Conference Call between Cigniti Technologies Management and Analysts on Q4FY20 earnings and outlook. Listen in to the full earnings transcript.
Conference Call with HCL Technologies Management and Analysts on Q4FY20 and Full Year Earnings and Outlook. Listen in to the full earnings transcript.
Opening Remarks of Earnings Call between Cyient Limited Management and Analysts. Listen in to the full transcript.
Transcript of Conference Call between RBL Bank Management and Analysts on Q4FY20 and Full Year Earnings and Outlook. Listen in to the full earnings transcript.
Call Participants: Mr. Vishwavir Ahuja - Managing Director & Chief Executive Officer
Introductory Remarks from Vishwavir Ahuja
Good Evening ladies and gentlemen and thank you for joining us for the discussion on RBL Bank’s result of the fourth quarter and financial year 2020. I would request you to bear with us as this is going to be a slightly longer presentation than usual as we would like to go over important arrears and balance sheets.
This is an unprecedented time we are living in as the pandemic continues to impact countries and economies even as we speak. Government, regulators and policy makers have taken a number of economic measures to try and alleviate the impact. The size and scale of the challenge ahead leads us to believe that even India will see a prolonged impact on the economy.
In this background, we continue to be very cautious, conservative and focused on preservation of the franchise. The overriding emphasis at RBL Bank shall be on balance sheet protection and we will therefore continue to tighten this filter further to manage and preserve credit quality, maintain liquidity and conserve capital and remain well capitalised throughout.
Given the macro economic situation prevailing pre-covid, a great deal of this is already accomplished. But the current environment has made it all the more important. Before we get into details, I want to take a brief moment to record our sincere appreciation and gratitude to all our employees. Over the last month and more, these employees have been working tirelessly and ensuring that there is a minimal impact on the customers and our operations.
Primary focus has been on taking care of the employees health and safety on the employees as only then can they effectively serve the customers and the community. The bank was proactive in setting up a response team to handle the entire Covid situation. This has immensely helped us over the last few weeks to run our operations relatively and seriously. All our essential businesses and business requirements are being fully met during this lockdown by enabling work from home for the critical staff.
95% of ATMs in non-containment areas are working without any disruptions or cash outages. 98% of our overall branch networks have been operational during the nationwide lockdown. We have beefed up our information security and cyber security risk measures to mitigate potential risks and threats during this period.
Before I discuss details of the financials, I would like to discuss the Covid-19 and likely impact in FY21. I thought it useful to lay out at a little higher level how we are seeing this period in the longer traction phase, we had embarked upon in July 2019. In some manner, what would the bank be when Covid is substantially addressed. Thus, we have acknowledged that some concentration issues in our wholesale businesses would be progressly addressed.
Now, we will quickly talk about the Covid related moratorium under the RBI guidelines. Please note that the data is as of April 30, 2020. In micro banking, our collection for March was completed before the lockdown. In retail, which is 22% of our advances, while we offered it to all, 46% of the customers have availed the moratorium. On the wholesale side, which is 44% of advances, about 22% of the customers have taken the moratorium. In respect of these wholesale clients who ask for the moratorium, we have assessed their business requirements, discussed the impacts and implications of opting for the moratorium and we give it to the customers on the condition that all their other lenders also give them the moratorium.
We have proactively taken some covid related provisions on the retail portfolio which we will discuss later. We have also undertaken the thorough report of covid under various scenarios. In the training costs and estimations, our base assumption is of an extended lockdown until early June and for lives to go back to normal in a gradual manner thereafter.
Performance highlights of Q4 and the Full Year FY20
Advances grew 7% YoY, declined 3% sequentially from the previous quarter
Retail wholesale advances mix was 56% and 44% respectively
Our wholesale business declined 16% YoY, 13% sequentially, reflecting the planned portfolio redesign
Non-wholesale business continued to grow 35% YoY and 7% sequentially
Deposits overall marginally declined to 1% YoY. However, based on the muted asset growth and the capital raise in December 2019, the bank maintained surplus liquidity throughout the full year
Our average NCR for the full year was 154% and for Q4 itself was 161%
As we reported previously, there were some declines in deposit in March because of specific circumstances prevailing that month. However, we are pleased to report that all deposit segments are now stable and growing and our deposit position as of April 30th crossed Rs 60,300 crores, which is up 4% from March 31st, 2020
CASA deposits grew 17% YoY and 2% QoQ. CASA percentage was 29.6% as on Q4FY20. This is against 26.8% previous quarter and 25% for the same period, last year
Pertinent to note that CASA grew sequentially in Q4 2020. CASA ratio as of April 30th on a higher deposit base is approximately 31%
Our cost of deposits stands 31 basis points to 6.4% sequentially in this quarter
Our gross expansion continued with 62 branches in FY20, largely in metro and urban centers. We were actually on track to end the year with 400+ branches but for the lockdown, ended the year at 383 branches. In addition, we ended the year with 1,245 BC branches of which 651 branches were of RBL Finserve subsidiary
Revenue growth momentum was strong through the year growing even into the fourth quarter. Fourth quarter, total revenue grew 8% sequentially to Rs 1,522 crores for the quarter and for the full year, the revenue was Rs 5,540 crores which reflects a growth of 39% YoY.
