Thursday, May 3, 2012

VIJAYA BANK - RESULTS FOR Q4 FY 2012 - FY 2012 vs FY 2011 vs FY 2010 - Q4 NPT up by 15% - FY 12 down from FY 11, FY 10


Vijaya Bank
NSE Symbol        VIJAYABANK

Vijaya Bank has reported improved Results for the Q4 FY 2012 ending Mar,2012. But, the overall results for FY 12 do not show improvement over preceding 2 years.

QUARTERLY RESULTS REVIEW

Interest on Advances stands at  Rs.1646.88 Cr in Q4 FY 12; compared to Rs.1569.88 Cr in Q3 FY 12 (Up by 4.9%); and compared to Rs.1176.93 Cr in Q4 FY 11 (Up by 39.93%).

Income on Investments  stands at  Rs.491.35 Cr in Q4 FY 12; compared to Rs.476.02 Cr in Q3 FY 12 (Up by 3.22%); and compared to Rs.426.09 Cr in Q4 FY 11 (Up by       15.32%).

Interest Earned stands at  Rs.2152.23 Cr in Q4 FY 12; compared to Rs.2058.26 Cr in Q3 FY 12 (Up by 4.57%); and compared to Rs.1608.78 Cr in Q4 FY 11 (Up by 33.78%).

Other Income stands at  Rs.138.13 Cr in Q4 FY 12; compared to Rs.115.66 Cr in Q3 FY 12 (Up by 19.43%); and compared to Rs.142.88 Cr in Q4 FY 11 (down by -3.32%).

Total Income  stands at  Rs.2290.36 Cr in Q4 FY 12; compared to Rs.2173.92 Cr in Q3 FY 12 (Up by 5.36%); and compared to Rs.1751.66 Cr in Q4 FY 11 (Up by 30.75%).The improvement  in Total Income at 30.75% YoY is quite impressive.

Interest Expended stands at  Rs.1659.68 Cr in Q4 FY 12; compared to Rs.1583.66 Cr in Q3 FY 12 (Up by 4.8%); and compared to Rs.1130.44 Cr in Q4 FY 11 (Up by 46.82%). Interest expended increase at 47% YoY is much higher than the increase in Interest earned at 34%.

Net Interest Income   stands at  Rs.492.55 Cr in Q4 FY 12; compared to Rs.474.60 Cr in Q3 FY 12 (Up by 3.78%); and compared to Rs.478.34 Cr in Q4 FY 11 (Up by 2.97%).  The increase in NII is minimal. With RBI relaxing Interest Rates, the NII is likely to improve in Q1 FY 13 onwards.

Total Expenditure (Excl.provisions) stands at  Rs.2026.88 Cr in Q4 FY 12; compared to Rs.1872.18 Cr in Q3 FY 12 (Up by 8.26%); and compared to Rs.1641.70 Cr in Q4 FY 11 (Up by 23.46%).Compared to Increase in Expenditure at 23.46% YoY, the increase in Income at 30.75% is quite impressive.

Operating Profit stands at  Rs.263.48 Cr in Q4 FY 12; compared to Rs.301.74 Cr in Q3 FY 12 (down by -12.68%); and compared to Rs.109.96 Cr in Q4 FY 11 (Up by 139.61%).The increase  in operating Profit YoY is excellent.

Provisions stands at  Rs.86.83 Cr in Q4 FY 12; compared to Rs.167.24 Cr in Q3 FY 12 (down by      -48.08%); and compared to Rs.85.73 Cr in Q4 FY 11 (Up by 1.28%). Provisions are at same level as last year, but considerably down from previous quarter.

Profit  before tax stands at  Rs.176.65 Cr in Q4 FY 12; compared to Rs.134.50 Cr in Q3 FY 12 (Up by 31.34%); and compared to Rs.24.23 Cr in Q4 FY 11 (Up by 629.05%).

Tax Expense stands at  Rs(-)4.32 Cr in Q4 FY 12; compared to Rs.10.23 Cr in Q3 FY 12 ; and compared to Rs(-)30.00 Cr in Q4 FY 11.

Net Profit  stands at  Rs.180.97 Cr in Q4 FY 12; compared to Rs.124.27 Cr in Q3 FY 12 (Up by 45.63%); and compared to Rs.54.23 Cr in Q4 FY 11 (Up by     233.71%). The improvement in Net Profit YoY is quite impressive.

Face Value is Rs.10; Paid-up Equity is Rs.495.54 Cr.

Capital Adequacy Ratio stands at  10.96%.

Basic EPS stands at  Rs.2.98 compared to Rs.2.63 in Q3 FY 12 and Rs.0.65 in Q4 FY 12.The FY 2012 EPS is Rs.9.49.

Current MP is Rs.57.30; while the 52 week high price is Rs.83.75 and 52 week low price  is Rs.43.80.

On this Basis, the PE Ratio works out to 6.04.If the upward momentum in EPS in Q4 continues further, FY 13 could yield an EPS upwards of Rs.12 which will yield a forward PE of  4.78.

