Q3 Results 2023: LTIMindtree, DCM Shriram, Union Bank, Bandhan Bank declare December quarter results - HIGHLIGHTS

Q3 Results 2023: More listed companies announced their quarterly earnings today. Among them were results LTIMindtree, DCM Shriram, UBI Q3 Results and Bandhan Bank. Earlier today, IEX, Ramkrishna Forgings, JSW Energy and Reliance Industries. Here are key takeaways from the results posted by these companies.    

LTIMindtree Q3 Results 2023: Net profit dips 4.6% to Rs 1000.7 crore

IT company LTIMindtree on Friday posted a consolidated net profit of Rs 1,000.7 crore for the December quarter, a 4.6 per cent decline over the year-ago period due to one-off impact of merger-related integration cost.

In November last year, L&T Group had announced operationalisation of the merger of Mindtree with LTI (Larsen & Toubro Infotech), creating the country's sixth-largest software firm.

The company's net profit stood at Rs 1,000.7 crore in the December 2022 quarter, compared to Rs 1,050.1 crore in the same period previous year.

The revenue from operations came in at Rs 8620 crore for just-concluded Q3FY23, up 25.2 per cent on a year-on-year basis.

We are pleased to report a strong Q3 FY23, our first as LTIMindtree," Debashis Chatterjee, Chief Executive Officer and Managing Director of the combined entity said.

The combined entity has started out with a USD 1 billion quarterly revenue run rate, a top-quartile constant currency year-over year revenue growth of 16.3 per cent and a robust order inflow of USD 1.25 billion, he added.

The net profit was 15.8 per cent lower when compared to the previous sequential quarter (September quarter), while the revenue translated into a growth of 4.7 per cent quarter on quarter.

The company expects its sequential growth momentum to accelerate in Q4 as the impact of furloughs eases.

"As expected, our Q3 profitability has seen a one-off impact of merger-related integration cost to the tune of 100 basis points. With the bulk of the integration cost behind us and in view of the growth tailwinds ahead, our endeavour is to return to our normalised profitability in Q4," Chatterjee told reporters during the company's earnings call.

While the company sees a higher level of caution baked into the spending plans across sectors on account of macroeconomic dynamics "there have been no program cancellations to date".

"Although some clients have deferred certain projects and are taking relatively longer to make decisions, the overall focus on longer-term transformation remains intact across sectors," he said.

For now, there is a marked emphasis on initiatives that generate cash conservation and speedier return on investment.

"In a number of instances, clients are focusing on cost take-out to fund their transformation projects. However, the pressing urgency to drive technology-led innovation to prepare for future opportunities holds significant long-term upside for our full stack end-to-end capabilities and people," Chatterjee said.

He said that the banking, financial services and insurance (BFSI) business surged 22 per cent year on year; this portion alone is at an annual revenue run rate of USD 1 billion.

"The continued revenue momentum was driven by significant deal wins, including rate increases and a growing pipeline of large deals. While marketing tech and operations, cloud, risk and compliance and M&A integration drive sustained demand, we are seeing cost optimisation, customer experience transformation and regulatory or efficiency-focused initiatives emerge as key areas of focus," Chatterjee informed.

The company's headcount stood at 86,462 as of December 31, 2022. The trailing 12 months attrition was at 22.3 per cent. The Board of Directors has recommended an interim dividend of Rs 20 per equity share of par value Re 1 each.

DCM Shriram Q3 Results 2023: Net profit down 2% to Rs 342 crore; total income up 21% to Rs 3,417 crore

DCM Shriram Ltd, which is into chemicals, sugar, bioseed and fertiliser businesses, on Friday reported a marginal decline in its December quarter consolidated net profit to Rs 342.09 crore.
Its net profit stood at Rs 349.57 crore in the year-ago period.

Total income rose 21 per cent to Rs 3,417.06 crore during October-December quarter of this fiscal from Rs 2,815.95 crore in the corresponding period of the previous year.

During the April-December period of 2022-23 financial year, the net profit rose to Rs 724.17 crore from Rs 664.94 crore a year ago. Total income rose to Rs 9,324.75 crore in the first nine months of the current fiscal from Rs 7,039.67 crore in the corresponding period of the previous year.

Ajay Shriram, Chairman & Senior Managing Director, said the company has reported another consistent quarter of robust performance with positive/stable outlook across all the businesses.

"The operating environment is very challenging globally. Russia-Ukraine conflict does not seem to be concluding, Covid fears are back, there are risks of recession, the inflation seems to have peaked, however the monetary tightening is expected to continue albeit at a lower pace. India is better placed in terms of the growth story and so are each of our diversified businesses," he added.

