I think one can get better prices offline ie post negotiations with the local dealer
I personally think, Ritesh Jain of Pine Tree Capital is quite accurate wrt his reading of current macros + trade war + geo-politics
My actions in the stock mkt are influenced by the broad macro thought - as outlined by Ritesh Jain in this interview 
So far, he has been right. Lets see, what transpires in the future
2 Likes
Physical is best. Please buy it from a trusted, branded dealer. Check for the BIS hallmark.
Pricing is better than ETF. As Ranvir said, ETFs have some tracking errors.
1 Like
Royal Orchid Hotels -
Q3 FY 25 results and Concall highlights -
Company’s Current portfolio -
5 Star rooms -
Owned - 268, JV - 139. Total - 407
4 Star rooms -
Owned - 130, Leased - 396, Managed - 2427. Total - 2953
Service Apartments -
Leased - 67, Managed - 71. Total - 138
Resorts / Heritage -
Leased - 142, JV - 54, Managed - 854. Total - 1050
3 Star -
Leased - 83, Managed - 1972. Total - 2055
Grand total -
Owned - 398, JV - 193, Leased - 688, Managed - 5324
Total no of Hotels @ 112 @ 75 locations
New Hotels added in last 9Ms @ 11, located across - Puri, Agra, Gurugram, Kasauli, Surat, Nepal, Jaipur, Gwalior, Raipur, Dalhousie, Dwarka
Total rooms added in last 9Ms @ 737
Upcoming hotels @ 28 with 2800 + rooms
Q3 financial outcomes -
Revenues - 95 vs 87 cr
EBITDA - 31 vs 30 cr
PAT - 18 vs 16 cr
9M FY 25 financial outcomes -
Revenues - 250 vs 230 cr
EBITDA - 71 vs 71 cr
PAT - 35 vs 34 cr
9M segmental revenues -
Room rent - 132 vs 124 cr
Food and Beverages - 93 vs 85 cr
Other services - 8 vs 9 cr
Managed Hotels - 24 vs 21 cr
Two of company’s exiting offerings likely to come up in next few months -
Regenta Resort - near Statue of Unity @ Kevadia, 49 rooms, likely to come up in Feb 25
ICONIQA - near T2 Mumbai airport, 292 rooms, likely to come up in Apr 25
Q3 ARR @ Rs 6320 vs 5700 YoY
9M FY 25 ARR @ Rs 5530 vs 5580 YoY
Ownership wise breakup of 9Ms revenues -
Owned - 87 vs 69 cr
Leased / Revenue share - 97 vs 90 cr
JVs - 49 vs 59 cr
Managed Hotels - 24 vs 21 cr
**The upcoming Hotel @ Mumbai is a leased property. It’s going to be a 5 star offering, positioned just below JW Marriot . Company expects this property to add 100 cr in topline on an annualised basis **
In FY 26 & 27, company is slated to start operations @ 10 leased properties. This should further add meaningfully to the topline
These 10 hotels combined are slated to add 1200 rooms under the leased / revenue share category
Revenues from the managed hotels should cross 50 cr in FY 26 ( in 9M FY 25, it was 24 cr ). PBT margins in the managed hotels comes to about 46-47 pc
ARRs of newly opened hotels ( in last 12 months ) is @ Rs 4180 vs corporate avg of Rs 5530. Similarly, newly opened hotels have an avg occupancy of 51 pc vs corporate avg of 70 pc. As these hotels ramp up, absolute EBITDA and margins should improve
Achieving 51 pc occupancy within 12 months of new hotel opening is in itself an achievement
Should commission 28 new rooms by Apr 25 in their Bangaluru resort
Additionally in their flagship hotel at Bengaluru, 25 rooms have already been renovated. Balance 25 rooms should also get renovated in Mar to May 25. Company is seeing healthy bump up in their ARRs post the renovation
Gross Debt @ 78 cr
Cash on books @ 60 cr. This would be utilised to add 40-45 rooms at their Goa hotel, initial operationalisation of the new Mumbai Hotel
Disc: used to hold previously. Planning to add. Biased, not SEBI registered, not a buy/sell recommendation
2 Likes
Bajaj Electricals -
Q3 FY 25 results and concall highlights -
Revenues - 1290 vs 1228 cr, up 5 pc
Gross profit - 402 vs 357 cr ( gross margins @ 31 vs 29 pc YoY ). Gross margin expansion led by price hikes taken during the Qtr
EBITDA - 87 vs 57 cr ( margins @ 7 vs 5 pc )
Other income - 13 vs 43 cr
PAT - 33 vs 37
Other expenses have increased by 11 cr due brand investments behind ’ built to shine’ campaign in the lighting business
Adjusted for one offs / other income - PBT would have have been 45 vs 37 cr, a growth of 21 pc
Cash on books @ 423 cr
Segmental revenues -
Consumer products - 1038 vs 957 cr, up 9 pc. Trade showing signs of recovery. Domestic home appliances business grew in strong double digits. Fans and Kitchen appliances business remained flattish
Lighting solutions - 251 vs 272 cr, down 8 pc. Trade witnessed double digit volume growth. However, steep price erosions continued. Professional lighting witnessed single digit de-growth
Consumer products business saw good festive demand. This division crossed 1000 cr in Qtly sales after a gap of 2 yrs
Morphy Richards brand witnessed a high double digit growth in Q3 ( this is their 4th straight qtr of double digit growth )
Continuously working towards improving their logistics and manufacturing efficiencies
Brand investments behind their lighting business are likely to remain elevated in the next few Qtrs as company tries to improve its mkt share
Corporate level advertising spends in Q3 were @ 3.3 pc. In CGs, ad spends were at 3 pc. In lighting, they were at 4.3 pc
Company believes that the price erosion in lighting business is not fully behind. Likely to continue for another 2-3 Qtrs ( specially in the professional lighting category, may be lesser in the consumer/retail lighting )
Company believes they need to fill portfolio gaps in their fans business. Will be doing the same in near future
Morphy Richards represents 8 pc of company’s total consumer products business
Company’s Gross Margins in Q3 ( @ 31 pc ) are the best in last 10 yrs. Company’s current structure is designed to clock 6000 cr of topline. As company gets there, there is further scope for Gross and EBITDA margin expansion ( by 2-3 pc ). Additionally, the company intends to bring down its manufacturing and logistics cost by 1 pc each
If there is a descent demand pick up going forward, company aims to reach a 7 -8 pc kind of EBITDA margin by FY 27 ( due better cost absorptions, operating leverage )
In consumer lighting, company’s share of revenues from ceiling lights was at low single digits till LY. They have made concerted efforts to improve the same and have brought this up to high teens in Q3. Ceiling lights have a much better margin profile vs LED bulbs, Batons
In Fans and Water Heaters, company’s share of revenues from premium products stands @ 22-24 pc. This is one area where they can steadily move up the premiumisation ladder
Company’s split of lighting business between consumer : professional lighting stands @ 40 : 60
Capex guidance for next FY @ 150 cr
Continued price erosion in LED Lighting is also happening ( over and above larger scale leading to lower prices ) due to technological changes like shift of Driver driven LEDs to Driver on Board technology ( DOB ) which has enabled further cost reduction by 10-15 pc
Disc: not holding, studying, not a buy/sell recommendation, not SEBI registered
1 Like
Hey Ranvir, Thanks for sharing the thoughts about changing world order and its relation with your stock holdings.
