contributed to our performance. We remain well capitalised to take advantage of opportunities for growth,” said MD and CEO, R Subramaniakumar RBL Bank.

In line with the Reserve Bank of India’s (RBI) diktat on alternative investment funds (AIFs), RBL Bank made a provision of ₹115 crore.

Excluding this contingent provision, the net profit grew 53% YoY and 9% QoQ to ₹319 crore, the bank said.

Shares of RBL Bank Ltd settled 3.37% lower at ₹260.75 apiece on the NSE. The stock has fallen 11% in the last five trading sessions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HUL Q3 Results: Management says operating environment challenging after 2% volume growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hindustan Unilever Ltd. reported volume growth of 2% for the October to December quarter, which was flat on a sequential basis and was lower than the 5% volume growth it reported during the same period last year.

A CNBC-TV18 poll had projected HUL’s volume growth to be between 2% and 3%.

The company in its investor presentation mentioned that the operating environment remains challenging.

India’s largest consumer goods company said that there has been a gradual recovery in volumes, albeit on a soft base and while urban markets continue to remain resilient, rural remains subdued.

HUL reported a net profit of ₹2,519 crore, which was lower than the CNBC-TV18 poll of ₹2,655 crore. On a year-on-year basis, the bottom line was up 0.6%.

Revenue for the quarter stood at ₹15,188 crore, compared to the CNBC-TV18 poll of ₹15,385 crore. Even on a year-on-year basis, HUL’s revenue was nearly the same as the December quarter last year.

EBITDA or Earnings Before Interest, Tax, Depreciation and Amortisation was at ₹3,540 crore, which was marginally lower than the ₹3,695 crore projection from the poll.

EBITDA margin rose by 10 basis points from last year to 23.3% but missed expectations of 24% by 70 basis points.

Among the various business segments, the Home Care business saw revenue decline 1.3% from last year, but the EBIT fell 9%. Even the EBITDA margin of the home care business was under pressure, falling 150 basis points from last year to 17.7%.

Beauty and Personal Care segment’s revenue remained flat from last year, while EBIT increased by 2%. Margins of the BPC segment grew by 50 basis points to 25.6% from 25.1%.

Volume growth for the beauty and personal care business grew in mid-single-digits led by hair and premium skin businesses. The skin cleansing business declined from last year due to price cuts, while the oral care business grew in mid-single digits led by Closeup.

Shares of HUL had ended 0.8% higher at ₹2,567 ahead of the quarterly results.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Reliance Q3 Results LIVE Updates: Jio reports net profit of ₹5,208 crore, revenue at ₹25,368 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reliance Q3 Results LIVE: Reliance Industries Ltd (RIL), the top Indian company by market capitalisation, is set to announce its financial results on Friday (January 19). Reliance Jio posted a 12.2% rise in its net profit for the December quarter to ₹5,208 crore. The net profit stood at ₹4,638 crore in the corresponding period of the previous year. Jio’s revenue from operations increased 10.3% to ₹25,368 crore in the third quarter against ₹22,998 crore in the year-ago period.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ultratech Cement Q3 result: Profit up over 1.5 times to ₹1,775 cr, revenue at ₹16,740 cr in line with estimate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ultratech Cement registered almost 8% year-on-year revenue growth at ₹16,740 crore for the October to December 2023 period, the company’s financial results released on January 18 showed. The revenue is slightly higher than the CNBC-TV18 poll projection of ₹16,649 crore.

The cement maker’s net profit, meanwhile, has jumped 1.6 times or 67% on year to ₹1,775 crore in the third quarter of the 2023-34 fiscal, from ₹1,063 crore in the corresponding quarter last year. The profit is largely in line with the CNBC-TV18 poll estimate of ₹1,739 crore.

In its investor presentation, Ultratech Cement has pointed out that its profit after tax of ₹1,777 crore, which went up 39% sequentially, is the highest ever.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) went up 39.3% YoY to ₹3,254 crore compared to ₹2,335.9 crore in the December quarter. It also registered an operating EBITDA/mt of ₹ 1,208 for India operations, which marks an improvement of 34% YoY and 27% QoQ.

The firm’s margin, in line with CNBC-TV18 poll expectation, has come in at 19.4% versus 15.1% in the same quarter last year.

UltraTech Cement added that its realisation has improved by 2.1% and 2.8% year-on-year and sequentially. The consolidated sales volume, on the other hand, has increased 6% annually to 27.32 million tonnes. This includes the sales of grey cement, cement export and clinker sales as well as white cement.

Reflecting on costs, the company’s presentation suggests that logistics cost, which is 29% of the total cost declined 2% annually at ₹1,221/Mt, energy cost (33% of overall) decreased 13% YoY to ₹1,477/Mt while the raw material costs (15% of overall) increased 3% YoY to ₹631/Mt in the December ended quarter.

“UltraTech will use 85% green power by 2030. Our company also targets to meet 100% of its electricity requirement through renewable sources by 2050, as part of its RE100 commitment,” the firm said in its presentation.

Following the Q3 results, UltraTech Cement shares traded 1.37% higher than the previous close at ₹10,027.90 on BSE at 2:15 pm.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow