HFCL Limited Q1FY22 Financial Results

 HFCL Limited Q1FY22 Financial Results

 ·      Q1FY22 Consolidated Revenue jumped 72.46% YoY and stood at  ₹ 1,206.87 crore as compared to ₹ 699.76 crore in Q1FY21

·      Consolidated EBIDTA stood at ₹ 191.54 crore in Q1FY22 as compared to  ₹ 82.92 crore in Q1FY21; EBIDTA margin improved from 11.85% to 15.88% YoY

·      Consolidated PBT grew 326.46% to ₹ 124.05 crore from ₹ 29.17 crore in Q1FY21; PBT margin improved from 4.16% to 10.28% in Q1FY'22

·      Consolidated PAT grew to ₹ 90.69 crore as compared to ₹21.34 crore for Q1FY21, PAT margin improved to 7.52% in Q1FY22 as compared to 3.04% in Q1FY21

HFCL Limited, India’s leading technology enterprise engaged in the manufacture of high end transmission and access equipment, optical fibre and optical fibre cables and creating communication network for telecom service providers, Railways, Defence and Smart City & Surveillance, announced its unaudited financial results for the first quarter ended June 30, 2021 of FY22.

Consolidated Financial Highlights

 Particulars

	Q1 FY22 Rs. in Crore	Q1 FY21 Rs. in Crore	Change Y-o-Y %	Q4 FY21 Rs. in Crore	Change        Q-o-Q%
Revenue	1,206.87	699.76	72.46%	1,391.40	-13.26%
EBIDTA	191.54	82.92	131.12%	187.42	2.24%
EBIDTA Margin (%)	15.88%	11.85%	403Bps	13.47%	241Bps
PAT	90.69	21.34	325.82%	86.47	4.98%
PAT Margin (%)	7.52%	3.04%	448Bps	6.21%	131Bps

On a standalone basis, for the first quarter ended 30^th June, 2021, the Company reported a Revenue of ₹ 1,108.20 crore, EBIDTA of ₹ 165.05 crore, PBT of ₹ 110.05 crore, Tax of ₹ 29.51 crore and PAT of ₹ 80.54 crore.

Commenting on the Company’s performance, Mr. Mahendra Nahata, the Managing Director said, “Our sturdy performance of Q1FY22 demonstrates the foundation and efficacy of our strategy towards growth that we have been working upon over the recent years. The fact that we could execute well across manufacturing and supplies, project implementation and capex plans, in spite of the upheaval caused by the second wave of the pandemic, is a testimony of commitment of our people.

Commissioning of a dedicated 5G R&D centre at Bengaluru, on the back of newly constituted 5G business division, launch of another PM WANI model village ‘Baidebettu’ in Karnataka, running of manufacturing capacities at an optimum level of efficiency, fast progress being made on recently announced CAPEX across all manufacturing locations, the healthy enquiry and order inflows from the domestic and international markets both – all these are indicative of a promising path ahead.

Our operating environment continues to brim with possibilities. Expansion of BharatNet, rapidly growing fiber to the home segment, PLI scheme, additional spectrum allocation to the telcos and approval for 5MHz 4G spectrum for Indian Railways will all amplify our opportunity spectrum. We are geared up to leverage these opportunities with our market leading products and solutions which continue to get sharper with an added edges of technological advancements and cost competitive manufacturing.

Our collaborative pursuit of new product development in key 5G segments including 5G Radio Access Network (RAN) and 5G Transport equipment both for the Indian and international markets continues to make rapid progress. We stand well aligned with the India growth story with a sharper focus on technology indigenization and make in India for the world. The transformed HFCL that we have worked passionately and assiduously towards is ready to meet opportunities with preparation.”