How are you seeing the impact of changing world order on CDMO companies?
Thanks
I used to be extremely bullish on CDMO companies. Did make good / great money in Piramal Pharma, Laurus Labs, Neuland Labs
However, with the kind of Macro environment that we r in ( or expected to be in ), one of the first casualty may be Biotech Funding. This is nothing but risk capital. In an adverse macro environment for the West, how long will it take for this risk funding to evaporate is anybody’s guess
Hence - I ve sold all my positions
This is just my opinion, guestimate ( please do ur own due diligence )
8 Likes
MOIL Ltd -
Q1 FY 25 results and concall highlights ( they haven’t conducted a concall post Q1 ) -
Revenues - 493 vs 380 cr
EBITDA - 214 vs 124 cr ( margins @ 43 vs 23 cr )
PAT - 152 vs 87 cr
Broad company details -
10 manganese mines in Madhya Pradesh and Maharashtra. Company reserves @ 46 million MT. Company resources @ 62 million MT
Ferro Manganese plant at Balaghat (12000 MTPA capacity)
Electrolytic Manganese Dioxide Plant at Dongri Buzurg Mine (1500 MTPA capacity) - only EMD plant in India
Wind mills - 20 MW, Solar plants - 10.5 MW
More than 56% energy consumption through renewable energy
Q1 Manganese production @ 0.47 million MT
Q1 Manganese sales @ .453 million MT, up 15 pc YoY
Q1 Ferro Manganese production @ 2948 MT
Q1 Electrolytic Manganese Dioxide ( EMD ) production @ 368 MT
In Q1, company carried out an exploratory drilling of 30028 mtrs, 1.5 X vs Q1 LY
India aims to be producing 300 million MT of steel by 2030. 11 million MT of Manganese will be required to achieve this target. MOIL intends to be supplying 3.5 million Mts out of this total requirement of 11 million MT
Out of company’s 10 mines, 3 are open cast and 7 are underground mines
Manganese demand and prices are directly linked to country’s steel production as most of the Manganese is used in Steel production
India contributes to 5 pc of global Manganese supply. MOIL contributes to 52 pc of India’s Manganese production
For FY 25, company’s production target is 2 million MTs
For FY 25, company’s production target is 2 million MTs
**The sharp bump up in Q1 profitability is due to sharp upswing in Manganese prices due to some supply disruptions from South America ( mines not being available for a few days ) **
Capex lined up for FY 25, 26 @ 300-350 cr each. Should add 5 shafts in different mines in FY 25
As the company keeps ramping up its production output by 12-14 pc CAGR for next 4-5 yrs, the cost of production at the corporate level should fall by 5-7 pc / yr ( as a lot of fixed costs won’t go up in the same proportion ) - an important factor likely to drive future margins / over and above the global Manganese prices
Disc: not holding, studying, not a buy/sell recommendation, not SEBI registered
Ok. Have revaluated over last 1 week. Even japan did not get a deal. A few journos from USA saying that japanese went with clear mindset of getting deal done but USA team neither has the power to make one nor do they have precise terms to offer.
Started reducing export positions though not completely out yet. Lets see what Vance does in India.
1 Like
Devyani International -
Q3 FY 25 results and concall highlights -
Added 250 new stores in 9M FY25. Out of these, 17 KFC stores were added in Thailand. First food court under PVR JV opened at Kota
Total stores count @ 2032 now ( includes 305 KFC stores in Thailand )
Breakdown of brand wise stores -
India -
KFC - 689
Pizza Hut - 644
Costa Coffee - 209
Vaango - 94
Others - 22
Nigeria -
KFC - 40
Nepal -
KFC + Pizza Hut - 29
Thailand -
KFC - 305
India breakdown of stores between Metro : Non Metro @ 721 : 821 ( 47 : 53 )
9M FY 25 financial outcomes -
Revenues - 3778 vs 2509 cr
Gross margins @ 69.1 vs 70.8 pc
EBITDA - 641 vs 478 cr
Q3 FY 25 financial outcomes -
Revenues- 1295 vs 847 cr
Gross margins @ 68.7 vs 70.6 pc
EBITDA- 219 vs 146 cr ( margins @ 16.9 vs 17.4 pc )
Fin Costs - 67 vs 48 cr
Depreciation - 146 vs 93 cr
PAT - (-) 8 vs 5 cr
9M KFC India business performance -
Added 122 stores
Revenues - 1667 vs 1549 cr
Avg Daily sales - 98k vs 110k
SSG - (-) 6.4 pc
Gross margins - 69 vs 69.4 pc
Margins - 17.8 vs 19.8 pc
9M Pizza Hut India business performance -
Added 104 new stores
Revenues - 556 vs 547 cr
ADS - 35k vs 38k
SSG - (-) 5.2 pc
Gross margins - 76.5 vs 75.5 pc
EBITDA margins - 3.4 vs 8 pc
9M Costa Coffee India business performance -
Added 25 new stores
Revenues - 146 vs 106 cr
Avg daily sales - 27k vs 33k
SSG - 3.9 pc
Gross margins - 75.2 vs 76.9 pc
EBITDA margins - 15.5 vs 16.6 pc
9M Vango India business performance -
Added 23 new stores
Revenues - 56 vs 44 cr
ADS - 27k vs 31k
SSG - 8.1
Gross margins - 79.6 vs 79.4 pc
EBITDA margins - 20.4 vs 23.2 pc
9M International business performance -
Stores @ 374 vs 65 ( due KFC Thailand’s acquisition )
Revenues - 1214 vs 148 cr
On 24 Apr 25, company is expected to issue fresh equity for the purpose of acquisition of Sky Gate Hospitality ( owned of the brand - ’ Biryani by Kilos’, running > 100 stores across 40 cities ). Acquisition is likely to value SkyGate @ around 900 cr
Did see some demand recovery in Tier - 1 cities in Q3. Hopeful that the recovery will accelerate in Q4
India business growth in Q3 was at 9 pc - led by store expansion
Company has a stake of 51 pc in the JV with PVR for the foodcourts business
Seeing demand and currency stabilisation in the Nigerian mkt
In 9Ms, company added - 93 KFC & 77 Pizza Huts ( besides other brands ). Going forward, will be moderating Pizza Hut expansion. Will only add, once the brand performance shows a meaningful uptick
Hopeful of a margin recovery in Pizza Hut in Q4 on the back of lower marketing costs + cost optimisation measures that the company has taken. KFC’s margins should also improve due to the a/m cost optimisation measures