% of Gross/Net NPA stands at  1.72% compared to 1.81% in Q3 FY 12 and Rs.1.52%

Return on Assets stands at  0.78% in Q4 FY 12; compared to 0.55% in Q3 FY 12 and 0.28% in Q4 FY 11.The improvement in return on assets

ANNUAL RESULTS REVIEW

FY 2012 vs 2011 vs 2010

Interest on Advances in FY 12 stands at Rs.6050.09 Cr; compared to Rs.4191.90 Cr (up by 44.33%) in FY 11; and compared to Rs.3838.51 Cr ( up by 57.62%) in FY 10.

Income on Investments  in FY 12 stands at Rs.1872.04 Cr; compared to Rs.1611.01 Cr (up by 16.20%) in FY 11; and compared to Rs.1281.83 Cr ( up by           46.04%) in FY 10.

Interest Earned  in FY 12 stands at Rs.7988.12 Cr; compared to Rs.5844.06 Cr (up by 36.69%) in FY 11; and compared to Rs.5200.65 Cr ( up by      53.6%) in FY 10.

Total Income in FY 12 stands at Rs.8516.02 Cr; compared to Rs.6377.24 Cr (up by 33.54%) in FY 11; and compared to Rs.5880.10  Cr ( up by 44.83%) in FY 10.

Interest Expended in FY 12 stands at Rs.6084.59 Cr; compared to Rs.3897.29 Cr (up by 56.12%) in FY 11; and compared to Rs.3751.57 Cr ( up by 62.19%) in FY 10.

Net Interest Income in FY 12 stands at Rs.1903.53 Cr; compared to Rs.1946.77 Cr (Down by -2.22%) in FY 11; and compared to Rs.1449.08 Cr ( up by 31.36%) in FY 10. While there is marginal reduction in NII compared to previous year of FY 11; there is a significant increase of 31.36% over FY 10.

Total Expenditure in FY 12 stands at Rs.7285.55 Cr; compared to Rs.5330.57 Cr (up by  36.67%) in FY 11; and compared to Rs.4823.14 Cr ( up by 51.05%) in FY 10. Increase in expenditure  is marginally higher than increase in Income.

Operating Profit  in FY 12 stands at Rs.1230.47 Cr; compared to Rs.1046.67 Cr (up by 17.56%) in FY 11; and compared to Rs.1056.96 Cr ( up by      16.42%) in FY 10.

Provisions in FY 12 stands at Rs.581.23 Cr; compared to Rs.362.85 Cr (up by 60.18%) in FY 11; and compared to Rs.355.82 Cr ( up by 63.35%) in FY 10. Provisions have increased considerably over the last 2 years.

Profit before tax in FY 12 stands at Rs.649.24 Cr; compared to Rs.683.82 Cr (down by   -5.06%) in FY 11; and compared to Rs.701.14 Cr ( down by -7.4%) in FY 10. As can be seen from the above, while OPT has increased marginally over the 2 p[receding years, there is a decrease in PBT over these years – due to higher provisions.

Tax Expense in FY 12 stands at Rs.68.25 Cr; compared to Rs.160 Cr (down by      -57.34%) in FY 11; and compared to Rs.193.85 Cr ( down by -64.79%) in FY 10.

Net Profit in FY 12 stands at Rs.580.99 Cr; compared to Rs.523.82 Cr (up by 10.91%) in FY 11; and compared to Rs.507.29 Cr ( up by 14.53%) in FY 10. While PBT was down compared to 2 preceding years, NPT is marginally up , mainly due to less Tax Expense.

Reserves  in FY 12 stands at Rs.3279.15 Cr; compared to Rs.2850.50 Cr (up by 15.04%) in FY 11; and compared to Rs.1884.55 Cr ( up by 74%) in FY 10. There is a Healthy increase in Reserves over the years.

Capital Adequacy Ratio  Stands at 10.96% in FY 12; compared to 12.59% in FY 11; and  11.79% in FY 10. CAR is down but reasonable. Government is periodically enhancing the capital. The same can be expected in current year as well.

Basic EPS in FY 12 stands at Rs.9.49 in FY 12; compared to Rs.9.89 in FY 11; and Rs.11.7 in FY 10. There is a marginal reduction in EPS over the years.

Gross/Net NPA in FY 12 stands at Rs.998.01; compared to Rs.741.16 cr in FY 11 (Up 34.66%); and compared to Rs.581.56 Cr in FY 10 (Up 71.61%). NPAs are increasing over the years.

% of Gross/Net NPA in FY 12 stands at 1.72%; compared to 1.52% in FY 11; and 1.4% in FY 10. In percentage terms also, the increase in NPAs is considerable, though not alarming.

Return on Assets in FY 12 stands at 0.66% in FY 12; 0.72% in FY 11; 0.76% in FY 10.ROA is down over the 2 years.

Public Shareholding in FY 12 stands at 44.98%.

Thus, while Q4 FY 12 performance shows good improvement over previous quarters, the comparison of FY 12 with 2 preceding years is not  commendable. The increase in expenditure needs control and the NPAs need to come down.

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