Axis Bank, Bajaj Finserv, HUL Q4 no. Here’s what investors should know

Axis Bank share price on Thursday declined 0.76% to 881.05. Also, the share price of HUL fell by around 1.5 per cent to close at 7.00. 2,468.20 each. However, that was not the case with Bajaj Finserv, whose share price ended with a gain of 1.9% 1,359.95 on BSE at Rs.

axis Bank:

Private sector lender, Axis Bank reports net loss 5,728. As against a profit of 42 cr in Q4FY23 4,117.77 crore in the same quarter a year ago, the purchase cost of Citibank’s India consumer division was outstanding during the quarter. Net Interest Income (NII) which is the difference between the interest earned and the interest spent, stood at 11,742 crore, growing strongly at 33% YoY.

The bank has recommended a dividend of Re 1 each for FY23. while it is planned to increase 35,000 crore by issuing debt instruments

Includes but is not limited to long-term bonds, non-convertible debentures, perpetual debt instruments, AT1 bonds, infrastructure bonds, and Tier II capital bonds or such other debt securities.

Read here: Axis Bank Q4 results: Net loss on 5,728. 42 crores

STOXBOX Research Analyst Shreyansh Shah said Axis Bank’s Q4FY23 numbers showed a huge loss due to one-time non-recurring items, including full amortization of intangibles and goodwill paid on the acquisition of Citibank India Consumer equal to the purchase price. Business However, the bank was able to achieve healthy loan growth across all its business segments, with domestic corporate loans growing by 24%, mid-corporate by 38% and SME loans by 23%.

Additionally, Shah said, “The bank’s NIM improvement was led by structural drivers such as improving balance sheet mix, reduction in the share of low-yielding RIDF bonds and improving CASA composition. Further, alternatively Despite the higher loss in 4QFY23, we believe the bank’s continued efforts along with the acquisition of Citibank will reflect on key parameters such as RoA and RoE going forward.”

Meanwhile, Rahul Malani, Deputy VP, Research Analyst, Sharekhan by BNP Paribas said, “The bank has reported a weak operating performance for Q4FY23. PAT (adjustment for extraordinary items) was mainly due to lower credit cost The bank reported a loss. The extraordinary item that was expected was the acquisition of Citibank’s retail portfolio. The extraordinary items included goodwill, one-time acquisition costs, additional provisions and other operating expenses related to the acquisition of intangible assets. 12,490 crore was included for amortization of Rs. 10,000 crores. The overall asset quality metrics are stable.”

Bajaj Finserv:

The NBFC giant reports 31.4% growth in consolidated net profit 1,769 crore in Q4 of FY23 as compared to a profit of Rs. 1,346 crore in the same quarter a year ago. stood at consolidated total income 23,625 crore 25.2% Vs. 18,862 crore in the third quarter of the last financial year. Interest income increased by 31% 11,025 crore in the fourth quarter 8,383 crore in the same period a year ago.

Read the full report here: Bajaj Finserv Q4 Results: 31.4% growth in consolidated profit

ICICI Direct in its note highlighted that Bajaj Finserv saw a healthy performance led by the lending business; The insurance segment remains volatile.

Going forward, the brokerage’s note said, “Earnings improvement remains positive with healthy AUM growth and strong guidance. Insurance business remained marginally subdued on premium accretion in Q4FY23. Comment remains cautious.”

Hindustan Unilever (HUL):

FMCG major reports 12.74% YoY growth in consolidated net profit 2,601 crore, while consolidated income grew by 11% 15,375 crores. In addition, the consolidated sale came 14,953 crore during the quarter up 11% YoY. In terms of segment-wise performance, HUL’s revenue for home care segment grew by 18.85%, while revenue for beauty and personal care grew by 10.84%. However, the foods and refreshments segment saw revenue growth of 2.6%.

The board of the company has recommended a final dividend of Rs. 22 per share for FY23.

Read HUL’s Q4 earnings report here!

Manish Chowdhary, head of research, Stocksbox, said, “FMCG major, HUL reported underlying volume growth of 5% in FY23, led by strong demand in the home care segment’s fabric wash and home care business. However, beauty and personal Care and Foods & Refreshments segment volumes were down in single digits. The company saw a decline in its operating margin due to higher commodity inflation and weak rural demand. Also, delayed winter and unseasonal rains resulted in slower growth in ice cream. Premium High inflation in the tea category is causing business disruption with the company’s tea business.”

He also added, “While the management remained cautiously optimistic about the rural recovery, it is too early for us to expect that the worst is behind us as the near-term outlook remains uncertain. Going forward, we will look at prices Will continue to monitor.” Look for signs of an increase in the company’s overall volumes as opposed to further price increases in items such as barley and milk powder (still showing strength).”

Amnish Agarwal – Head of Research, Prabhudas Lilladher said, “Urban markets continue to lead volumes, while rural volumes have improved sequentially. The quarter saw improvement in sequential margins with NMI improving by 2% QoQ . Inflation has eased in core articles, but remains elevated year-on-year. However, the operating environment remains volatile with a high inflation outlook and adverse weather conditions on the cards.” He added, “We have an Accumulate rating on the stock with a TP of Rs 2800. The stock is trading at 42.1x FY25 EPS.”

Further, in its note, ICICI Direct said, “In the last six to eight months, major crude and palm oil related commodities have depreciated significantly, resulting in a gradual improvement in margins for the company. Range is down. Our estimate. We believe the company is capitalizing on lower commodity prices in terms of grammage growth aggressively looking to cut prices or drive volumes. Volumes up 5% in FY23 despite a low base Growth remains on the lower side. We believe the discretionary sales of BPC and malt beverage brand categories in the food segment remain under pressure. We believe HUL’s growth in FY24 with lower price growth Volume growth to remain in the mid-single digits. We remain cautious on the growth outlook as well as the potential for margin expansion. High competitive activity.

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