Saturday, April 28, 2012
AXIS BANK = Q4 & FY 2012 RESULTS = EXCELLENT PERFORMANCE = NPT UP 25% FOR Q4 YoY; UP 25% FOR FY 12 YoY.
Axis Bank Limited
NSE Symbol AXISBANK
AXIS BANK has declared its results for the Q4 FY 2012 ending March,2012 and for FY 2012.
Results at a Glance
Net Profit during Q4FY12 rose to Rs.1,277 Cr from Rs.1,020 Cr in Q4FY11, a growth of 25% YOY. Net Profit for FY12 stood at Rs.4,242 Cr, up by 25% from Rs.3,388 Cr for FY11.
Demand Deposits grew 18% YOY from Rs.77,767 Cr as on March 31, 2011 to Rs.91,422 Cr as on March 31, 2012. Savings Bank deposits in the same period grew by 26% YOY and Current Account deposits by 8%. CASA ratio as a result moved up to account for 42% of aggregate deposits.
Net Interest Income and Fee Income for FY12 clocked a growth of 22% & 25% respectively. Net Interest Margin for FY12 was 3.59% compared to 3.65% in FY11.
Operating profit for FY12 grew 16% YOY.
Asset quality was healthy with Net NPAs for FY12 at 0.25% & provision coverage at 81%.
The Bank is well-capitalised with a Capital Adequacy Ratio of 13.66% as at the end of FY12 compared to 12.65% as at the end of FY11. Tier-I capital was 9.45% as at the end of FY12, as against 9.41% at the end of FY11.
STAND ALONE RESULTS (Q4 FY 12)
Interest on Advances in Q4 FY 2012 stands at Rs.4257.87Cr; compared to Rs.3963.56Cr in Q3 FY 12,the Previous Qtr, up by 7.43%; and compared to Rs.3062.64 Cr in Q4 FY 11, the corresponding Qtr – up by 39.03%.
Income on Investments in Q4 FY 2012 stands at Rs.1737.56 Cr; compared to Rs.1775.23Cr in Q3 FY 12,the Previous Qtr, down by -2.12%; and compared to Rs.1213.06 Cr in Q4 FY 11, the corresponding Qtr – up by 43.24%.
Interest Earned in Q4 FY 2012 stands at Rs.6060.32 Cr; compared to Rs.5776.96Cr in Q3 FY 12,the Previous Qtr, up by 4.91%; and compared to Rs.4366.66 Cr in Q4 FY 11, the corresponding Qtr, up by 38.79%.
Other Income in Q4 FY 2012 stands at Rs.1587.62 Cr; compared to Rs.1429.81Cr in Q3 FY 12, up by 11.04%; and compared to Rs.1450.40 Cr in Q4 FY 11, up by 9.46%.
Total Income in Q4 FY 2012 stands at Rs.7647.94 Cr; compared to Rs.7206.77Cr in Q3 FY 12, up by 6.12%; and compared to Rs.5817.06 Cr in Q4 FY 11, up by 31.47%.The improvement under all income heads YoY is impressive.
Interest Expended in Q4 FY 2012 stands at Rs.3914.23 Cr; compared to Rs.3636.66 Cr in Q3 FY 12, up by 7.63%; and compared to Rs.2665.66 Cr in Q4 FY 11, up by 46.84%.
Net Interest Income in Q4 FY 2012 stands at Rs.2146.09 Cr; compared to Rs.2140.30 Cr in Q3 FY 12, up by 0.27%; and compared to Rs.1701.00 Cr in Q4 FY 11, up by 26.17%. Growth in NII, YoY is also very good.
Total Expenditure(excl.provisions) in Q4 FY 2012 stands at Rs.5610.39 Cr; compared to Rs.5147.57 Cr in Q3 FY 12, up by 8.99%; and compared to Rs.3996.25 Cr in Q4 FY 11, up by 40.39%. Increase in Expenditure is proportionately more – compared to total income, YoY.
