KOTAK MAHINDRA BANK Announces Quarterly Results (3QFY20); Net Profit Up 28.9%

Tue, 21 Jan

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

KOTAK MAHINDRA 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	77,446	84,188	83,320	-1.0%	7.6%
Other income	Rs m	36,028	41,242	52,105	26.3%	44.6%
Total revenues	Rs m	113,474	125,430	135,424	8.0%	19.3%
Interest	Rs m	39,405	40,543	38,904	-4.0%	-1.3%
Gross Profit	Rs m	38,041	43,644	44,416	1.8%	16.8%
Other expenses	Rs m	46,985	50,709	62,900	24.0%	33.9%
Profit before tax	Rs m	27,193	29,529	29,089	-1.5%	7.0%
Tax	Rs m	8,965	5,456	5,601	2.7%	-37.5%
Profit after tax	Rs m	18,228	24,073	23,487	-2.4%	28.9%
Gross profit margin	%	49.1	51.8	53.3
Effective tax rate	%	33.0	18.5	19.3
Net profit margin	%	23.5	28.6	28.2

Year-on-Year Performance:

• The bank's operating income (interest earned) during the quarter grew 7.6% on a year-on-year (YoY) basis. The interest expended was down by 1.3% YoY during the same period.
• The bank's operating profit increased by 16.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 53.3% in 3QFY20 as against 49.1% in 3QFY19.
• Other income increased by 44.6% YoY during the quarter.
• Net profit for the quarter increased by 28.9% YoY. Net profit margins during the quarter increased from 23.5% in 3QFY19 to 28.2% in 3QFY20.

Quarter-on-Quarter Performance:

• The bank's operating income (interest earned) during the quarter fell 1.0% on a quarter-on-quarter (QoQ) basis. The interest expended was down by 4.0% QoQ during the same period.
• The bank's operating profit increased by 1.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 53.3% in 3QFY20 as against 51.8% in 2QFY19.
• Net profit for the quarter declined by 2.4% QoQ, while net profit margins declined from 28.6% in 2QFY19 to 28.2% in 3QFY20.

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

EXPLORE: Here's How You Can Get 1 YEAR of Our Proven Smallcap Service for FREE...

KOTAK MAHINDRA BANK Share Price Performance

Over the last one year,KOTAK MAHINDRA BANK share price has moved up from Rs 1,267.3 to Rs 1,606.8, registering a Gain of Rs 339.5 or around 26.8%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 35,440.3 (down 0.0%). Over the last one year it has moved up from 30,770.4 to 35,440.3, a gain of 4,670 points (up 15.2%).

Overall, the S&P BSE SENSEX is up 13.4% over the year.

Current Valuations

At the current price of Rs 1,606.8, the price to earnings (P/E) ratio of KOTAK MAHINDRA BANK stands at 34.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.1 times.