Highlights: ICICI Bank, Kotak Mahindra Bank, UltraTech Cement announce December quarter results
Q3FY23 Live Updates: Private sector lenders ICICI Bank and Kotak Mahindra Bank along with cement major Ultratech Cement announced their third-quarter results for this fiscal on Saturday, January 21, 2023.
Among these Nifty50 companies, IDFC Firsts Bank, Dodla Dairy, and other mid and small cap companies also released their third earnings today.
Here are the latest updates on important Q3 results for ICICI Bank, Kotak Bank, Ultratech and SBI Life.
Q3FY23 Live Updates: Private sector lenders ICICI Bank and Kotak Mahindra Bank along with cement major Ultratech Cement announced their third-quarter results for this fiscal on Saturday, January 21, 2023.
Among these Nifty50 companies, IDFC Firsts Bank, Dodla Dairy, and other mid and small cap companies also released their third earnings today.
Here are the latest updates on important Q3 results for ICICI Bank, Kotak Bank, Ultratech and SBI Life.
Latest Updates
ICICI Bank Q3 Results: Provisions
Provisions (excluding provision for tax) increased by 12.5% year-on-year to Rs 2,257 crore (US$ 273 million) in Q3-2023 from Rs 2,007 crore (US$ 243 million) in Q3- 2022.
During the quarter, the Bank has changed its provisioning norms on nonperforming assets to make them more conservative.
This change resulted in higher provisions amounting to Rs 1,196 crore in Q3-2023. Provisions for Q3-2023 also include contingency provision of Rs 1,500 crore (US$ 181 million) made on a prudent basis.
ICICI Bank Q3 Results: Capital Adequacy
ICICI Bank’s total capital adequacy ratio at December 31, 2022 was 18.33% and Tier-1 capital adequacy was 17.58% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.
ICICI Bank Q3 Results: Asset Quality Improves
The gross NPA ratio declined to 3.07% at December 31, 2022 from 3.19% at September 30, 2022 and 4.13% at December 31, 2021.
The net NPA ratio declined to 0.55% at December 31, 2022 from 0.61% at September 30, 2022 and 0.85% at December 31, 2021.
ICICI Bank Q3 Results: Loan Growth
The retail loan portfolio grew by 23.4% year-on-year and 4.5% sequentially, and comprised 54.3% of the total loan portfolio at December 31, 2022.
The SME business, comprising borrowers with a turnover of less than Rs 250 crore (US$ 30 million), grew by 25.0% year-on-year and 8.3% sequentially at December 31, 2022.
The domestic corporate portfolio grew by 18.2% year-on-year and 4.7% sequentially at December 31, 2022.
The rural portfolio grew by 12.5% year-on-year and 3.8% sequentially at December 31, 2022.
ICICI Bank Q3 Results: Profit, NII, NIM
Profit after tax grew by 34.2% year-on-year to Rs 8,312 crore (US$ 1.0 billion) in Q3-2023.
Net interest income (NII) increased by 34.6% year-on-year to Rs 16,465 crore (US$ 2.0 billion) in Q3-2023 from Rs 12,236 crore (US$ 1.5 billion) in Q3-2022.
The net interest margin was 4.65% in Q3-2023 compared to 3.96% in Q3-2022 and 4.31% in the quarter ended September 30, 2022 (Q2-2023). The net interest margin was 4.33% in 9M-2023.
Kotak Bank Q3 Deposits
UltraTech Q3 Results: Capacity Expansion
Under the first phase of capacity expansion announced in December 2020, Ultra Tech commissioned 5.5 mtpa new capacity during Q3FY23:
- 1.9 mtpa greenfield integrated cement plant at Pali Rajasthan. The Company along with its subsidiary now has 16.25 mtpa cement capacity in the state of Rajasthan spread over 5 separate plant locations.
- 1.8 mtpa greenfield grinding unit at Dhule, Maharashtra, taking the total capacity in Maharashtra to 19.45 mtpa;
- 1.8 mpta brownfield 2nd integrated unit at Dhar Madhya Pradesh, taking the total capacity in the state of Madhya Pradesh to 18mtpa.
UltraTech Q3 Highlights
Kotak Bank Q3 Results: Highlights
UltraTech Q3 Results: Operations
Domestic grey cement sales volume rose 13% YoY and 12% QoQ, respectively. Energy and raw material costs were up 33% and 13% YoY, while they remained flat on a sequential basis. UltraTech achieved capacity utilisation of 83% as against 75% during Q3FY22.
Kotak Bank Q3: Asset Quality
Recoveries and upgrades during the quarter: Rs 874 cr
SMA2 as of 31st Dec, 2022: Rs 191 cr
No sale of any loans during the period
Standard Restructured FB o/s under various frameworks: COVID: Rs 281 cr; MSME: Rs 484 cr [0.25% of Advances]
Total provisions held: Rs 6,570 cr
COVID-19 provision of Rs 400 cr (Rs 38 cr reversed in Q3FY23)
Restructuring provision of Rs 185 cr, maintaining higher than regulatory requirement
UltraTech Cement Q3 Results
Consolidated Net Sales were Rs 15,299 crores from Rs 12,710 crores over the corresponding period of the previous year. Profit after tax was Rs 1,058 crores as compared to Rs 1,173 crores in Q3FY22, resulting in subdued margins.
Kotak Bank Q3 Results
Private lender's profit grew by 31 per cent year-on-year (YoY) to Rs 2,792 crore, while NII was up over 30 per cent YoY Rs 5653 crore in October-December quarter of FY23.
ICICI Bank Q3: Brokerage Expectations
B&K Research expects a strong set of numbers overall. It expects growth to be strong at 15-16% YoY, driven by retail and SME/Business Banking. NIMs are likely to rise YoY (flattish QoQ) leading to strong NII 16 growth YoY.
The brokerage also expects yet another quarter of strong Core PPOP growth and estimate slippages to decline QoQ. May see some utilization of contingent provisions. Overall profitability is likely to remain strong.
B&K Research On Banks
We maintain our positive stance on the banking sector as banks have managed Covid-19 induced stress much better. Stress formation in 2HFY22 should improve significantly and consequently, credit costs should move towards a long-term average or even better.
With asset quality normalization, we expect Growth and Digital preparedness to be the key catalysts for stock performance, where large banks have a structural edge. They have a better portfolio mix, higher capital, funding edge, strong digital/ distribution capabilities, and a customer acquisition engine.