Q4 Results 2024 Updates: HUL, Axis Bank, LTIMindtree, Indian Hotels Company, DCB Bank, more announced earnings (2024)

Rahul Malani, Research Analyst, Sharekhan by BNP Paribas

“Axis Bank reported better than expected performance in Q4FY24 led by better NIMs and higher treasury gains. YoY growth numbers are not fully comparable due to the acquisition of the Citi portfolio w.e.f 1 March 2023. Core PPoP grew by 7% q-o-q led by better outcome on NIMs (+5 bps vs decline 10 bps expectations) and strong core fee income. Deposits growth outpaced loan growth driven by CA, retail term and wholesale deposits. Asset quality improved sequentially. CET 1 (Common Equity Tier 1) capital consumption was 28 bps during the quarter.”

The Bank added 125 branches during the quarter and 475 overall in the FY24 period, taking its overall distribution network to 5,377 domestic branches and extension counters situated across 2,963 centres compared to 4,903 domestic branches and extension counters situated in 2,741 centres as at 31st March 2023. As on 31st March 2024, the Bank had 16,026 ATMs and cash recyclers spread across the country.

As on 31st March 2024, Axis Bank’s reported Gross NPA and Net NPA levels were 1.43 per cent and 0.31 per cent respectively as against 1.58 per cent and 0.36 per cent as on 31st December 2023. Recoveries from written off accounts for the quarter was Rs 919 crore. Reported net slippages in the quarter adjusted for recoveries from written off pool was Rs 398 crore, of which retail was Rs 1,061 crore, CBG was negative Rs 62 crore and Wholesale was negative Rs 601 crore.

As on 31st March 2024, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 79 per cent, as compared to 81 per cent as at 31st March 2023 and 78 per cent as at 31st December 2023.

The Bank’s balance sheet grew by 12 per cent on-year at Rs 14,77,209 crore as on March 31 2024. The total deposits grew by 13 per cent YoY and 6 per cent QoQ on period end basis, of which savings account deposits grew 2 per cent on-year and 4 per cent QoQ, current account deposits grew 5 per cent YoY and 18 per cent QoQ; total term deposits grew 22 per cent YoY and 5 per cent QoQ of which retail term deposits grew 17 per cent YoY and 5 per cent QoQ. The share of CASA deposits in total deposits stood at 43 per cent.

The Bank’s operating profit for the quarter stood at Rs 10,536 crore, up 15 per cent YoY and 15 per cent QoQ. Core Operating profit for Q4FY24 came in at Rs 9,515 crore, reporting a growth of 5 per cent on-year and 8 per cent sequentially.

Axis Bank reported its fourth quarter earnings for the financial year 2023-24 with profit at Rs 7613.55 crore from a loss of Rs 5371.18 crore during the fourth quarter of FY23. The Bank’s Net Interest Income (NII) grew 11 per cent YoY and 4 per cent QoQ to Rs 13,089 crore. Net interest margin (NIM) for Q4FY24 stood at 4.06 per cent and grew 5 bps QOQ.

The LTIMindtree board of directors have recommended a final dividend of Rs 45 per equity share of Re 1 each for approval of shareholders at the ensuing Annual General Meeting. “Subject to approval of shareholders, the final dividend will be paid within 10 days from the conclusion of the AGM. Record Date for the purpose of determining shareholders eligible to receive dividend and the date of AGM, shall be intimated in due course,” the company said in a regulatory filing.

The HUL board also recommended a final dividend of Rs 24 for the financial year ended 31st March, 2024 on equity shares of Re 1 each. The company had earlier paid an interim dividend of Rs 18 per share on 16th November, 2023. The total dividend for the said period amounts to Rs 42 per equity share of face value of Re 1 each.

Hindustan Unilever Limited (HUL) reported its fiscal fourth quarter profit at Rs 2558 crore, down 1.6 per cent on-year in comparison to Rs 2600 crore during the same period last year. It posted revenue from operations during the quarter at Rs 15,210 crore, up 24.5 per cent as against Rs 12,215 crore during the quarter ended March 31, 2023.