Aim to take KFC to 19-20 pc kind of brand contribution margins ( @ ADS levels of 1 lakh ). Should be able to reach there in a few Qtrs. Have taken cost optimisation measures which should help in margin expansion
For Thailand business, going to add around 25 KFC stores in FY 26 + aiming @ a 3 pc kind of SSG. This should result in a 9 pc kind of growth in the Thailand’s business
Because of currency stabilisation in Nigeria, brand contribution margins in Q3 were very healthy @ 20 pc vs losses previously ( due currency devaluations )
Lower ADS in 9Ms vs LY in KFC, Pizza Hut is also because of strong store additions in both these brands. New stores obviously take some time to ramp up their avg daily sales
Kerala, WB not doing well. Seeing much better performance from other states. Even in these states, worst should be behind is what the company believes
Company generally pursues aggressive expansion during down turns ( as u get better RE deals ). It has generally helped them ( like in Covid, when the expanded aggressively )
The current expansion spree is focused on relatively smaller sized stores than previously ( as the pay back periods on smaller stores are lesser )
As the tide turns ( ie the slowdown abates ), company is hopeful of reaping good dividends from their deliberate expansion spree
DIL also announced that it has secured Exclusive Master Franchise rights for three modern QSR brands: TeaLive, New York Fries and SANOOK KITCHEN. Should start the roll out wef Q4
Disc: hold a tracking position, not SEBI registered, not a buy/sell recommendation, posted for educational purposes
5 Likes
Post Deleted
It was a repeat post ( by mistake )
Post Deleted
It was a repeat post ( posted by mistake )
Maruti Suzuki -
Q4 FY 25 results and Concall highlights -
Q4 outcomes -
Revenues - 38848 vs 36697 cr, up 3.5 pc
EBITDA - 3392 vs 3956 cr, down 14 pc ( margins @ 8.7 vs 10.8 pc )
PAT - 3711 vs 3878 cr, down 5 pc
Margin contraction due - new plant related expenses ( @ Kharkhoda, Greenfield ), higher sales and advertisement costs, higher manufacturing overheads and administrative expenses
Sales volume @ 6.04 vs 5.84 lakh vehicles, up 3.5 pc
FY 25 outcomes -
Revenues - 145115 vs 134937 cr, up 7.5 pc
EBITDA - 14625 vs 13378 cr, up 9 pc, margins @ 10.1 vs 9.9 pc
PAT - 13955 vs 13209 cr, up 5.6 pc
Sales volume @ 22.34 vs 21.35 lakh vehicles, up 4.6 pc
Domestic sales @ 19.01 lakh ( grew by 2.7 pc ), Export sales @ 3.32 lakh vehicles ( grew by 17.5 pc )
Segment wise sales growth for FY 25 vs FY 24 -
Mini - (-) 11.5 pc
Compact - (-) 6.9 pc ( company’s second largest segment )
Mid Size - (-) 18.7 pc
UVs - 12.1 pc ( company’s biggest segment )
Vans - (-) 1.1 pc
LCVs - 2.2 pc
Sales to Toyota - 81.6 pc
Domestic Industry’s ( PV ) growth in FY 25 @ 2.4 pc. PV Industry’s growth in FY 24 was @ 8.2 pc
SUVs + MUVs are the only industry segments that are witnessing healthy growth
These 2 segments now contribute to 65 pc of the mkt. Hatchback segment’s share now stands @ 24 pc of the total mkt vs 46 pc in FY 19
**Industry’s CNG + DIESEL sales contributed to aprox 18 pc each. Hybrid + EV sales were @ aprox 2.5 pc each **
Maruti Suzuki continues to largest exporter of PVs from India. Aim to grow exports @ 20 for FY 26 as well. Company’s share in India’s exports @ 48 pc now
Will be launching 2 products this year - E - Vitara and another new SUV
New Swift and Dzire launched in FY 25 seeing good customer response
Company’s solar power capacities expanded to 78 MW vs 43 MW in FY 24
Q4 sales were 6.8 pc higher than Q3 sales. Q4 turned out to be the highest selling Qtr in company’s history ( both volumes and sales )
In Q4, company’s retail sales were > wholesales ( a healthy sign )
Rural mkt continued to do well - both in Q4 and FY 25
In Q4 - Kahrkoda plant has a production capacity of 2.5 lakh vehicles / yr. Its construction was completed in Mar. The hit on the margin because of this was about 0.30 pc ( due depreciation etc )
In Q4, higer advertisement costs, adverse sales mix and higher RM costs hit the margins by about 0.3, 0.3 and 0.2 pc each. Other expenses ( like overheads + R&D ) hit the margins by about 0.9 pc. Better operating leverage and lower sales expenses helped save offset these by around 0.4 pc and 0.4 pc each
Declared a dividend of Rs 135 / share
Talks for FTAs with UK, EU and US are ongoing. Can’t be sure of which one will materialise and its impact on the Auto Industry
Till the time domestic mkt remains sluggish, company is likely to keep pushing exports to maintain volume growth and to keep extracting operating leverage
Company expects to grow in low to mid single digits in the domestic mkt for FY 26
SUV share of sales for Maruti Suzuki in Q4 was down from 39 to 36 pc QoQ. That did have a 40 bps adverse impact on the margins. The compact + Mini segment did relatively better in Q4 ( for a change )
Company has taken 2 price hikes in Q4 FY 25 + Q1 FY 26. This is being done to offset the RM price hike
E Vitara is expected to be launched within H1 FY 26. Hope to do a volume of 70k of this product in FY 26, bulk of it from exports
Capex expectation for FY 26 @ 8k-9k cr
Cash on books > 65k cr
The pay commission that’s expected in Q4 FY 26 or H1 FY 27 should cost the demand for the sector
Royalty paid @ 3.5 pc of sales
Company has closed FY 25 with a lean stock of 28 days - a healthy indicator
To begin with, EV profitability is likely to be far lower vs ICE vehicles
Disc : holding, biased, not a buy / sell recommendation, not SEBI registered
2 Likes
RPG Lifesciences -
Q4 FY 25 results and concall highlights -
Q4 outcomes -
Revenues - 143 vs 127 cr, up 13 pc
EBITDA - 30 vs 23 cr, up 36 pc ( margins @ 21.4 vs 17.6 pc )
PAT ( adjusted for one off gains ) - 18.5 vs 13.2 cr, up 40 pc YoY
