HDFC BANK Announces Quarterly Results (2QFY19); Net Profit Up 20.6%

Tue, 23 Oct

HDFC BANK has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

HDFC BANK Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-17*	3 Jun-18*	3 Sep-18*	QoQ Change	YoY Change
Operating income	Rs m	196,703	225,490	241,996	7.3%	23.0%
Other income	Rs m	36,059	38,181	40,156	5.2%	11.4%
Total revenues	Rs m	232,762	263,670	282,152	7.0%	21.2%
Interest	Rs m	99,182	117,354	124,362	6.0%	25.4%
Gross Profit	Rs m	97,521	108,136	117,634	8.8%	20.6%
Other expenses	Rs m	55,401	59,839	62,991	5.3%	13.7%
Profit before tax	Rs m	63,417	70,184	76,600	9.1%	20.8%
Tax	Rs m	21,907	24,169	26,543	9.8%	21.2%
Profit after tax	Rs m	41,510	46,014	50,057	8.8%	20.6%
Gross profit margin	%	49.6	48.0	48.6
Effective tax rate	%	34.5	34.4	34.7
Net profit margin	%	21.1	20.4	20.7

Year-on-Year Performance:

• The bank's operating income (interest earned) during the quarter grew 23.0% on a year-on-year (YoY) basis. The interest expended was up by 25.4% YoY during the same period.
• The bank's operating profit increased by 20.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 48.6% in 2QFY19 as against 49.6% in 2QFY18.
• Other income increased by 11.4% YoY during the quarter.
• Net profit for the quarter increased by 20.6% YoY. Net profit margins during the quarter declined from 21.1% in 2QFY18 to 20.7% in 2QFY19.

Quarter-on-Quarter Performance:

• The bank's operating income (interest earned) during the quarter grew 7.3% on a quarter-on-quarter (QoQ) basis. The interest expended was up by 6.0% QoQ during the same period.
• The bank's operating profit increased by 8.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 48.6% in 2QFY19 as against 48.0% in 1QFY18.
• Net profit for the quarter increased by 8.8% QoQ, while net profit margins increased from 20.4% in 1QFY18 to 20.7% in 2QFY19.

To see how HDFC BANK has performed over the last eight quarters, please visit here.

HDFC BANK Share Price Performance

Over the last one year, HDFC BANK share price has moved up from Rs 1,862.7 to Rs 1,990.0, registering a Gain of Rs 127.4 or around 6.8%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 27,989.3 (up 0.0%). Over the last one year it has moved up from 26,887.3 to 27,989.3, a gain of 1,102 points (up 4.1%).

Overall, the S&P BSE SENSEX is up 4.6% over the year.

Current Valuations

At the current price of Rs 1,990.0, the price to earnings (P/E) ratio of HDFC BANK stands at 27.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.6 times.