Kansai Nerolac slips 6%, hits 52-week low as Q4 PAT declines 81%

 

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Portions of Kansai Nerolac hit a 52-week low of Rs 403, down 6 percent on the BSE in Wednesday's intra-day exchange after the organization revealed a sharp fall in its net benefit for the March quarter (Q4FY22). Its net benefit declined an incredible 80.9 percent year on year (YoY) to Rs 24.5 crore because of quieted deals and higher natural substance cost.

The organization's net income from tasks became 4.2 percent YoY to 1,413 crore. Profit before interest, expenses, devaluation, and amortization (ebitda) was down 60% YoY to Rs 82.9 crore, while edge strongly shrunk by 1,000 bps to 5.4 percent from 15.37 percent.

The administration said the quarter saw influence as far as interest for enhancing business because of the lofty cost increment taken towards the finish of Q3FY22. In the car fragment, traveler vehicles request was great however it was influenced due to supply side requirements.

On natural substance costs, the quarter kept on seeing inflationary tensions alongside unpredictability in rough and trade rates because of the intense geo-political circumstance worldwide.

Generally speaking interest circumstance is supposed to stay solid, and company stays positive and very much ready to improve. It is normal that cost increments taken in FY21-22 will gather in the approaching year. The organization will take a stab at more cost expansions in modern, the administration said....READ MORE

DCB Bank hits 52-week high post March quarter earnings

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DCB Bank shares hit a 52-week high of Rs 211, up 4 per cent, on the BSE, in an otherwise weak market on Monday, after the private sector lender reported healthy earnings for the last quarter of fiscal 2018-19 (Q4FY19).

The stock was trading close to its all-time high level of Rs 213 apiece hit on June 16, 2017, on the BSE. In comparison, the benchmark S&P BSE Sensex was down 0.67 per cent at 38,878 points at 10:49 am. The trading volumes on the counter has more than doubled with a total of 6.35 million shares exchanging hands on the BSE and NSE so far.

DCB Bank’s profit after tax rose 50 per cent to Rs 96 crore in Q4FY19, on the back of higher net interest income (NII). The bank’s net profit stood at Rs 64 crore for the same period last year. NII grew 16 per cent at Rs 99 crore against Rs 85 crore in the corresponding quarter of the previous fiscal.

The bank’s asset quality improved sequentially, as gross and net non-performing assets (NPAs) dipped around 1 and 6 per cent QoQ, respectively. Net interest margins (NIMs) were almost flat at 3.8 per cent, though compressed 38 bps YoY. Management is confident of "retaining NIMs at current levels".

"The bank fulfilled its almost prophetic guidance of 1 per cent on return on average assets (RoAA) despite macro challenges like demonetization and GST. While loan growth disappointed in Q4FY19 (16 per cent), stable margins, improving op-lev and asset quality impressed," analysts at HDFC Securities said.


 The brokerage firm, in its results preview, had said that with its core growth engine intact, DCB Bank "has the potential to grow at faster rates."."(We anticipate) upgraded earnings by around 12/16 per cent for FY20/21E. A significant improvement in resulting efficiencies (anticipated) drives up our RoAA estimate to around 1.2 per cent by FY21E," it had said with ‘buy’ rating on the stock and target price of Rs 228 per share...Read More