FY 25 outcomes -
Revenues - 653 vs 582 cr, up 12 pc
EBITDA - 172 vs 135 cr, up 27 pc ( margins @ 26.4 vs 23.3 pc )
PAT ( adjusted for one off gains ) - 112 vs 88 cr, up 27 pc
EBITDA margins have seen continuous expansion for past 6 years
Company is debt free
FY 25 segmental performance -
Domestic formulations - 425 vs 386 cr, up 10 pc
International formulations - 132 vs 106 cr, up 24 pc
APIs - 90 vs 85 cr, up 6 pc
Company’s manufacturing footprint -
F1 unit @ Ankleshwar caters to domestic and emerging markets, has approvals from WHO, various African countries
F2 unit @ Ankleshwar caters to regulated markets, has approvals from EU GMP, WHO, various African countries
API unit @ Navi Mumbai, has approvals from PMDA ( Japan ), WHO, TGA ( Australia )
Popular brands from company’s stable include -
Naprosyn - Painkiller
Azoran - Immunosupressant
Lomotil - used to treat diarrhoea
Immunotac - Immunosuppressant
Arpimune - Immunosupressant
Mofetyl - Immunosupressant
NuGliptin - Cardiovascular
SacuNew - Cardiovascular
HerMab - Trastuzumab - Onco Drug
AdluMab - Adalimumab - Onco Drug
IvzuMab - Bevacizumab - Onco Drug
In FY 27, new API and International formulations plant will be operational with new product launches. That should lead of accelerated growth in these business segments
Cash on books now @ 266 cr ( post receipt of proceeds from sale of surplus land holdings )
Naprosyn and its variants clocked sales of 76 cr, Immunosuppressants clocked sales of 79 cr for full FY 25
Company’s newer businesses like - Nephrology, Cardiology, Monoclonal anti bodies and Oncology are growing in healthy double digits
Cardiology now contributes to 20 pc of company’s sales
Receivables in Q4 are slightly elevated due higher sales in the international business
As Monoclonal Anti Bodies, Cardio portfolio grow bigger, margins should improve gradually. However, the possibility of some of company’s brands coming under DPCO may exert negative pressure on margins
MR productivity @ 6.3 lakh. MR productivity in speciality divisions is > 13 lakh / MR
Domestic formulations growth for FY 25 by volume @ 7.3 pc, by price @ 2.3 pc, by new product introductions @ 1.1 pc
Price hikes this year are likely to be higher in FY 26 vs 25. Aprox 30 pc of company’s business is under DPCO. The price hikes allowed in the DPCO part of the business in FY 25 was < 1 pc. Also, company faced some pricing pressures in the non DPCO business
Even the new launches in FY 26 should be far higher vs FY 25
The Industry’s volume growth in FY 25 was 1.1 pc vs 7.3 pc for the company ( no mean feat - imo )
If the company is able to maintain its volume growth, bigger price hikes + newer product introductions next year may propel company’s topline growth into mid teens
Company has invested a lot of money in upgrading and modernising its API plant. There are 12 molecules in the company’s R&D pipeline. Company hopes its API business should start to see improved growth rates wef FY 27
Company is also planning to add multiple new formulations to its international formulations business by early FY 27. This should help them keep the international growth momentum intact
API segment’s growth in H1 was in double digits. Then there was an unfortunate fire incident in one of their three API manufacturing blocks. This led to a slower full yr growth in their API business. This should start to reverse wef H2 FY 26
Company lost sales to the tune of 8-10 cr in Q4 due to the a/m fire incident
Disc: holding, biased, inclined to add more, not SEBI registered, not a buy/sell recommendation
3 Likes
Nippon Life AMC -
Q4 FY 25 results and concall highlights -
Industry AUMs on 31 Mar @ 67 vs 54 lakh cr. Out of these - Equity AUMs @ 41 lakh cr, ETFs @ 8 lakh cr. Rest are liquid and debt funds
Segment wise breakup of AUMs ( for the Industry ) -
Corporates - 40 pc
HNIs - 34 pc
Retail - 27 pc
Geographical spread of AUMs ( for the Industry ) -
Top 30 cities - 82 pc
Beyond Top 30 cities - 18 pc
Monthly SIPs @ 25.9k in Mar 25 vs 19k cr in Mar 24
Nippon Life AMC continues to be 4th largest AMC and the largest non Bank backed AMC in the country
Nippon’s AUM @ 5.5 lakh cr, mkt share @ 8.26 pc. Company’s equity mkt share @ 6.86 pc. Company’s ETF AUMs @ 1.5 lakh cr, ETF mkt share @ 19.1 pc
Breakup of company’s AUMs of 5.5 lakh cr -
Equity - 50 pc
Debt - 15 pc
Liquid - 8 pc
ETFs - 27 pc
Breakup of company’s investors profile -
Retail - 29 pc
HNIs - 30 pc
Corporates - 41 pc
Breakup of company’s geographical profile of AUM -
T-30 - 80 pc ( @ 4.4 lakh cr )
B-30 - 20 pc ( @ 1.1 lakh cr )
No of SIPs with age > 5 yrs @ 54 pc of the company vs 30 pc for the Industry
Q4 FY 25 financial outcomes -
Revenues - 566 vs 468 cr, up 21 pc
Core Operating profits - 354 vs 281 cr, up 26 pc
Other income - 23 vs 92 cr
PAT - 298 vs 342 cr, down 13 pc due lower other income
Company is holding the following investments on its books -
Debt MFs - 2435 cr
Equity MFs - 510 cr
Bank FDs - 366 cr
Other assets ( like AIFs etc ) - 389 cr
Company’s SIP mkt share (@ 10.25 pc ) is better than their overall equity mkt share
Final Dividend @ Rs 10/share. Total annual dividend @ Rs 18/share
FY 25 financial outcomes -
Revenues - 2231 vs 1643 cr, up 36 pc
Core operating profit - 1404 vs 958 cr, up 47 pc
Other income - 290 vs 394 cr, down 26 pc
PAT - 1286 vs 1107 cr, up 16 pc
Nippon Life AMC was the fastest growing AMC among the top 10 AMCs in India in FY 25
**Company has an investor base of 20.8 million unique investors - highest in the Industry **
Japan has revamped their NISA scheme allowing retail investors in Japan to invest in India. Company is at the forefront and is confident to driving greater Japanese retail flows into the Indian mkts
ESOP costs for next FY should be around 50 cr in FY 26
Segmental yields -