Operating Profit in Q4 FY 2012 stands at Rs.2037.55 Cr; compared to Rs.2059.20 Cr in Q3 FY 12, down by -1.05%; and compared to Rs.1820.81 Cr in Q4 FY 11, up by 11.9%.
Provisions in Q4 FY 2012 stands at Rs.139.28 Cr; compared to Rs.422.33 Cr in Q3 FY 12,down by -67.02%; and compared to Rs.254.39 Cr in Q4 FY 11, down by -45.25%. Provisions have come down very significantly in current Qtr
Profit before tax in Q4 FY 2012 stands at Rs.1898.27 Cr; compared to Rs.1636.87 Cr in Q3 FY 12, up by 15.97%; and compared to Rs.1566.42 Cr in Q4 FY 11, up by 21.19%. The reduction in Provisions has helped to boost PBT well.
Tax Expense in Q4 FY 2012 stands at Rs.621 Cr; compared to Rs.534.60 Cr in Q3 FY 12, up by 16.16%; and compared to Rs.546.31 Cr in Q4 FY 11, up by 13.67%.
Net Profit in Q4 FY 2012 stands at Rs.1277.27 Cr; compared to Rs.1102.27 Cr in Q3 FY 12, up by 15.88%; and compared to Rs.1020.11 Cr in Q4 FY 11, up by 25.21%. The Net Profit has increased well Yoy as well as QoQ.
Face Value stands at Rs.10; and Paid-up Equity is Rs.413.20
Capital Adequacy Ratio is very Good at 13.66%
Basic EPS for Q4 FY 12 is Rs.30.94; compared to Rs.26.73 in Q3 FY 12; Rs.22.33 in Q2 FY 12;Rs.22.92 in Q1 FY 12; and Rs.24.87 in Q4 FY 11.
% of Gross/Net NPA is down at 0.25% in Q4 FY 12; compared to 0.39% in Q3 FY 12 and 0.26% in Q4 FY 1.
Return on Assets is improving well. It is at 1.88% in Q4 FY 12; 1.68% in Q3 FY 12; 1.81% in Q4 FY 11.
ANNUAL (CONSOLIDATED) RESULTS
The results for FY 2012 (Consolidated) are compared below with FY 2011 and FY 2010.
Interest on Advances in FY 2012 stands at Rs.15379.35 Cr; compared to Rs.10403.10 Cr in FY 2011, up by 47.83%; and Rs.7986.60 Cr in FY 2010, up by 92.56%.
Income on Investments in FY 2012 stands at Rs.6394.27 Cr; compared to Rs.4438.69 Cr in FY 2011, up by 44.06%; and Rs.3428.31 Cr in FY 2010, up by 86.51%.
Interest Earned in FY 2012 stands at Rs.21994.90 Cr; compared to Rs.15154.86 Cr in FY 2011, up by 45.13%; and Rs.11639.05 Cr in FY 2010, up by 88.98%.
Other Income in FY 2012 stands at Rs.5487.19 Cr; compared to Rs.4671.45 Cr in FY 2011, up by 17.46%; and Rs.3964.21 Cr in FY 2010, up by 38.42%.
Total Income in FY 2012 stands at Rs.27482.09 Cr; compared to Rs.19826.31 Cr in FY 2011, up by 38.61%; and Rs.15603.26 Cr in FY 2010, up by 76.13%.
Interest Expended in FY 2012 stands at Rs.13969.18 Cr; compared to Rs.8588.61 Cr in FY 2011, up by 62.65%; and Rs. 6632.63 Cr in FY 2010, up by 110.61%.
Total Expenditure(excl.provisions) in FY 2012 stands at Rs.20069.07 Cr; compared to Rs.13449.08 Cr in FY 2011, up by 49.22%; and Rs. 10395.02 Cr in FY 2010, up by 93.06%.
Operating Profit in FY 2012 stands at Rs.7413.02 Cr; compared to Rs.6377.23 Cr in FY 2011, up by 16.24%; and Rs.5208.24 Cr in FY 2010, up by 42.33%.
