Q3 Results 2023: REC, CSB Bank net up 5%; TCI profit jumps 23% to 95 crore

Q3 Results 2023: Several isted companies announced their December quarter earnings on Monday. Among the were REC, whose net profit was up 5 per cent to Rs 2,915.33 crore in Q3. The company also declares a dividend of Rs 3.25 per share. Meanwhile, Transport Corporation of India reported Q3FY23 net profit rise of 23 per cent to Rs 95 crore. Another company which announced its Q3 earnings was CSB Bank. Here are key takeaways from the results posted by these companies.

REC Q3 Results 2023: net up 5% to Rs 2,915.33 crore in Q3; declares Rs 3.25/share 2nd interim dividend

State-owned non-banking finance firm REC on Monday posted over five per cent rise in its consolidated net profit at Rs 2,915.33 crore in the quarter ended December, mainly due to lower expenses.

The consolidated net profit of the company was Rs 2,773.44 crore in the corresponding quarter of the preceding fiscal, a BSE filing showed.

Total expenses of the company dipped to Rs 6,185.24 crore in the quarter from Rs 6,617.51 crore in the same period a year ago

Total income also came down to Rs 9,795.47 crore in the quarter from Rs 10,069.11 crore a year ago.

The board has approved declaration of the 2nd interim dividend at the rate of Rs 3.25 per equity share of Rs 10 each for 2022-23.

The record date for the 2nd interim dividend is Thursday, February 9, 2023 and that shall be paid on Tuesday, February 28.

The board also revised the market borrowing limit for 2022-23 to Rs 98, 000 crore from Rs 85,000 crore approved earlier.

Transport Corporation of India Q3 Results 2023: profit rises 23% to Rs 95 crore

Supply chain and logistics solutions provider Transport Corporation of India Ltd (TCI) on Monday reported a 23 per cent growth in standalone profit after tax at Rs 95 crore in the quarter ended December 2022.

The company had posted a PAT (Profit After Tax) of Rs 78 crore in the same quarter of FY22, TCI said in a statement.

Revenue from operations during the reporting quarter grew 16 per cent year-on-year at Rs 881 crore, it said.

"The company has accomplished consistent performance amidst a stable macro environment in the third quarter of the current fiscal. All our business segments have delivered satisfactory results in line with expectations," said Vineet Agarwal, Managing Director at TCI.

While the company keeps a balanced view on the industry-wide challenges around inflation and tightening of credit, "we are confident of achieving our goals to build an integrated multi-modal logistics solutions organisation," he added.

CSB Bank Q3 Results 2023: net inches up 5%; gold loans share over 45% of total assets

The Kerala-based mid-sized lender CSB Bank (formerly Catholic Syrian Bank) on Monday reported a muted 5 per cent growth in net profit to Rs 156 crore despite record margins and a 26 per cent rise in advances for the quarter to December.

Led by a hefty 51 per cent jump in gold loans, its total advances grew 26 per cent to Rs 18,456.70 crore, while deposits rose 19 per cent to Rs 22,664 crore.
CSB Bank has over 45 per cent of its assets in gold loans.

During the reporting quarter, its gold loan book soared 51 per cent to Rs 8,780.30 crore from Rs 5,825.50 crore a year ago, the company said.

It's very high gold loan exposure, which works out to be 45.4 per cent of its overall loan assets, giving the lender an industry high 5.8 per cent net interest margin (up marginally on-year), which the managing director and Pralay Mondal said is not sustainable as the bank will have to offer better pricing to its depositors going forward.

This record high margin pushed up its core net interest income by 15 per cent to Rs 350 crore from Rs 303 crore a year ago.

Even after we complete our seven-year growth roadmap by FY27, we still will have at least 25 per cent of our assets in gold loans,? Mondal told PTI from his headquarters in the central Kerala city of Thrissur over phone, discounting any risks to the bank's balance-sheet due to the heavy reliance on one asset base. No other commercial bank has such heavy dependence on one asset class.

Explaining the tepid profit numbers, the chief financial officer of the bank BK Divakara said the net income would have been higher by over Rs 11 crore, had it not been for 100 per cent provisioning made for the security receipts, following the revised RBI guidelines on the same issued last September.

Instead of making staggered provisions towards this, we thought of fully providing for at one-go and as when the SRs mature, the entire money will come back to the profit book, he said, adding non-core income also performed well growing 65 per cent.

However, the bank made progress on the asset quality front with reduction in both gross and net bad loan ratios.

While gross NPAs declined to 1.45 per cent from 1.65 per cent or Rs 271.3 crore, net NPAs also marginally improved 0.42 per cent from 0.57 per cent at Rs 77.7 crore.

The bank's provision coverage ratio improved to 91.93 per cent from 90.1 per cent a year ago and a core capital base stood at 25.78 per cent.

Mondal said the bank will be commercially launching credit cards this quarter and wants to build a strong franchise on this product. To diversify the asset base the bank will be adding 100 more branches each this and next fiscals.

Earlier today, Indian frontline indices S&P BSE Sensex and NSE Nifty50 not just ended their 2-day losing streak but also rebounded from 3 month lows on Monday. While the Sensex closed at 59,500.41, up 169.51 points or 0.29 per cent, the broader market Nifty50 closed at 17,648.95, higher by 44.60 points or 0.25 per cent. The banking gauge Nifty Bank also managed a green closing at 40,387.45 finishing 42.15 points or 0.1 per cent higher.

In the 50-stock Nifty50, 29 stocks advanced with Bajaj Finance, Adani Enterprises, UltraTech Cement Company, Bajaj Finserv and Asian Paints ending as top gainers. The top losers were Power Grid, Bajaj Auto, IndusInd Bank, Larsen & Toubro and JSW Steel.