Q3 Earnings Today: Companies continued to report their Q3 results on Thursday as several heavyweights reports multifold increase in their net profits. This comes after banking and IT shares tanked on Indian equity markets at the backdrop of Tech Mahindra, which saw consolidated profits decline by 61 per cent to Rs 510.4 crores. However, the real estate sector stood out, limiting Sensex and Nifty indices’ fall.
JSW Steel
On the back of strong domestic demand, JSW Steel Ltd on January 25 (Thursday) reported a five-fold rise in consolidated net profit at Rs 2,450 crore for December quarter against Rs 474 crore in the year-ago period. Income during the third quarter increased to Rs 42,134 crore from Rs 39,322 crore in the year-ago period.
“The strong performance was driven by capacity utilisation rising to 94 per cent during the quarter vs 89 per cent in Q2 FY24 at the Indian operations,” the company said in a statement.
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Among the largest steel producers, JSW group is also into energy, infrastructure, cement, paints, sports, and venture capital.
Shares of JSW rose 3.50 points, or 0.43 per cent at Rs 815.70.
SBI Life
SBI Life Insurance Company posted a 6 per cent rise in net profit of Rs 322 crore against 306 crores in the corresponding quarter year ago. However, the company’s net premium income rose by 16 per ceny year-on-year at Rs 22,316 crore.
One of the key indicators of profitability, Value of New Business (VNB) stood at Rs 1,680 crore during the quarter under review, reflecting a 11.3 per cent rise from Rs 1,510 crore. VNB margin was up 24.4 per cent in this quarter, marking a minor downfall from 27.8 per cent a year ago. SBI Life’s new business premium advanced by 17 per cent at 17,762 crores during October-December quarter.
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Shares of SBI Life dipped 29.65 points, or 2.10 per cent at Rs 1380.90.
PNB
State-owned Punjab National Bank (PNB) posted an over three-fold increase in its profit to Rs 2,223 crore for the third quarter ended December 2023 vs Rs 629 crore year-on-year (YoY). Its total income increased from Rs 25,722 crore to Rs 29,962 crore during the quarter under review.
The bank’s interest income rose to Rs 27,289 crore compared to Rs 22,384 crore with gross non-performing assets (NPAs) declining to 6.24 per cent from 9.76 per cent a year ago. The bank reported a sharp reduction in bad loans to 0.96 per cent from 3.30 per cent at the end of the third quarter of the previous fiscal.
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Company’s Asset Under Management (AUM) witnessed 24 per cent growth at Rs 3,71,410 crore vs Rs 2,99,987 crore in the corresponding quarter a year ago.
Shares of PNB inched 2.30 points, or 2.25 per cent at 104.50.
ACC
Cement manufacturer ACC Ltd posted a more than four-fold jump in net profit to Rs 537.67 crore in the December quarter against Rs 113.19 crore a year ago, helped by a 28 per cent reduction in kiln fuel cost. The reduction in fuel cost is driven by the optimisation of fuel mix and higher consumption of alternative fuels.
Revenue from operations of the Adani group company was up 8.31 per cent to Rs 4,914.36 crore vs Rs 4,536.97 crore in the corresponding period a year ago. ACC Ltd’s total expenses in the December quarter were down 1.61 per cent to Rs 4,278.78 crore as against Rs 4,349.23 crore of Q3 of FY23.
ACC’s revenue from the cement business was up 9.76 per cent to Rs 4,646.04 crore as against Rs 4,232.64 crore in the corresponding quarter.
“Operating EBITDA (excluding other income) has grown 139 per cent, EBITDA margin expanded by 10 pp from 8.4 per cent to 18.4 per cent,” said an earning statement from ACC.
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ACC’s operational excellence initiatives continue to help in improvement of “productivity, performance and optimisation of cost,” ACC said in the exchange filing.
Over the outlook, the company said cement demand in India will continue to grow at 7-8 per cent, primarily fuelled by investments in infrastructure and large-scale residential housing projects.
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Shares of ACC advanced 227.05 points, or 10.13 per cent to Rs 2467.65.
With inputs from PTI