Trackpad

HCL Tech Reports 8 Per Cent Revenue Growth

IT major HCL Tech posted consolidated net profit of Rs2188 crore for the second quarter ended September 30, up by around 9 per cent as compared to Rs2014 crore during same period last year. 

The company has maintained its full-year revenue growth guidance between 10.5 per cent and 12.5 per cent in constant currency terms. The consolidated revenue of the company also rose by 8 per cent year-on-year to Rs12,434 crore during July-September quarter, as against Rs11,519 crore during corresponding period last year. The company’s EBIT grew by 0.3 per cent to Rs2451 crore but its margin contracted 40 basis points to 19.7 per cent as compared with previous quarter. The company also announced dividend of Rs2 per share, maintaining dividend payout for the 59th consecutive quarter. 

HCL continued its strong client addition drive during the second quarter, adding 24 clients in USD 5 million category, 11 in USD 10 million band, 2 clients in USD 20 million, 3 in USD 40 million, 5 in USD 50 million and 1 client in USD 100 million category.

Infosys Registers 7 Per Cent Profit Growth In Q2FY18 

IT bellwether Infosys said that its profit for July-September quarter grew by 7 per cent sequentially to Rs3726 crore. The company slashed its full year constant currency revenue growth guidance to 5.5-6.5 per cent from 6.5-8.5 per cent earlier. Its revenue during the quarter increased 2.9 per cent to Rs17,567 crore and the dollar revenue grew 2.9 per cent at Rs2728 crore as compared to previous quarter. Revenue growth in constant currency terms was 2.2 per cent for the quarter. The company has retained its full year operating margin guidance at 23-25 per cent and expects revenue growth at 3-4 per cent in rupee terms. The EBIT for the company stood at Rs4246 crore, up 3.3 per cent QoQ and margin was at 24.2 per cent, increasing 10 bps QoQ. The company declared an interim dividend of Rs13 per equity share. 

The company’s active clients increased by 72 and stood at 1,173 at the end of September 2017. It has added one client in USD 100 million category, 3 in USD 25 million category, 7 in USD 5 million band and 14 clients in USD 1 million category.

Recapitalization Boost For The Banking Stocks 

The government on Tuesday announced Rs2.1 lakh crore capital infusion for state-owned banks, out of which Rs1.35 lakh crore will be from bonds, Rs18,000 crore from budgetary support and the remaining Rs58,000 crore will be through sale of shares. 

The announcement was a reiteration of government’s commitment to the strengthen public sector banks. The move is expected to ease PSU banks’ capital deficiency and marginally encourage lending. It will largely address asset quality stress and act as precursor to consolidation. In return, the government has asked PSUs to register themselves on TReDS platform and clear dues to MSMEs within 3 months. This is expected to help fuel growth and increase jobs in the MSME sector. 

The capital infusion programme will run over the current fiscal and the next and will be supported with further reforms to make lenders more accountable. With government taking several other initiatives to revive investment, large consolidated PSU banking entities will receive larger share of capital from the exercise and are likely to play a more meaningful role in the next up cycle.

HDFC Bank Q2 profits up by 20 per cent 

HDFC Bank’s net profit has risen by 20 per cent in the second quarter of financial year 2018. This was achieved notwithstanding the surging provisions, most of which are directed towards project loan that has undergone flexible structuring. 

The net profit of the bank rose to Rs4,151 crore in the second quarter of FY18, as against Rs3,455 crore in the same quarter of the previous fiscal. However, asset quality pressure on the bank increased in the September quarter as the gross non-performing assets grew by 52 per cent on a year-on-year basis. The private sector banking major posted a net increase of Rs460 crore in its gross NPAs for the corresponding quarter. 

The bank’s net interest income for the September quarter was higher by 22 per cent at Rs9,752 crore, while its other income increased by 24 per cent to Rs3,606 crore. The bank’s total deposit shot up to Rs6,89,346 crore, higher by 16.5 per cent on a yearly basis. The CASA deposits in total deposit also improved to 42.9 per cent in the corresponding quarter as compared to 40 per cent in the previous year.

ICICI Pru Posts Flat Profit At Rs421 Crore In Q2 

ICICI Prudential Life Insurance, the country’s largest private sector insurer, posted an almost flat growth in the second quarter of fiscal year 2018. However, the company’s value of new margin improved by nearly 150 basis points. 

The net profit of the company for the September ended quarter stood at Rs421 crore, higher than Rs418 crore posted in the previous fiscal. Meanwhile, the company also announced an interim dividend of Rs3.40 per equity share of face value Rs10 for the half year ended September 30, 2017. 

The insurance major has been largely concentrating on its unit-linked insurance products (ULIPs) to benefit from the rally in the stock markets, which has contributed about 80 per cent to the new business premium of the company. 

The company posted a 17 per cent increase in its new business annualised premium equivalent to. 1,869 crore. The business annualised premium equivalent is a measure of new business written and computed as the sum of annualised first year premiums on regular premium policies and 10 per cent of single premiums.

IDFC Opens 100Th Branch; Posts 40 Per Cent Decline In Q2 Profits 

The private sector IDFC Bank, in accordance with its strategic expansion plan, launched its 100th branch at Honnali in Karnataka. The bank is set to expand its network in metro cities in the coming one year to achieve balanced presence in all metro, urban and rural geographies. 

The bank has also been working towards expanding digital inclusion and bridge the gap between rural and urban ways of banking. Out of the total 100 branches of the bank, about 17 branches are located in metro cities. Its strategic expansion plan is likely to add 100 more branches to the bank’s network. 

The bank also announced its Q2 results on October 25, posting a 40 per cent decline in its profit. The bank’s net profit fell to Rs234 crore in the second quarter of FY18, as against Rs388 crore in the same quarter of the previous fiscal. 

However, the bank’s gross bad loans decreased to 3.92 per cent at the end of September, as against 4.13 per cent in the preceding quarter and 5.96 per cent in the previous year.