Q4FY23 Results Update for Equitas Small Finance Bank, Godrej Consumer, CAMS, KFin Technologies, Dr Reddy, Federal Bank, Marico on MoneyWorks4Me

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Equitas Small Finance Bank Ltd

Advances grew by 35% YoY 27,861 Cr in Q4FY23. NII grew 28% YoY and 9% QoQ, Other income grew 66% YoY and 38% QoQ, NIM’s stable at 9.10%. Deposits grew 34% YoY 25,381 Cr, CASA ratio at 42.28%

GNPA & NNPA at 2.60% & 1.14% in Q4FY23 as compared to 4.06% & 2.37% in Q4FY22. PAT grew 59% YoY to 190 Cr in 4QFY23; For FY23 PAT grew 104% YoY to 574 Cr.

Good results driven by advances growth and decline in NPA.

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Godrej Consumer limited

Consol. sales growth stood at 10% YoY 3,200 Cr. India’s business was up 12% YoY led by 11% volume growth. Revenue from branded business grew 16% YoY (14% YoY home care to 826Cr and 17% YoY personal care to 872Cr) driven by 13% YoY volume growth. In-home care: household insecticide revenue grew 13-14% YoY, while air freshener portfolio continued to gain market share. In personal care: Magic hand wash recorded >10% volume-led revenue growth, while hair color continues to consistently drive double-digit revenue growth.

Consol. gross margins expanded 342bps YoY to 52.9%. Overall EBITDA grew 37% YoY to Rs640 led by operating leverage. India’s EBITDA margins expanded 279bps YoY to 26.4%. Ad-spends in India grew 41% YoY. Employee costs was up 36% YoY. Consol. net profit grew 24% YoY to Rs452Cr.

Good result on account of volume-led revenue growth and Operating profit expansion.

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Computer Age Management Services

Revenue grew 2.5% YoY to 249 Cr. Mutual fund AUM serviced grew by 5.3% to 28 lakh Cr, with equity component at 46.4% in Q4FY23 as compared to 41.2% in Q4FY22. Non-MF segment – CAMSPay grew by 25% QoQ and insurance repository business grew by 14% QoQ, & Alternative Services vertical grew by 21% YoY. EBITDA margins declined to 43.8% n 4QFY23 v/s 46.1% in 4QFY22. PAT declined by 0.6% to 285 Cr.

Stable results with a slowdown in the MF industry offset by other segments of the business.

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KFin Technologies Ltd

Revenue grew by 12.6% YoY to 720 Cr; Mutual Fund AAUM growth at 7.0% YoY at 12.8 Lakh Cr, market share at 31.6%. Equity component in Mutual fund AUM at 54.7% in Q4FY23 as compared to 53.9% in Q4FY22. Issuer Solutions segment revenue grew by 31.9% to 98 Cr, corporate clients list grew by 12% YoY to 5,363. EBITDA at 298 Cr, EBITDA margins declined to 41.4% from 45% in FY22. PAT grew by 31.8% to 195 Cr.

Good Results, driven by equity AUM mix, and issuer solution segment.

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Dr Reddy

Revenues grew 15.3% YoY to 6315 Cr, mainly driven by growth in the US and India markets followed by improvement on the Europe front. The reported gross margin was 69.9% and the EBITDA margin was ~25.1%. However, excluding gRevlimid and Eris brand sales, the company’s gross margins stood at 65% and EBITDA margin at 20%. Adjusted PAT increased 192.6% YoY to 952.5 Cr. Despite the reported quarter being backed by a strong margin US portfolio and favourable forex movement.

Week result on account of missed margin expectation.

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Federal Bank

Net advances grew by 20% YoY to 1.77 Lakh Cr. Total Deposits grew by 17% YoY to 2.13 lakh Cr. CASA ratio at 32.6% vs. 36.9% in Q4FY22. Net interest income (NII) grew by 25% YoY to 1,904 Cr, Net interest Margins saw a decline by 18 bps QoQ to 3.31%. GNPA at 2.36% & NNPA at 0.69% in Q4FY23.Other Income grew by 58% YoY to 734 Cr and Net Profit at 903Cr, up 67% YoY.

Results were good on account of lower provisions and high other income.

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Marico

Marico registered a good performance in Q4FY2023 with volume-led revenue growth of 3%to Rs.2,240 Cr, OPM expansion by 153 bps YoY to 17.5%, and PAT growth at 10% YoY to Rs. 283 Cr. Parachute Coconut Oil posted 9% YoY volume growth, Value Added Hair Oils (VAHO) delivered 13% YoY value growth, while the Saffola franchisee declined by 9% (value terms) YoY. Foods continued to scale up well and reported 18% YoY value growth, while Premium Personal Care grew by 20%+ and the Digital First portfolio maintained its healthy run rate. The international business delivered 16% CC YoY growth with expansion in margins. The management has maintained its aspiration to deliver a 13-15% revenue growth aided by 8-10% volume growth in the domestic business and double-digit CC growth in the international business in the medium term.

Good result on account of volume-led revenue growth and Operating profit expansion.

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