Equity @ 57 bps, Debt @ 25 bps, Liquid @ 12 bps, ETFs @ 15bps. Corporate avg yield stands @ 37 bps
Tax rate for FY 26 should be 25 pc
Aprox 3-4 yrs back, the share of corporates in company’s AUM was around 50 pc vs 41 now. Company has a razor sharp focus on the retail and HNI category - hence this shift. Corporates generally invest in the liquid + debt funds. Aprox 90 pc of Equity AUMs come from Retail + HNI segments
Added 160 employees in FY 25. May add another 80-100 employees in FY 26. Total employee strength now stands @ 1170
Company has been going slow vs Industry on NFOs specially in the thematic funds category. It’s a deliberate strategy. Company believes, launching too many NFOs don’t really help in long term. In long term, the track record of old schemes is far more important than launching new funds
Despite not launching NFOs, company is still the mkt leader in adding new / unique investors
For FY 26, company expects total cost increases to be in the range of 15 pc on FY 25’s base
As RBI starts to cut rates, the attraction towards MFs should only increase as the bank FD rates fall
Company expects its corporate level yields ( Equity + Debt + Liquid + ETFs ) to fall by 2-3 bps in FY 26
Top 5 of company’s equity funds contribute to 80 pc of their equity AUM
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
4 Likes
Federal Bank -
Q4 and FY 25 results and concall highlights -
Q4 financial outcomes -
Deposits @ 2.3 vs 2.07 lakh cr, up 11 pc YoY
Advances @ 2.42 vs 2.14 lakh cr, up 13 pc YoY
Gross NPAs @ 1.84 vs 2.13 pc
Net NPAs @ 0.44 vs 0.60 pc
PCR @ 75.4 vs 71.1 pc ( sharp improvement )
Slippages @ 0.82 vs 0.68 pc ( retail slippages @ 1.32 pc, corporate slippages @ 0.17 pc )
Slippages in Q4 @ 483 cr. Slippages in previous 3 Qtrs @ 486 cr, 428 cr, 417 cr
NII @ 2377 vs 2195 cr, up 8 pc
Fee + Other income @ 1006 vs 754 cr, up 30 pc
Operating profit @ 1465 vs 1110 cr, up 32 pc
Provisions @ 435 vs 204 cr
PAT @ 1030 vs 806 cr, up 14 pc
Cost/Income ratio @ 56.7 vs 62.3 pc ( sharp improvement )
Segmental advances growth -
Retail - 10 pc
Gold - 21 pc
BuB - 11 pc ( business banking )
Agri - 9 pc
CV/CE - 35 pc
MFI - 19 pc
COB - 27 pc ( commercial banking )
CIB - 8 pc ( corporate banking )
Segmental deposits growth -
CASA - 16 pc
NRE deposits - 10 pc
CASA ratio @ 30 pc
Yeild on advances @ 9.31 vs 9.48 pc
Breakdown of advances -
Retail - 29 pc
Gold - 13 pc
BuB - 8 pc
Agri - 3 pc
CV/CE - 2 pc
MFI - 2 pc
CoB - 11 pc
CIB - 32 pc
High yielding segments like - MFIs, CC, PLs constitute 4 pc of bank’s book
Medium yielding segments like - Gold loans, CoB, Auto loans, Agri, LAP, BuB, CV/CE constitute 50 pc of bank’s book
Low yielding segments like - housing loans, CIB constitute 42 pc of bank’s book
Total branches @ 1589, opened 85 branches in FY 25. Total number of customers @ 1.9 cr
Bank’s credit card mkt share @ 1.5 pc
Credit cost for FY 25 stood @ 38 bps due increased recoveries ( within their guided range of 35 to 40 bps )
After the recent rate cut by RBI, competition has started reducing the deposit rates. This should help the Bank lower their deposit rates and improve their spreads going forward
Bank continues to focus on the medium yielding segments to maintain NIMs
Don’t want to press the pedal on MFI business as yet. The environment for CC/PLs is improving and the bank is likely to accelerate lending there ( with caution ). Also focussing on CV/CE + used CV and used PVs segments to improve NIMs
Bank remains open to inorganic growth. There is nothing on the plate as yet
Have started cutting savings and term deposits rate wef mid April
Aim to keep growing their Advances @ 1.2 to 1.5 times the country’s nominal GDP growth rate
As the rate cut cycle plays out, short term challenges on the NIMs are likely to persist
Bank is ramping up its relationships with mid sized corporates. This is helping them grow their current account deposits at a rapid pace
Not yet sure of bottoming of cycle in the MFI segment. Seeing lesser stress in the PL/CC business
Continue to command a very healthy mkt share @ 19 pc when it comes to the remittances / NRI business
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
4 Likes
Kamat Hotels -
Q4 and year end FY 25 results and concall highlights -
Q4 outcomes -
Revenues - 92 vs 84 cr, up 9.5 pc
EBITDA - 25 vs 23 cr, up 6.5 pc ( margins @ 27 vs 28 pc )
PAT - 11 vs 2 cr, up 423 pc ( due lower finance costs, down @ 5 vs 15 cr YoY )
FY 25 outcomes -
Revenues - 362 vs 304 cr, up 19 pc
EBITDA - 104 vs 91 cr , up 14 pc ( margins @ 29 vs 30 pc )
Finance costs - 30 vs 60 cr
PAT - 47 vs 45 cr, up 4 pc ( LY, there was an exceptional gain of 29 cr )
Upcoming properties -
Orchid Hotels -
Rishikesh - Jul 25
Dehradun - Dec 25
Gwalior - Dec 25
Puri - Dec 26
Mandvi ( Kutch ) - Dec 27
Ira by Orchid -
Hyderabad - Jul 25
Bhavnagar - Oct 25
Currently operational hotels -
Orchid Hotels - Mumbai, Lonavala, Pune, Shimla, Manali, Jamnagar, Chandigarh
Ira by Orchid - Mumbai, Bhuvneshwar, Nashik, Shambaji Nagar, Ayodhya, Noida, Toyam
Lotus Beach resorts - Konark, Goa, Murund
Heritage hotels - Fort Jadhavgarh, Madhodadhi Palace
Total - 19 hotels
Orchid - Chandigarh started operations in last week of April 25
Avg Occupany in Q4 was at 65 pc
Debt on books now @ 105 cr
Orchid Pune ( owned property ) is currently under renovation. Once it restarts operations, it ll help them improve revenues and EBITDA
As newer hotels go on stream ( mostly on leased / revenue share model, only a few are going to be managed properties ) - the EBITDA margins are likely to gradually come down ( due payment of rentals / lease amounts vs no such payments in case of owned / managed hotels )
Guiding for 400 cr in topline in FY 26 ( conservative guidance )
