Banking stocks are trading weak with led by Axis Bank and Yes Bank. Axis Bank declared results for the first quarter of financial year 2011-2012 (1QFY12). The bank's net interest income grew by 14% and net profits by 27%. Net interest margins fell from 3.7% to 3.3% because of higher cost of funds. The CASA base reduced on account of higher term deposit rates and people preferring fixed deposits instead of current/ savings accounts. The company's network expanded during the quarter and it now has 1,411 branches along with 6,871 ATMs (Automated Teller Machines) across 932 cities. Axis's net NPA as a percentage of advances remained stable at 0.3%, while the Gross NPAs were at 1% at the end of the first quarter.
FMCG stocks are trading firm led by Paper Products and Archies Limited. Godrej Consumer Products Limited released its 1QFY12 results. The company's consolidated top line grew by 39.2% YoY during the quarter. This came on the back of strong performance by Godrej's domestic business and international business. The company's domestic business grew by 21% YoY aided by 17% YoY growth in domestic soap segment, 19% YoY growth in hair colorant segment and 40% YoY growth in household insecticide segment. International business, which contributes 36% of sales, grew by 93% YoY. Operating margins fell by 3.8% during the quarter. This fall was due to a sharp increase in staff costs, advertisement expense and other expenditure. Staff costs increased by 63% YoY, while advertisement expenses grew by 58% YoY. Other expenditure came in higher by 52% YoY. Net profit grew by 94.2% YoY. This was due to onetime compensation received during the quarter for exit from the Kiwi brand.