Amara Raja Batteries Limited Records

 Amara Raja Batteries Limited Records 20% growth in PBT; Launches/Announces Major Sustainability Initiatives with Solar Power & Lead Recycling Plants

Driven by the revival in demand across all key sectors of the business, Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT), today reported a revenue of Rs 1960.12 crore in Q3 FY21 (Rs 1747.81 crores) and Profit Before Tax (PBT) of Rs 259.90 crores (Rs. 217.36 crores). The Earnings Per Share (EPS) for Q3 FY 21 was at Rs. 11.31

For the quarter ended on December 31, 2020,

                                                                                                                                Rs. in crores

Particulars	Quarter ended
	December 31, 2020	December 31, 2019
Net Revenue from operations	1960.12	1747.81
Profit Before Tax	259.90	217.36

The Board of the Directors also approved payment of an interim dividend of Rs. 5/- per equity share (representing 500%) on face value of Re. 1/- each for the financial year 2020-21.

In the automotive segment, revenue growth is aided by consistent growth in OEM and aftermarket segments and also the Export segment registered robust growth. The Telecom and commercial UPS market segments have also recorded a strong growth in the third quarter. Manufacturing capacities are fully ramped up to the optimum utilisation across all segments.

During the quarter ARBL has inaugurated the “Advanced Lithium Technology Research Hub” with Pilot plant facility for cell development. Amara Raja has developed a wide range of battery packs for e-Mobility and Energy storage applications and has secured approvals from various OE’s and fleet operators for commercial supplies.

To further support the sustainability initiatives, ARBL is setting up a 50MW solar power plant in Chittoor District of Andhra Pradesh at a total outlay of Rs 220 cr. This will further reduce the cost of power and simultaneously bring down the carbon footprint of the company.

As part of the overall lead procurement strategy, ARBL will set up a greenfield lead recycling unit with a capacity of 1 lac tons. This will help the company comply with recycling standards whilst adopting advance technology in the most environmentally friendly manner. The total capital outlay for this project is expected to be Rs 280 cr to be spent over the next 18 months.

Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited, said, “The Indian economy has started showing sharper signs of recovery, with reduction in COVID prevalence and ongoing vaccination drive boosting industry confidence. The rebounding of the economy, with recent lessons, is improving the prospects of various market segments, especially those in which were are operating. The Indian Government has recently announced many initiatives and PLI schemes which will accelerate the growth of E-mobility and renewable energy markets. We are assessing the investment opportunities in advanced and futuristic energy storage technologies to address these emerging market segments.”

Commenting on the Q3 performance, Mr. S. Vijayanand, CEO, Amara Raja Batteries Limited said, “We are going forward with strategic investments focused on improving operational efficiencies, cost optimisation and technology upgradation. The planned investments in Solar and lead recycling plants will further strengthen our resolve towards a cleaner environment through a sustainable circular economy and also aid reducing costs and provide long term support to our key raw material procurement.”

IDBI Bank reports 125% increase in

 IDBI Bank reports 125% increase in Net Profit at ₹ 324 crore for Q2 FY 2021

Highlights of Q2 FY 2021 (Quarter ending September 30, 2020) Financial Results

Major Highlights

• Bank reports Net profit of ₹ 324 crore  for Q2 FY 2021 against net loss ₹3,459 crore  for Q2-FY 2020
• Bank registers Profit Before Tax (PBT) of ₹ 665 crore for Q2 FY 2021 against Loss Before Tax of ₹ 4,632 crore for Q2 FY 2020.
•  Operating Profit for Q2 FY 2021 is ₹ 1,246 crore , YoY growth of 23%.
•  NII at ₹ 1,695 crore for Q2 FY 2021, YoY growth of 4%.
•  NIM at 2.70% for Q2 FY 2021,   YoY growth of 37 bps.
•  CASA ratio at 48.33%, YoY growth of 346 bps
• Net NPA at 2.67%. CRAR at 13.67% 
•   PCR stood at 95.96%.
  