Q4 is always weaker vs Q3. Revenue buoyancy wise, best to worst Qtrs in decreasing order ( in general, for Kamat Hotels ) are - Q4 > Q3 > Q1 > Q2
Aprox 32 pc of company’s business comes from repeat business ( pointing towards descent customer satisfaction / loyalty )
The Orchid Pune will have 2 large banquet halls. Plus the renovated hotel is likely to have additional rooms. These 2 factors should be margin accretive for FY 26
Cash in hand @ 25 cr. Therefore, the net Debt is only @ 80 cr. Even on the gross debt of 105 cr, the RoI is 10.5 pc which is likely to further come down in FY 26. By end of FY 26, the Gross debt is likely to reduce to around 75 cr ( reduction @ 7-8 cr / Qtr ) - should bring down the interest costs meaningfully for FY 26
ARR in Q4 vs Q3 FY 25 @ Rs 6.5k vs Rs 6.4k. Occupancy in Q4 vs Q3 FY 25 @ 65 pc vs 65 pc . Despite this, the total revenues have fallen from 110 to 92 cr. This is because of a steep fall in income derived from events, F&B, Banqueting etc which generally boom in Q3 due peak tourism, marriage season
The no of rooms / Hotels that the company is going to add in FY 26 are significant. However, these new rooms / hotels should take some time to ramp up
The total capex for renovation at Pune hotel should be around 40 cr ( everything to be funded from internal accruals )
Management believes their Chandigarh hotel should do a 20-22 cr topline in current FY. Should stabilise @ 30 cr/yr, once the hotel stabilises
The renovation of their Goa property is complete. They did spend 14 cr towards the same
Ayodhya, Jamnagar, Shambhaji Nagar, Noida hotels ( opened recently ) are doing well. Specially the Ayodhya hotel - which did exceedingly well in Q4. Jamnagar hotel started slowly but is now doing well. However, ARRs in Jamnagar are lower
The management reiterated that their topline guidance of 400 cr for FY 26 is a conservative estimate
Company expects Rishikesh and Hyderabad property to do a topline of aprox Rs 10 and 7 cr in current FY
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
2 Likes
AJANTA PHARMA -
Q4 and FY 25 results and concall highlights -
Q4 outcomes -
Revenues - 1170 vs 1054 cr, up 11 pc
Gross margins @ 76 vs 75 pc
EBITDA - 297 vs 278 cr, up 7 pc (margins @ 25 vs 26 pc)
PAT - 225 vs 203 cr, up 11 pc
FY 25 outcomes -
Revenues - 4648 vs 4209 cr, up 10 pc
Gross margins @ 77 vs 75 pc
EBITDA - 1260 vs 1172 cr, up 7 pc ( margins @ 27 vs 28 pc ) Lower EBITDA growth is due to accelerated increase in personal costs @ 21 pc due change in Gratuity policy. This should get normalised in next FY
PAT - 920 vs 816 cr, up 13 pc
Q4 segmental performance -
India branded formulations - 369 vs 326 cr, up 13 pc
Asia branded formulations - 303 vs 281 cr, up 8 pc
Africa branded formulations - 133 vs 113 cr, up 17 pc
US generics - 325 vs 261 cr, up 25 pc
Africa generics - 28 vs 61 cr, down 53 pc
FY 25 segmental performance -
India branded formulations - 1452 vs 1308 cr, up 11 pc
Asia branded formulations - 1191 vs 1057 cr, up 13 pc
Africa branded formulations - 750 vs 585 cr, up 28 pc
US generics - 1047 vs 964 cr, up 9 pc
Africa generics - 147 vs 249 cr, down 41 pc
Full yr R&D expenses @ 224 vs 208 cr
US generics business has witnesses 13 pc CAGR growth in last 4 yrs. Company has a total of 47 products on the shelf ( including 5 products launched in FY 25 ). Filed 6 products in FY 25. Aim to file another 8-12 products in FY 26
Asia and Africa branded businesses have grown @ 14 pc and 16 pc CAGR respectively in last 4 yrs. Company launched a total of 38 new products in Asia + African mkts in FY 25. Key mkts include - Africa, SE Asia, ME, East and Central Asia
India branded business has grown @ 12 pc CAGR in last 4 yrs. Company’s main therapies in India include - Cardiac, Ophtal, Derma and Pain management
FY 25 India growth @ 10.6 pc. Breakup of growth - Volume @ 2.5 pc, Price @ 5 pc, New Products @ 3.1 pc
14 of company’s brands in India now clock an annual sales of > 25 cr. 65 pc of company’s India sales come from Chronic therapies. 11 pc of company’s India sales are under NLEM. Company’s MR strength stands @ 3450
Some of company’s popular brands include -
Aquasoft ( moisturising cream and lotion )
Feburic ( to treat Gout )
Apdrops ( Ophthalmic antibiotic )
Met XL ( anti Hypertensive )
Soft Drops ( used to treat dry eyes )
Company has ventured into Gynaecology and Nephrology in the Indian mkt in FY 25. Have hired 200 MRs for the same. Added another 250 MRs in the 4 traditional therapies. Company acquired 3 brands in the pain management segment in Q4
Out of a total sales of 1452 cr from the India business in FY 25, Rs 170 cr sales came from trade generics segment
Breakup of India sales -
Cardio - 38 pc
Opthal - 29 pc
Derma - 23 pc
Pain management - 10 pc
Company expects EBITDA margins to expand to around 28 pc levels in FY 26 vs 27 pc in FY 25
Capex @ 318 cr in FY 25. Expect Capex for FY 26 @ 300 cr
Have added 450 MRs in FY 25. This should offset some of the gains in margins that would have otherwise accrued to the company in current next next FY due increased percentage of sales from Branded formulations
Expect the US business to grow in mid to high teens and the branded formulations business to grow in low teens in FY 26
Expecting R&D spends to continue to be around 5 pc of sales for next FY as well. Half of R&D expenses are directed towards US business
Company launched 4 new products in US mkt in H2 FY 25 and is planning to launch 7 new products in FY 26. These two factors combined give them the confidence of being able to grow @ mid to high teens in US in next FY
In India, company aspires to keep growing @ 2-3 pc higher than IPM growth rates. It should take 3-4 yrs for the company to make a meaningful mark in the new therapies that they have recently entered in India mkt ie Gynae and Nephro
