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Q1 results 2023: Company results are important for the mood on Dalal Street as the stock market trades at historic highs. Market observers and investors alike are eagerly awaiting business reports following the end of the April to June 2023 quarter since the market needs a solid Q1 earnings season in order to experience further upside. Today will see the release of Q1 results from eleven public firms, including HDFC Bank, Tata Elxsi, LTIMindtree, Central Bank of India, and CRISIL.
The market is anticipating some stronger figures from the listed firms after a robust results season following the conclusion of Q4FY23 because the Indian economy has been able to advance further. The Indian economy experienced a strong GST collection, better-than-expected GDP figures, a decline in inflation, etc. in the April to June quarter. Therefore, it is anticipated that this results season would yield higher figures than the last results season.
Expectations for HDFC Bank’s Q1 performance in 2023 :
Since it is the first report since the massive merger between HDFC Bank and Housing Development Finance Corporation (HDFC), Q1 results from HDFC Bank in 2023 are eagerly awaited. A lot of attention will be paid to HDFC Bank’s Q1 results because of predictions of significant loan growth and integration advantages from the merger. According to analysts, HDFC Bank would record a standalone net profit of 11,580 crore for the months of April through June, which would be a remarkable increase of 25.9% over the same time last year. Net interest income (NII) is expected to increase by 23.2% year over year to 24,000 crore, according to their forecast.
Gross advances increased by 15.8% YoY, hitting 16,15,500 crore as of June 30, 2023, according to HDFC Bank’s business update, which was released on July 5. The same time saw a 19.2% increase in deposits, bringing the total to 19,13,000 crore. Despite a 10.7% increase in deposits for current and savings accounts (CASA), the CASA ratio fell from 45.8% to 42.50% year over year. HDFC Bank is anticipated to do better than its competitors despite having a lower CASA ratio, which implies a higher cost of capital.
Results for the fourth quarter of HDFC Bank :
The fourth quarter ended March 31, 2023 (Q4FY23) of HDFC Bank had a 19.8% increase in net profit year over year to $12,047.5 crore. For the quarter under consideration, net interest income (NII) increased by 23.7% to 23,351.8 crore. While the bank’s deposits and credit both grew strongly in Q4, provisions sharply decreased. The asset quality of the bank remained steady as well.
Additionally, the bank’s net revenue increased by 21% YoY to 32,083.0 crore for the quarter compared to Q4 of FY22’s net revenue of 26,509.8 crore.
Results for the fourth quarter of Tata Elxsi :
For the fourth quarter of the fiscal year that ended in March (Q4FY23), Tata Elxsi Ltd. recorded a 26% increase in net profit over the same period last year, coming in at 201.5 crore. The company that is a part of the Tata group had previously recorded a profit of 160.01 crore. For the fourth quarter of fiscal year 23, the company’s operating revenue increased by 23%, from 681.7 to 838 crore. From 817.7 crore, it increased 2.5% sequentially. Total revenue for the IT company for Q4FY23 increased by 23.4% year over year to 863.6 crore from Q4FY22’s total revenue of 699.8 crore.