Transcript of Conference Call between Novelis Inc Management and Analysts on Q4FY20 and Full Year performance. Listen to the full earnings transcript.
Steve Fisher, President and CEO
We saw record adjusted EBITDA performance for the fourth consecutive year $1.5 bn in EBITDA in FY2020. Driven by our consistent strategy and operation and broadly favorable demand for aluminum solutions across our market. We were also further improving fiscal fundamentals and efficient operations.
We ended the year with good liquidity, including a successful $400 million fundraise in january. We have also focused on sustainability by focusing on growth and becoming the leading producer of flat rolled aluminum product and the largest recycler.
In FY20 the proportion of recycled content in our product is 60%, a significant increase from 40% in previous years. We are also optimizing our product portfolio, entering higher value segments. In FY20 cans represented 66% of our shipments, providing a resilient backstop for us. Cans are more recessionary-resistant compared to other products and a strong cash generators. We have also diversified into high value aerospace and expanded specialty capabilities.
We have added new automative finishing lines in US and China, adding 300 kilotons of additional automotive finishing capacity as well as the rolling and recycling expansion underway in our plants and Brazil. Commissioning in Brazil expected to start in FY22, we will slow the commissioning of adding capacity in China. Many new launches have been delayed due to COVID related shutdowns. We are prepared to ramp up in case customer demand accelerates.
We have partly shutdown some plants across regions due to customer demand slowing or government mandated lockdowns. We are actively controlling costs in the meantime. We are targeting approximately $250 million in cost reductions in operating costs and R&D and are ready to take more action as needed, depending on demand. We have reduced capex spend by $100 million compared to last year. We are in good shape in terms of liquidity, ending the fiscal year with $2.6 billion.
We are working closely with customers to adjust production based on their forecasts. Beverage cans: this is relatively a recession-resistant product, and we expect this to be the case in North America and Europe. Trade restrictions are limiting our ability to export our products from South Korea and Asia to other markets.
The automative industry took a significant hit from the pandemic related slowdown. Unemployment rising and lockdowns mean automative players are not selling vehicles at expected levels. We expect these players to restart production this month. In China we followed lockdown orders in February with some production resuming in March. We see some resumption in demand now happening in Europe and elsewhere. It is unclear however how a global recession will impact near-term demand recovery.
In aerospace we are seeing significant reduced production as consumer travel is expected to be lower into the next year. Our long term outlook, strong financial profile and product mix will help us weather the storm.
Novelis acquisition of Aleris was completed in April 14, 2020. It's an exciting strategic acquisition that will drive many long term benefits for our customers and industry. We have acquired a strategic set of assets and workforce. It has helped us be competitive in the aerospace industry, one of the most technically demanding, and will enhance our existing operations in Asia.
Conference Call between JM Financial Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen in to the full earnings transcript.
Call Participants: Mr. Vishal Kampani - Group Managing Director, Mr. Manish Sheth - Group Chief Financial Officer, Mr. Subodh Shinkar - MD & CEO, Mr. Shashwat Belapurkar - MD & CEO, Anil Bhatia - MD & CEO, Gitanjali Mirchandani - Managing Director & Country Head, Mrs. Sonia Das Gupta - MD, Mr. Ajay Mishra - Executive Director
Introductory Remarks from Vishal Kampani
On behalf of JM Financial, we extend a very warm welcome to all of you to the conference call to discuss our financial results both for the fourth quarter and full 2019-2020. I hope most of you had a chance to go through the presentation, our press release as well as our results. We have updated them on our website and also the stock exchanges. I shall now provide an update on the performance of our businesses.
Our consolidated revenue for FY20 stood at Rs 2,453.55 crores. It is a small decline of 1.3% YoY.
