Reliance Industries and Axis bank Q2 Results

By | October 15, 2012

Reliance Industries  Q2 Results Highlight

After staying out for three consecutive quarters RILBSE 0.53 % once again crossed the $1 billion net profit per quarter mark in the September 2012 quarter.

  • The net profit of Rs 5,376 crore was more or less in line with the street expectations, but a large support from other income means the company’s operations are under pressure, which would impact its market performance tomorrow.
  • The petrochemical was the worst sufferer as margins dropped to historic low levels of just 7.9% while the segment’s profits at Rs 1740 crore were the lowest in last three years.
  • On the other hand, the other income shot past Rs 2100 crore representing 31% of its pre-tax profits for the quarter. This was mainly due to rising cash balance with the company.
  • According to the provisional balance sheet given by the company its cash, bank and current investments at Rs 72,053 crore were substantially higher than the long-term and short-term borrowings put together at Rs 56,531 crore. The company’s total debt had stood at Rs 92,447 at consolidated level at year ended March 2012.

Verdict:Meet Streets Expectation and Stock should react positively.

 

 

Axis Bank Q2 Results Highlight

  • Net profit of Rs 1,124 crore for the quarter ended September 2012 against ET Now Poll estimates of Rs 1,101 crore.
  • Net interest income for the period increased to Rs 2,327 crore compared to ET Now estimates of Rs 2,308 crore.
  • Gross NPAs stood at 1.1 per cent against 1.06 per cent, quarter-on-quarter (QoQ).
  • Net NPAs were at 0.33 per cent vs 0.31 per cent, QoQ.
  • Provisions were at Rs 509 crore vs Rs 405 cr year-on-year
  • Other income increased to Rs 1,590 crore against Rs 1,230 crore, YoY.

Verdict:Meet Streets Expectation but Rise in Provisions and Gross NPA will be point of concern. Lets see how markets reacts

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