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.

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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.