Provisions in FY 2012 stands at Rs.1143.03 Cr; compared to Rs.1280.03 Cr in FY 2011, down by -10.70%; and Rs. 1389.19 Cr in FY 2010, down by -17.72%. The definite trend in decreasing provisions is reflective of the quality of assets.
Profit before tax in FY 2012 stands at Rs.6269.99 Cr; compared to Rs.5097.20 Cr in FY 2011, up by 23.01%; and Rs.3819.05 Cr in FY 2010, up by 64.18%.
Tax Expense in FY 2012 stands at Rs.2051.48 Cr; compared to Rs.1752.52 Cr in FY 2011, up by 17.06%; and Rs.1340.91 Cr in FY 2010, up by 52.99%.
Net Profit in FY 2012 stands at Rs.4218.51 Cr; compared to Rs.3344.68 Cr in FY 2011, up by 26.13%; and Rs.2478.14 Cr in FY 2010, up by 70.23%.
Consolidated NPT in FY 2012 stands at Rs.4219.78 Cr; compared to Rs.3339.91 Cr in FY 2011, up by 26.34%; and Rs.2478.14 Cr in FY 2010, up by 70.28%. The YoY increase during last 2 years is very good .
Reserves stand at Rs.22268.51 Cr; compared to Rs.18484.06 Cr, up by 20.47%; and Rs.15583.77 Cr in FY 2010, up by 42.9%.
Basic EPS stands at Rs.102.4 in FY 12; Rs.81.77 in FY 11 (up by 25.23%); Rs.64.83 in FY 10 (Up by 57.95%). On an annualized basis, EPS has exceeded Rs.102 on a FV of Rs.10.
Current Market price of the share is Rs.1123. The 52 week high price is Rs.1408.50 and the 52 week low price is Rs.784. The PE Ratio on the last year’s earnings works out to 10.97.
Q4 FY 12 EPS is Rs.30.94. On that, Basis annualized EPS (forward) is Rs.30.94 x 4 = 123.76 (with scope for good improvement in FY 13). Based on this, the PE Ratio is 9.07 -– which indicates good scope for price appreciation in a Normal Market.
Performance Highlights of Q4FY12
•Growth in the Bank’s core businesses
–Total Net Advances grew 19% YOY to Rs.1,69,760 Cr
–Total Investments grew 29% YOY to Rs.93,192 Cr
–Total Assets grew 18% YOY to Rs.2,85,628 Cr
–Fees grew 8% YOY to Rs.1,327 Cr
–Share of demand deposits in total deposits stood at 42%.
•Retail Advances grew by 35% YOY to Rs. 37,570 Cr; constituted 22% of total advances, as compared to 19% at the end of Q4FY11.
•Net NPAs at 0.25%, as compared to 0.26% at the end of Q4FY11.
•At the end of Mar’12, book value per share was Rs.552, as compared to Rs.462.77 at the end of Mar‟11
•Capital Adequacy stood at 13.66% with Tier-I capital at 9.45%
Ø Net NPA as at year-end
Ø FY08 0.36%
Ø FY09 0.35%
Ø FY10 0.36%
Ø FY11 0.26%
Ø FY12 0.25%
Cumulative Restructured Assets: Rs.3,060 crore (1.58% of gross customer assets) as on 31st Mar 2012
•Loans amounting to Rs.1,121 crore have a 2 years track-record of repayment
•Adjusting for these loans, restructured assets would make up 1% of gross customer assets
· Additions to Restructured Assets during Q4FY12: Rs.588 crore
· Enam Update :
The Board of Axis Bank Limited (“Axis”) have approved the reassessment of valuation of financial services business proposed to be acquired from Enam Securities Private Limited (“ESPL”) considering the prevailing market conditions and having regard to underlying commercial factors. Pursuant to the Revised Scheme and in consideration for the proposed demerger, Enam Shareholders would receive Axis Bank shares in the ratio of 5 shares for every 1 share held in Enam, translating into approximately 2.93% shareholding in Axis Bank. The proposed transaction is subject to requisite regulatory approvals including High Courts of Gujarat and Maharashtra and from the shareholders and creditors of the respective companies.
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