Operating Performance

• Net Profit reported for Q2-2021 is ₹ 324 crore as against loss of ₹ 3,459 crore for Q2-2020. Net Profit for Q2-2021 has improved by 125% against ₹ 144 crore reported for Q1-2021.
•  PBT improved for Q2-2021 to ₹ 665 crore as against loss of ₹ 4,632 crore for Q2-2020. PBT for Q2-2021 has improved by 52% against ₹ 438 crore reported for Q1-2021.

• Operating profit for Q2-2021 improved by 23% to ₹ 1,246 crore as against ₹ 1,009 crore for Q2-2020.Net Interest Income (NII) for Q2-2021 improved by 4% to ₹ 1,695 crore as against ₹1,631 crore for Q2-2020
•  Net Interest Margin (NIM) improved by 37 bps to 2.70% for Q2-2021 as compared to 2.33% for Q2-2020
•  Cost of Deposit improved by 76 bps to 4.41% for Q2-2021 as compared to 5.17% for Q2-2020
• Cost of Funds improved by 80 bps to 4.73% for Q2-2021 as compared to 5.53% for Q2-2020.
• ·        Non-Interest Income to Total Income improved to 18.61% for Q2-2021 as compared to 16.57% for Q2-2020.
•   Cost to Net Income Ratio has improved to 54.96% in Q2-2021 from 62.11% in Q020.

Business Growth

• CASA increased to ₹ 1,08,217 crore as on September 30, 2020 as against  ₹ 1,04,027 crore as on September 30, 2019.

• Share of CASA in Total Deposits improved to 48.33% as on September 30, 2020 as against 44.87% as on September 30, 2019.

• The composition of Advances portfolio Corporate V/s Retail was realigned to 42:58 as on September 30, 2020 as against 47:53 as on September 30, 2019.

Asset Quality

• Gross NPA ratio improved to 25.08% as on September 30, 2020 as against 29.43% as on September 30, 2019 and 26.81% as on June 30, 2020.

•   Net NPA ratio improved to 2.67% as on September 30, 2020 as against 5.97% as on September 30, 2019 and 3.55% as on June 30, 2020.

• Provision Coverage Ratio (including Technical Write-Offs) improved to 95.96% as on September 30, 2020 from 91.25% as on September 30, 2019 and 94.71% as on June 30, 2020.

Capital Position

• Tier 1 improved to 11.06% as on September 30, 2020 as against 9.52% as on September 30, 2019.

• CRAR improved to 13.67% as on September 30, 2020 as against 11.98% as on September 30, 2019.

•   Risk Weighted Assets (RWA) reduced by 6.27% to ₹ 1,57,323 crore as on September 30, 2020 as against ₹ 1,67,842 crore as on September 30, 2019. Credit Risk weighted assets reduced by 6% to ₹ 1,28,087 crore from ₹ 1,36,789 crore as on September 30, 2019.

COVID 19 Impact

• ·        In accordance with the RBI guidelines relating to COVID-19, the Bank has granted a moratorium on the payment of installments and or interest, as applicable, falling due between March 1, 2020 and August 31, 2020 ('moratorium period') to eligible borrowers classified as Standard, even if overdue, as on February 29, 2020, without considering them as restructuring. Bank has made COVID-19 related provision of ₹ 247 crore in March 2020 quarter and ₹ 189 crore in June 2020 quarter. Cumulative COVID-19 related provision was ₹ 436 crore as at September 30, 2020. The provision made by the Bank is more than minimum required as per the RBI guidelines.

• ·        RBI has provided for Resolution framework for COVID -19 related stress vide circular dated August 6, 2020. Bank has as a prudent measure made provision of  ₹ 270 crore towards the expected provisioning requirement for cases to be restructured under the Resolution framework.

• ·        Pursuant to Supreme Court interim order dated September 3, 2020, in the PIL case of Gajendra Sharma vs Union Bank of India & Anr, Bank has not classified any borrower account as NPA, which has not been classified as NPA as on August 31, 2020. Bank has however maintained provision against the same under standard assets provision.  However, if the Bank had classified borrower accounts as NPA after August 31, 2020, the bank’s proforma Gross NPA ratio and proforma Net NPA ratio would have been 25.20% and 2.81% respectively.

