Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
PNB Gilts: Debt market play - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 29, 2001

    PNB Gilts: Debt market play

    With a healthy debt market environment, PNB Gilts has reported a fantastic performance in the first half of the current year. However, on a QoQ basis, the company's net profits have declined by 43% in 2QFY02.

    (Rs m) 1QFY02 2QFY02 Change 1HFY01 1HFY02 Change
    Interest Income 618 417 -32.6% 339 1,035 205.3%
    Other Income 3 4 38.0% 18 8 -57.5%
    Interest Expenditure 159 142 -10.5% 731 300 -58.9%
    Operating Profit (EBDIT) 460 275 -40.2% (392) 735 -
    Operating Profit Margin (%) 74.4% 65.9%   - 71.0%  
    Other Expenditure 11 18 53.5% 15 29 89.0%
    Profit before Tax 452 262 -42.1% -390 713 -
    Depreciation 1 2 91.0% 2 3 38.3%
    Tax 161 94 -41.9% 0 255 -
    Profit after Tax/(Loss) 290 166 -42.6% (392) 456 -
    Net profit margin (%) 46.8% 39.9%   - 44.1%  
    No. of Shares (eoy) 135 135   135 135  
    Diluted Earnings per share* 8.6 4.9   -5.8 6.8  
    P/E (at current price)   3.5     2.5  

    Volatility in the debt markets has affected the company's turnover in the second quarter. As a result interest income have declined by 33%, QoQ. On a YoY basis the company's financials are not comparable due to a dramatic change in interest rates in the past one year (PNB Gilts' performance is fully dependent on interest rate change, which affects the G-Sec prices).

    During the first half, the company reported a turnover of Rs 502 bn as compared to Rs 333 bn as on March '01. It also gained market share by 300 basis points in the last six months to 8%. PNB Gilts trades aggressively in the debt market, which has enabled it to improve its turnover in the last six months. Also its initiatives to focus on retail segment of the market, which is yet to take-off, is likely to increase its market share further in the coming quarters.

    The company's tax provision increased substantially due to adjustment for deferred tax liability according to Accounting Standard-22. It has however not given separate figures for the same.

    At the current market price of Rs 17, PNB Gilts is trading at a P/E of 3x 1HFY02 annualised earnings and Price/Book value ratio of 0.7x. The company has declared an interim dividend of 10% and assuming that it will maintain the rate for full year, the dividend yield works out to 11.8%.



    Equitymaster requests your view! Post a comment on "PNB Gilts: Debt market play". Click here!


    More Views on News

    HDFC: Red Flag in Developer Loans (Quarterly Results Update - Detailed)

    Aug 10, 2017

    HDFC starts FY18 on robust loan growth but asset quality slips on increased exposure to developer loans.

    Shriram Trans Fin: FY17 Ends on a Tepid Note due to Regulatory Headwinds (Quarterly Results Update - Detailed)

    Jun 22, 2017

    Demonetisation led slowdown coupled with shift to stringent bad loan norms keep Shriram Transport Finance on a slow wicket.

    Power Finance Corp: Alignment with RBI Norms Knocks Down FY17 Earnings (Quarterly Results Update - Detailed)

    Jun 14, 2017

    Power Finance Corporation earnings hit by RBI mandated higher provision on state government power generation projects where the recovery continues to be 100%.

    IDFC: Ends FY17 on a Healthy Note (Quarterly Results Update - Detailed)

    May 30, 2017

    IDFC regains its tempo in FY17 post the demerger of the banking business.

    HDFC: Conservative Provisioning tempers down FY17 earnings (Quarterly Results Update - Detailed)

    May 9, 2017

    HDFC ends FY17 on a tepid note as it remains conservative on the asset quality front.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 16, 2017 (Close)


    • Track your investment in PNB GILTS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Detailed Quarterly Results With Charts