“We continue our steady scale up journey, with growth in chosen products, as per strategy, namely, Mortgages, Agri & Inclusive Banking, Construction Finance and Gold. Our deposit franchise has registered strong growth, while continuing to maintain its granular profile. Upgrades and recoveries continue to be good, resulting in lower credit costs. We intend to continue to improve growth and profitability.”

DCB Bank’s Gross NPA during the quarter stood at 3.23 per cent from 3.43 per cent in the previous quarter. Net NPA, meanwhile, fell to 1.11 per cent from 1.22 per cent during the last quarter. Capital adequacy ratio of the bank stood at 16.59 per cent at the end of March 31, 2024.

The company board also recommended a dividend of Re 1.25 per equity share of face value Rs 10 each of the Bank. “The Board of Directors has also fixed the record date for determining the eligibility of Members entitled to receive dividend on equity shares as Friday, May 10, 2024,” the company said in a regulatory filing.

DCB Bank posted its fiscal fourth quarter earnings with profit at Rs 155.68 crore, up 9.5 per cent in comparison to Rs 142.21 crore during the fourth quarter of FY23. Its Net Interest Income (NII) for the quarter increased by 4.4 per cent on-year to Rs 507.5 crore.

The board has recommended a dividend of Re 1 per equity share of Rs 10 each fully paid-up subject to the approval of the members at the ensuing Annual General Meeting (AGM) of the Bank. The record date for the purpose of determining eligibility of members entitled to receive the dividend shall be intimated later, the Bank said.

Equitas Small Finance Bank Limited reported its fourth quarter profit at Rs 207.62 crore, up 9.3 per cent in comparison to Rs 190.04 crore posted during Q4FY23. It said that the annualized gross slippages were stable at 3.87 per cent for Q4FY24 as compared to 3.06 per cent in Q4FY23.

The bank’s GNPA improved by 8 bps YoY to 2.52 per cent in Q4FY24 as compared to 2.60 per cent in Q4FY23. NNPA improved by 2 bps YoY to 1.12 per cent in Q4FY24 as compared to 1.14 per cent in Q4FY23.

The board approved the appointment of Rajesh Jayaram as Head Product and Senior Managerial Personnel with effect from May 1, 2024.

Further, based on the recommendation of the Audit Committee, the board at its meeting, also approved reappointment of M Siroya and Company, Practicing Company Secretaries as the Secretarial Auditor of the Company for the financial year 2024-25.

Nippon Life India Asset Management Limited board recommended a final dividend of Rs 11 per equity share of Rs 10 each for the financial year ended March 31, 2024, for the approval of the shareholders at the ensuing Annual General meeting. “With this the total dividend for the financial year 2023-24 would be Rs 16.50 per equity share, including the interim dividend of Rs 5.50 per equity share distributed in November 2023. The record date to determine those shareholders who will be eligible to receive the payment of final dividend, subject to shareholder’s approval, will be Friday, June 28, 2024,” the company said in a regulatory filing. The payment date for final dividend will be on and from July 16, 2024, it added.

The board of directors of the company have recommended an equity dividend (final) of 550 per cent for FY24, i.e, Rs 55 per equity share of face value Rs 10 each on the paid up share capital. The final dividend, it said, would be paid within 30 days from the date of declaration at the AGM.

Chennai Petroleum Corporation Limited reported its fourth quarter earnings for the financial year 2023-24 with profit at Rs 627.89 crore, down 38 per cent on-year in comparison to Rs 1,012.81 crore during the same period last year. It posted revenue from operations at Rs 20,822.95 crore, down 2.5 per cent as against Rs 21,350.05 crore during the fourth quarter of FY23.

AU Small Finance Bank Limited is expected to report Q4FY24 profit at Rs 354.6 crore today, in comparison to Rs 424.6 crore posted during the same period last year. Per a CNBC TV18 poll, the NII will be at Rs 1,355.7 crore. Investors will keep a watch on slippages in credit card book.

Private sector lender Axis Bank will post its Q4FY24 earnings today with estimated profit at Rs 6,207.4 crore as against a loss of Rs 5,728.4 crore incurred during the same period last year. The bank’s NII will be at 12,803.9 crore, said a CNBC TV18 poll.