The pain management brands that the company has acquired in Q4 have an annual revenues of 17 cr. Aim to grow them @ fast pace
Company believes, there r only 3 ways to spend their accumulated profits ie Capex, Dividends and Acquisitions. As long as they r not making any significant acquisitions, the dividend payments r likely to be liberal
Company believes that company should be able to keep growing in low to mid teens in the African and Asian mkts for foreseeable future - on the back of new products and deeper mkt penetration
At present, the tariffs on China vs India on Pharma product sales to US are @ 20 pc vs NIL. However, India is already far ahead of China in US mkt wrt formulations
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
1 Like
Cholamandalam Investment and Finance company -
Q4 and FY25 results and Concall highlights -
Q4 outcomes -
Q4 disbursements @ 26,417 cr, up 7 pc YoY
AUM @ 1.84 lakh cr, up 27 pc
NIMs @ 8 vs 7.8 pc
PBT - 1706 cr, up 19 pc
RoE - 22.2 vs 22.3 pc
Stage 3 assets @ 2.81 pc vs 2.48 pc
GNPAs @ 3.97 vs 3.54
NNPAs @ 2.63 vs 2.32
FY 25 outcomes -
Disbursements @ 1.01 lakh cr, up 14 pc
AUM @ 1.84 lakh cr, up 27 pc
NIMs @ 7.7 vs 7.5 pc
PBT - 5737 cr, up 25 pc
RoE - 19.8 vs 20.6 pc
Segmental performance -
Vehicle Finance -
Operating from 1564 branches across India. Focussed on CV, 2W, PV, Tractor and Construction equipment loans ( both old and new vehicles ). Focus continues to be on rural areas, smaller towns
Full yr Disbursement @ 53,922 cr, up 12 pc
Full yr PBT of 2824 cr, up 12 pc
LAP -
Giving out LAP to SME customers for their business needs. Operating out of 780 branches ( 771 branches co-located with vehicle finance ). 77 pc of loans are against self occupied residential properties
Full yr Disbursements @ 17,913 cr, up 32 pc
PBT of 1266 cr, up 30 pc
Home Loans -
Giving out home loans via 710 branches ( 667 branches co-located with vehicle finance ). Operating in the affordable home loans category
Full yr disbursements of 7404 cr, up 16 pc
PBT of 709 cr, up 45 pc
SME -
Loans to SME for supply chain financing, capex etc. Loans are extended against plant and machinery. Operating out of 95 co-located branches
Full yr disbursements @ 7763 cr, down 6 pc
PBT of 110 cr, up 36 pc
CSEL ( consumer and small enterprise loans ) -
Providing personal loans, professional loans, business loans to salaried, self employed and small businesses through 495 branches ( 494 co-located ). In this segment, company does tie up with fintech’s, partners like Samsung Finance ( for Samsung products ), D2C via Chola One app etc
Full yr Disbursements @ 12,552 cr, up 11 pc
PBT of 343 cr, up 39 pc
SBPL ( secured business and personal loans ) -
Provide Secure business and personal loans against self occupied residential properties through 414 co-located branches
Full yr disbursements @ 1316 cr, up 23 pc
PBT of 142 cr, up 312 pc
Total employees @ 64941
Total branches @ 1613
Total customers @ 43.72 lakh
Stage wise classification of assets -
Stage - 1 - 1.75 lakh cr
Stage - 2 - 4.7 k cr
Stage - 3 - 5.2 k cr
Provisions held by the company - 3.4 k cr
Segment wise Gross Stage 3 assets -
VF - 3.6 k cr, @ 3.52 pc of total assets
LAP - 795 cr, @ 2.02 pc of total assets
HL - 242 cr, @ 1.32 pc of total assets
CSEL - 306 cr, @ 2.06 pc of total assets
SME - 158 cr, @ 2.36 pc of total assets
SBPL - 63 cr, @ 2.59 pc of total assets
At corporate level-
Gross stage 3 assets @ 2.81 vs 2.48 pc
Provision coverage @ 45.27 vs 46.45 pc
Net Stage 3 assets @ 1.54 vs 1.33 pc
Revival of infra spending should lead to stronger growth in the vehicle finance segment in FY 26. Tractor segment did well in FY 25 as well
The used vehicles industry is growing at a faster pace with increase in organised players and financing options
Breakdown of company’s loan book -
VF - 55 pc
LAP - 22 pc
HL - 10 pc
CSEL - 8 pc
SME - 4 pc
SBPL - 1 pc
Breakdown of company’s VF book -
LCV - 21 pc
MUV - 12 pc
HCV - 7 pc
CE - 6 pc
Cars - 13 pc
Tractors - 6 pc
3 Wheelers - 1 pc
2 Wheelers - 7 pc
Used Vehicles - 28 pc
Segment wise losses and provisions -
VF - 1.6 pc
LAP - 0.2 pc
HL - 0.4 pc
SBPL - 1.4 pc
SME - 1.0 pc
CSEL - 5.8 pc
Corporate level losses and provisions @ 1.4 pc
Company intends to enter Gold loans business in select geographies
AUM growth guidance for FY 26 @ 20-25 pc
Expect to grow the Home Loans AUM @ 30 pc for next 2 yrs
Credit cost for CSEL,SME should progressively come down in FY 26
Aiming to grow the VF business @ 20 pc and other businesses @ 30 pc for next FY
As RBI keeps cutting rates, the lower cost of borrowing benefits should start to flow for the company. Expect NIMs to improve by 10-15 bps for FY 26 ( after adjusting for revisions on interest rates in their floating rate book )
Company is going slow on their CSEL book which they had built with some of their fin tech partners ( due increased slippages ). As this book starts to run down, credit cost should improve ( wef Q3 next yr )
Wrt VF, if the monsoons are good, company is hopeful of a falling credit cost. If this pans out as expected, should lower the corporate level credit costs in a meaningful way
Starting the Gold Loan business from 120 branches ( in South + East India ). Initially going slow. Once it stabilises and the company is confident ( say in 1 - 1.5 yrs ), they ll roll out this product PAN India
Except for the external fin-tech partnerships ( where the company has stopped lending and is waiting for the book to run down ), company’s internal app based ( Chola One ) business is growing at a good pace with great return ratios and manageable credit costs
Out of CSEL’s total loan book, external fin-tech based book is 8 pc of CSEL’s total loan book
The 120 gold loan branches are completely new branches ( not operating from pre-existing branches )