Profit After Tax for the full year FY20 valued at Rs 545 crore, a decrease of approximately 5% YoY
During the uncertainties around Covid-19, we have taken additional provisions across the group to the tune of Rs 175 crores over the last quarter
Our adjusted FY20 PAT without the pre-Covid impact after minority interest was at Rs 621 crores for FY20 and Rs 206.6 crore for the fourth quarter FY20
With that, I will move on to the loan book detail - Our consolidate loan book stood at Rs 11,041 crores, down 18.3% YoY
The breakup of the loan book is as follows: Wholesale mortgages continue to be the largest part of the book and constitutes 70% of our loan book which is approximately Rs 8,000 crores. The wholesale mortgages book registered a YoY degrowth of 20.5% and this has been a conscious strategy for the group
The capital market loan book constitutes 4% of the loan book which is approximately Rs 465 crores. This book has registered a YoY degrowth of 56.8%
The corporate lending loan book which also includes promoter lending constitutes 20% of our loan book which is at Rs 2,272 crore and which is largely flat from last year
The retail mortgages loan book constitutes now 6% of our loan book at roughly Rs 760 crores and the book has registered YoY growth of 28%. This loan book comprises largely of housing finance and our education institutional lending business and also a cost sell of loan against property to our wealth management
Moving on to asset quality, the gross NPA ratio of lending businesses is at 1.65% and net NPA is at 1.13% and the SMA2 stands at 2.64% as of March 31st, 2020
Few comments on liabilities and leverage - On a consolidated basis, our gross debt to equity stands at 1.47 times as of March 31st, 2020 and on a net basis at 1.04 times as of March 31st, 2020
During the full year FY20, we raised approximately Rs 640 crores through public issue of NCDs which has helped us diversify our industry base
As of March 31st, 2020, our borrowing mix comprised of 91% of borrowings from long-term sources and 29% from short term sources. This is compared to 84% from long term sources and 16% from short term sources as of December 31st, 2019
We feel very comfortable with this current position. Infact, we see extraordinarily comfortable having excellent long term borrowing mix currently
For FY20, Investment Banking, Wealth Management and Securities business (IWS) posted revenues of Rs 1611 crore with a profit before tax of Rs 434.6 crores. The business contributed 40% of our growth for FY20. The profit after tax from this segment increased to Rs 311.26 crores for FY20 compared to Rs 239.6 crores for FY19
The AUM/AUA of our wealth management business stood at Rs. 44,883 crore (excluding custody assets) as on March 31, 2020 as compared to Rs. 41,886 Cr as on March 31, 2019 and Rs. 46,886 Cr as on December 31, 2019
The equity component as of March 31st, declined 17.7% YoY. Last part of the decline on March 31st was because of the value of the assets coming down due to the drop in the stock market because of the Covid-19 crisis. The loan book for this segment stood at Rs 3,880 crores which is a decrease of 31.1%. As of FY20, the gross debt to equity for the IWS segment stood at 1.54x and the net debt to equity stood at 0.8x. We are in a extremely cash rich position in the IWS segment and we will look to gain more market share over the next 12 months in these businesses
Moving on to the mortgage lending business - For FY20 this segment had revenues of Rs 1,350 crore with a profit before tax of Rs 543 crores. Profit after tax for this segment stood at Rs 178.6 crores. Our loan book stands at Rs 7,641 crore which is a decrease of 8.1% YoY. The wholesale loan book has decreased as the lower strategic decision we had taken post IFLS and our retail mortgage book has increased because of the strategic decision we had taken 18 months ago
We had some significant recoveries in the distress credit business in the last 12 months and despite an extremely challenging environment, we have managed to have a significant amount of resolution and we hope that we are able to keep up that stream over the next two years despite the crisis we are facing with the current Covid crisis
Moving on to the asset management business which comprises our mutual fund business had revenues of Rs 63 crores with a PBT of Rs 22.5 crores. PAT from this segment de-grew to Rs 10.2 crores for FY20
Group results from Manish Sheth:
Good evening everyone! As usual, before I present the financials, I would like to bring to your notice that any forward looking statements made on this call are based on management’s current expectations. However, the actual results may vary significantly and therefore the accuracy and completeness of this expectation cannot be guaranteed.
In Q4FY20, our revenue grew by 6.12% YoY to Rs 840 crores from Rs 792 crores
The Q4FY20 profit before tax is at Rs 215 crore which is a decline of 12% YoY but Profit after tax increased by 1.49% YoY from Rs 128 crore to Rs 130.56 crore
With regard to the full year numbers, for FY20, the gross revenue is Rs 3,453 crore and our net consolidated profit is Rs 544.98 crore. This represents an EPS of 6.48 versus 6.82 for the same period, last year
As of March 31, 2020, the net worth is at Rs 5,586 crore which is a book value of Rs 66.41 per share
The group finance cost has decreased to Rs 1,385 crore in FY20 as against Rs 1,446 crores during the same period last year, primarily on account of decrease in the borrowings
Our cost of funds for the lending business stood at 10% compared to 9.2% YoY, primarily due to increase in borrowings cost and also due to change in the borrowing mix
Retail business for the short-term and mid-term will suffer. I am bullish in long term for retail but very negative for the short-term. I think you will see bankruptcies going high in the month of September, this year.
Conference Call between Solara Active Pharma Management and Analysts on Q4FY20 earnings performance and full year, with discussions on outlook. Listen in to the full earnings transcript.