Significant Developments during Q2 2021

• ·        IDBI Bank has launched Banking Services 24X7 on WhatsApp on October 15, 2020

• ·        IDBI Bank has won the Trusted Brand Award in the Banks - Private category as adjudged in a consumer survey entitled Reader’s Digest Trusted Brand, 2020.

• ·        The Bank extended its social media presence by launching its official Instagram account “idbibankofficial”.

• ·        IDBI Bank announced the launch of six specialized gold loan branches branded as “IDBI Swarna Kalash”, by remodeling its existing branches at Bengaluru, Hyderabad and New Delhi.

• ·        IDBI Bank has executed an agreement to sell up to 27% stake in its Joint venture Insurance arm, IDBI Federal Life Insurance Company Limited (IFLI), to other JV partners as Age Insurance International NV  and The Federal Bank Limited.

• ·        IDBI Bank became the first bank to have implemented the new feature of document embedding facility with Letter of Credit (“LC”) / Bank Guarantee (“BG”) messages over SFMS platform of IFTAS (a wholly owned subsidiary of Reserve Bank of India) through its middleware application i@Connect-SFMS (CSFMS) developed by IDBI Intech Limited.

• ·        IDBI Bank announced the launch of two new variants of NACH Facility namely E-NACH and B-NACH for Corporate Customers at large, and more specifically for customers falling under BFSI segment. With this, the Bank will provide a Web based solution, to its Corporate Customers, to facilitate their interbank, high volume, electronic transactions which are repetitive and periodic in nature. It is a step towards adding one more product in the Digital kitty of the Bank, for its Corporate Customers.

 The Board of Directors of IDBI Bank Ltd. (IDBI Bank) met in Mumbai today and approved the financial results for the Quarter ended September 30, 2020.

Equitas Holdings Limited [EHL] announces the

Equitas Holdings Limited [EHL] announces the Q1FY21 financial performance (unaudited) of its subsidiary Equitas Small Finance Bank [ESFBL]

PBT before provision & Write-off at Rs. 146 Cr, growth of 19% YoY

Cumulative COVID provisions of Rs. 144.63 Cr

Moratorium Opt in % at 43% as of July 2020 from 51% as of June 2020

Retail TD at Rs. 4,377 Cr, growth of 96% YoY

Q1FY21 Highlights:

1.      Key Highlights for Q1FY21:

 ·         Advances^{^}:

o   Advances^{^} as of Q1FY21 was at Rs. 15,573 Cr, Advances^{^} growth of 27% YoY 

o   The Bank disbursed Rs. 564 Cr in Q1FY21

o   76% of advances* is secured loans

 ·         Liabilities:

o   Deposits excluding CD at Rs. 11,471 Cr as on 30th June 2020, growth of 30% YoY and 11% QoQ

o   Retail TD at Rs. 4,377 Cr as on 30th June 2020, growth of 96% YoY and 15% QoQ

o   Savings Account deposits at Rs. 2,024 as on 30th June 2020, growth of 9% QoQ

o   CASA stood at Rs. 2,354 Cr as on 30th June 2020, CASA as a % of Total Deposits at 21%

^Advances = Gross Advances including IBPC issued

o   All the Channels (TASC, CA, Corporate Salary, NR) started their full-fledged functioning in Jun’20