In SME lending, Supply chain finance is a competitive area with lower margins. Company intends to go slow here. Instead, they would focus on term loans and equipment financing which offer better yield and longer tenures
LAP and HL are high growth, low credit cost business for the company. Aim to keep growing these businesses at a brisk pace
The new regulations in TN wrt recovery of loans are applicable only to MFI and private lenders. Chola, bigger NBFCs and Banks aren’t affected. Similar legislations already exist in Karnataka, Telangana
For next 3-4 yrs, company intends to keep focussing on Gold loans + SBPL + CSEL + SME businesses. Till these 4 businesses are scaled up adequately, don’t intend to enter any new business segment
Company is able to do brisk business in tier -3,4 cities wrt PV finance and Maruti Suzuki as OEM
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
5 Likes
Kotak Bank -
Q4 and FY 25 results and concall highlights -
Bank’s standalone Q4 outcomes -
NII - 7284 vs 7196 cr, up 5 pc
Other Income ( fee, service, trading, MTM ) - 3182 vs 2979 cr, up 7 pc
Net Total income - 10466 vs 9888 cr, up 6 pc
Operating expenses - 4994 vs 4206 cr, up 13 pc
Op Profit - 5472 vs 5462 cr ( flat YoY )
Provisions - 909 vs 264 cr, up 84 pc
PAT - 3552 vs 4133 cr, down 14 pc ( In Q4 LY, there were one time gains of 426 cr )
Bank’s standalone FY 25 outcomes -
NII - 28342 vs 25993 cr, up 9 pc
Other income - 11418 vs 10273 cr, up 11 pc
Net total income - 39760 vs 36266 cr, up 10 pc
Operating expenses - 18754 vs 16679 cr, up 12 pc
Op Profits - 21006 vs 19587 cr, up 7 pc
Provisions - 2942 vs 1573 cr, up 87 pc
PAT - 13720 vs 13782 cr ( flat YoY )
**CASA ratio @ 43 vs 45.5 pc YoY **
Total deposits @ 4.68 vs 4.08 lakh cr, up 15 pc YoY
CA @ 65.4 vs 60.2k cr, up 9 pc
SA @ 1.22 vs 1.23 lakh cr, down 1 pc
Term Deposits @ 2.8 vs 2.24 lakh cr, up 25 pc
**Total advances @ 4.44 vs 3.91 lakh cr, up 13 pc YoY **
Breakdown of advances -
Home loans + LAP @ 1.27 vs 1.06 lakh cr, up 19 pc
Business banking @ 42.8 vs 35.96k cr, up 19 pc
PL+BL+CD loans @ 24.8 vs 20.1k cr, up 24 pc
Credit cards @ 13.4 vs 14.5k cr, down 7 pc
CV/CE loans @ 43 vs 36.9k cr, up 17 pc
Agri loans @ 28 vs 27.8k cr, up 1 pc
Tractor finance @ 17.8 vs 15.8k cr, up 13 pc
Microfinance @ 6.6 vs 9.9k cr, down 33 pc
Commercial loans @ 95.6 vs 90.5k cr, up 6 pc
Corporate loans @ 35.7 vs 27.3k cr, up 31 pc
SME loans @ 12.1 vs 9.4k cr, up 29 pc
Asset Quality -
GNPAs @ 6134 vs 5275 cr
NNPAs @ 1343 vs 1271 cr
Total provisions held @ 6961 vs 5903 cr
NIMs @ 4.96 vs 5.32
Cost / Income @ 47.17 vs 45.99
RoA @ 2.21 vs 2.61
Subsidiaries annual results -
Kotak Securities -
PAT @ 1640 vs 1226 cr
Cash mkt share @ 9.4 vs 10.2 pc
Derivative mkt share @ 12.9 vs 12.6 pc
Kotak AMC -
PAT @ 977 vs 525 cr
Equity AUM @ 2.99 vs 2 lakh cr
Total AUM @ 6.7 vs 5.6 lakh cr
Kotak Life Insurance -
PAT @ 769 vs 689 cr
GWP @ 18.3 vs 17.7 k cr
Kotak Prime -
PAT @ 1015 vs 888 cr
NNPAs @ 1.0 vs 0.8 pc
Loan book @ 40.1 vs 34.5 k cr, up 14 pc
Consolidated PAT @ 19.1 vs 18.2 k cr
Consol RoE @ 13.12 vs 15.08
Book Value @ 792 vs 653, up 21 pc
Company was placed under an embargo by RBI wherein they were barred from online onboarding of customers for savings accounts and further disbursements of credit cards. The embargo lasted from Apr 24 to Feb 25. As a result, company’s share of unsecured credit fell from 11.8 vs 10.5 pc YoY
Acquisition of Standard Chartered’s personal loans portfolio helped them minimise the de-growth in their unsecured loans portfolio
Micro Fin saw book significant credit stress. Micro Fin loans de-grew 33 pc YoY. Company expects the stress to continue for another 2 Qts. Despite this, their micro fin vertical remained profitable on a full yr basis
Slippages in PL and CC are now showing a declining trend ( slippages in unsecured loans were elevated during the start of FY 25 ). The Standard Chartered’s portfolio is performing well
Cost of deposits stood @ 5.10 pc for FY 25
Broking and AMC businesses performed extremely well in FY 25
Easing liquidity, lifting of RBI embargo should help bank accelerate their growth going forward. Seeing good pickup in business in Apr 25
FY 25 standalone results look weak on the back of 2 yrs of high credit growth + low credit costs in FY 24 and FY 23
Bank added 200 branches in FY 25 vs 160 additions in FY 24. Total branches now stand @ 2148
Slippages in Q4 reduced sequentially to 1488 cr vs 1657 cr in Q3 ( a key positive )
The stress in Bank’s secured book is negligible. Most of the slippages ( as a percentage of loan book ) have originated from their unsecured book
Slippages in MFI segment continue to remain elevated ( likely to remain elevated for next 2 Qtrs as well )
Group’s subsidiaries now contribute 29 pc to their consolidated profits. Subsidiaries had a much better FY 25 vs the bank ( standalone )
The bank plans to launch new offerings in the affluent banking segment with an aim to grow the saving deposits at a faster rate
Aggressive provisioning ( in FY 25 ) resorted to by the bank should help them in FY 26 as the slippages start to moderate
Going forward, aim to grow loan book @ 1.5 to 2 times of India’s nominal GDP growth rate
Over next 3-4 yrs, the bank intends to grow its unsecured book to mid teen levels ( as a percentage of their total loan book ). This book did shrink in FY 25. But the situation is likely to reverse going forward. Bank is bullish about their credit card business on a medium to long term basis
The Bank believes, they r more of a SME + Retail bank. That is likely to with this continue going forward as well
Seeing better customer acquisition ( specially on the affluent side ) wef Q4. This should help them grow their SA balances. Have seen an improvement in their CASA ratio in Q4 vs Q3
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
6 Likes