KARUR VYSYA BANK Announces Quarterly Results (3QFY20); Net Profit Down 28.9%

Wed, 5 Feb

KARUR VYSYA BANK has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

KARUR VYSYA BANK Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Operating income	Rs m	14,428	15,375	15,038	-2.2%	4.2%
Other income	Rs m	2,599	2,777	2,601	-6.4%	0.1%
Total revenues	Rs m	17,027	18,152	17,638	-2.8%	3.6%
Interest	Rs m	8,619	9,412	9,266	-1.6%	7.5%
Gross Profit	Rs m	5,808	5,963	5,772	-3.2%	-0.6%
Other expenses	Rs m	4,157	4,429	4,525	2.2%	8.9%
Profit before tax	Rs m	246	660	205	-69.0%	-16.8%
Tax	Rs m	34	27	54	103.0%	58.4%
Profit after tax	Rs m	212	633	151	-76.2%	-28.9%
Gross profit margin	%	40.3	38.8	38.4
Effective tax rate	%	13.9	4.0	26.4
Net profit margin	%	1.5	4.1	1.0

Year-on-Year Performance:

• The bank's operating income (interest earned) during the quarter grew 4.2% on a year-on-year (YoY) basis. The interest expended was up by 7.5% YoY during the same period.
• The bank's operating profit declined by 0.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 38.4% in 3QFY20 as against 40.3% in 3QFY19.
• Other income increased by 0.1% YoY during the quarter.
• Net profit for the quarter declined by 28.9% YoY. Net profit margins during the quarter declined from 1.5% in 3QFY19 to 1.0% in 3QFY20.

Quarter-on-Quarter Performance:

• The bank's operating income (interest earned) during the quarter fell 2.2% on a quarter-on-quarter (QoQ) basis. The interest expended was down by 1.6% QoQ during the same period.
• The bank's operating profit declined by 3.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 38.4% in 3QFY20 as against 38.8% in 2QFY19.
• Net profit for the quarter declined by 76.2% QoQ, while net profit margins declined from 4.1% in 2QFY19 to 1.0% in 3QFY20.

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

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KARUR VYSYA BANK Share Price Performance

Over the last one year,KARUR VYSYA BANK share price has moved down from Rs 86.0 to Rs 47.0, registering a Loss of Rs 39.0 or around 45.3%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 35,367.1 (up 0.6%). Over the last one year it has moved up from 30,559.0 to 35,367.1, a gain of 4,808 points (up 15.7%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

Current Valuations

At the current price of Rs 47.0, the price to earnings (P/E) ratio of KARUR VYSYA BANK stands at 13.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.5 times.