·         Key Ratios:

o   Cost to Income⁺ at 66.41% in Q1FY21 as compared to 69.09% in Q1FY20

o   RoA^{^} and RoE^# for Q1FY21 at 1.20% and 8.72% respectively

·         Capital:

o   As of June 30, 2020 Total CRAR at 21.59% and Tier-I CRAR of 20.61%; Well above minimum regulatory requirements of 15% and 7.5%

o   Tier II Capital at 0.98%

 ·         Treasury & Liquidity:

o   Bank has undertaken Inter-Bank Participation Certificates (IBPCs) with a mix of PSL/Non-PSL advances which further enhances the liquidity of the Bank

o   Liquidity Coverage Ratio (LCR) as on 30.06.2020 at 139.4% much above the minimum regulatory requirement of LCR at 80%

o   Average cost of funds for Q1FY21 at 7.63%

2.      Profit & Loss:

o   Net Interest Income for Q1FY21 at Rs. 404 Cr as against Rs. 337 Cr in Q1FY20, NIM* at 8.63%

o   PBT before provisions and write off for Q1FY21 at Rs. 146 Cr as against Rs. 123 Cr in Q1FY20

o   During the quarter, Bank made provisions of Rs. 68.34 Cr including additional provision of Rs. 45 Cr for potential impact of COVID-19 in addition to Rs. 99.63 Cr COVID-19 provision created in last quarter.

o   The bank now carries Rs. 144.63 Cr of COVID-19 related provisions (other than Standard and NPA Provisions), which constitutes 0.93% of our total Gross Advances.

o   PAT for Q1FY21 at Rs. 60 cr as against Rs. 59 Cr in Q1FY20

NIM = Net interest income as a % of avg. income earning assets |⁺Cost to income ratio is calculated as a ratio of Operating expenses divided by Net Operating Income (Net Operating Income is a sum of net interest income and other income) ^RoA – ratio of the net profit for the period/year total average assets | RoE^# - Ratio of the net profit for the period/ to the average shareholders’ Equity

  3.      Balance Sheet:

 ·         Advances^{^} as of June 30, 2020 grew 27% YoY to Rs. 15,573 Cr

o   Micro Finance grew by 16% YoY from Rs. 3,124 Cr in Q1FY20 to Rs. 3,618 Cr in Q1FY21

o   Small Business Loans (Incl. HF) grew by 32% YoY from Rs. 4,926 Cr in Q1FY20 to Rs. 6,484 Cr in Q1FY21

o   Vehicle Finance grew by 25% YoY from Rs. 3,027 Cr in Q1FY20 to Rs. 3,776 Cr in Q1FY21

o   MSE Finance grew by 154% YoY from Rs. 280 Cr in Q1FY20 to Rs. 712 Cr in Q1FY21

o   Corporate Loans grew by 39% YoY from Rs. 555 Cr in Q1FY20 to Rs. 772 Cr in Q1FY21

4.      Liabilities & Branch Banking:

·         Deposits excluding CD at Rs. 11,471 Cr, growth of 30% YoY

·         Retail TD at Rs. 4,377 Cr as on 30th June 2020, growth of 96% YoY and 15% QoQ

·         Savings Account deposits at Rs. 2,024 as on 30^th June 2020, growth of 9% QoQ

·         CASA stood at Rs. 2,354 Cr as on 30th June 2020, CASA as a % of Total Deposits at 21%

 5.      Asset Quality:

·         GNPA^$ at 2.68% in Q1FY21 as compared to 2.72% in Q4FY20 and 2.73% in Q1FY20

·         NNPA^$ at 1.39% in Q1FY21 as compared to 1.50% in Q4FY20 and 1.54% in Q1FY20

6.      Moratorium Update:

Asset Products	As on June 2020	As on July 2020
	Opt in % of Gross Advances as on 31st March 2020	Opt in % of Gross Advances as on 30th June 2020
Micro Finance	59%	42%
Small Business Loans	42%	40%
New Commercial Vehicle Finance	65%	54%
Used Commercial Vehicle Finance	70%	60%
MSE Finance (Working Capital)	48%	46%
Corporate – NBFC Book	0%	0%
Corporate – Small Corporate	96%	96%
Total	51%	43%

^$GNPA & NNPA including IBPC