The chloro-vinyl business is delivering reasonable returns although they have come off their all-time highs, said company's Vice Chairman & Managing Director Vikram Shriram.

"In Chlor-alkali, the product prices are off-their historic peak, the input costs continue to be elevated driven by energy prices. The margins for the Vinyl business were under pressure during the quarter, owing to reduced global demand and increased supply, the scenario is now improving," he added.

Sugar business continues to operate in a favourable policy environment, but to meet the Ethanol blending programme more policy measures are required, especially for the state of Uttar Pradesh, said Vikram Shriram.

UBI Q3 Results 2023: Two-fold jump in Q3 net profit to Rs 2,245 crore

State-run Union Bank of India on Friday reported a two-fold jump in its December quarter net at Rs 2,245 crore, helped by a huge jump in recoveries from loans written-off earlier.

Union Bank of India posted a 20 per cent increase in loans and 13.6 per cent in deposits, its chief executive and managing director A Manimekhalai said, adding that it will have to moderate on advances in the last quarter due to the divergence between the two.

Its core net interest income grew 20.26 per cent to Rs 8,628 crore on the back of the loan growth and a 0.21 per cent expansion in the net interest margin to 3.21 per cent.

The non-interest income grew 29.58 per cent to Rs 3,271 crore, and was helped majorly by the recoveries from the written-off assets at Rs 1,090 crore which is a 204 per cent jump from the Rs 358 crore in the year-ago period.

Total income increased to Rs 24,154 crore in the latest December quarter from Rs 19,454 crore in the year-ago period, Union Bank of India said in a regulatory filing.

Manimekhalai said the bank will achieve a 10-12 per cent credit growth in FY23, and also retained other guidance issued by it earlier, including those on slippages and recoveries.

Reverses in the retail, agriculture and small businesses portfolios, coupled with two corporate accounts, led to a slippages of Rs 2,500 crore for the quarter which takes the overall slippages to 9,700 crore for FY23 till now as against a guidance of Rs 13,000 crore.

The gross non-performing assets ratio stood at 7.93 per cent as of December 31, 2022 as against 11.62 per cent in the year-ago period and 8.45 per cent in the preceding September quarter.

On the recoveries front, the overall number achieved in the first nine months of the fiscal stands at Rs 13,609 crore, and the bank will be able to achieve the target of Rs 15,000 crore on this front, Manimekhalai said.

When asked about the deposits side, she said the bank tried bolstering the number with bulk deposit accretion, relying on certificate of deposits and also introduced a new retail deposit product and added that similar efforts will continue even in the future.

The bank is confident of achieving the 3 per cent NIM target for FY23, she added.

Manimekhalai said the bank will be going for a qualified institutional placement of shares to raise up to Rs 3,800 crore in the fourth quarter, and already has the board go-ahead for the same.

Without mentioning how long would the new money suffice, she said this will help bring down government stake in the bank by 4 percentage points to 79 per cent and help it move closer to the 75 per cent target set by capital markets regulator Sebi.

The overall capital adequacy ratio stood at 14.45 per cent as of December 31, 2022, with the CET-1 at 10.71 per cent, which will go up by 0.60 per cent after the capital raise.

The Union Bank scrip closed 0.37 per cent down at Rs 81.30 apiece on the BSE on Friday, as against a 0.39 per cent correction on the benchmark.

Bandhan Bank Q3 Results 2023: profit plummets 64% to Rs 291 crore

Private sector Bandhan Bank on Friday reported a 64 per cent fall in its December quarter net profit at Rs 290.56 crore owing to decline in net interest income and rise in provisions for bad loans.

The Kolkata-based new generation bank had posted a net profit of Rs 858.97 crore in the year-ago period.

However, the bank's total income increased to Rs 4,840.94 crore in the latest December quarter from Rs 4,117.76 crore a year ago, it said in a regulatory filing.

Operating profit too declined to Rs 1,922.2 crore as against Rs 1,950.1 crore in the third quarter of the previous year.

Net Interest Income of the bank declined by 2.1 per cent to Rs 2,080.4 crore from Rs 2,124.8 in the corresponding period of the preceding year.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 7.15 per cent, as compared to 10.81 per cent at the end of October-December quarter of previous fiscal.

At the same time, net NPAs eased to 1.86 per cent as against 3.01 per cent in the previous year.

Provision and contingencies nearly doubled to Rs 1,541.49 crore over Rs 805.71 crore in FY2022.

The capital adequacy ratio declined to 19.1 per cent in the December quarter as against 20 per cent.