Conference Call with SBI Cards and Payment Services Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company SBI Cards and Payment Services announced Q3FY25 results Total Revenue increased by 1% YoY at Rs 4,767 crore in Q3FY25 v/s Rs 4,742 crore in Q3FY24. PAT decreased by 30% YoY at Rs 383 crore in Q3FY25 v/s Rs 549 crore in Q3FY24. ROAA at 2.4% in Q3FY25 v/s 4.0% in Q3FY24. ROAE at 11.5% in Q3FY25 v/s 19.3% in Q3FY24. Capital Adequacy Ratio at 22.9%; Tier 1 at 17.0% New accounts volume up by 7% at 1, 175K in Q3FY25 v/s 1,096K in Q3FY24. Cards-in-force grew by 10% at 2.02 crore as of Q3FY25 v/s 1.85 crore as of Q3FY24. Retail Spends grew by 10% at Rs 80,792 crore in Q3FY25 v/s Rs 73,519 crore in Q3FY24. Receivables grew by 120/o at Rs 54,773 crore in Q3FY25 v/s Rs 48,850 crore in Q3FY24. Market share for Card-in-force 18.7% (as of Dec'24: 18.9%), Spends 15.6% (for 9M of FY24: 18.3% ). As of Dec'24, #2 for Cards-in-force and #3 for spends, in industry Total income increased by 1 % at Rs 4,767 crore in Q3FY25 v/s Rs 4,742 crore in Q3FY24. This movement was a result of the following key factors: Interest income increased by 15% at Rs 2,399 crore in Q3FY25 v/s Rs 2,082 crore in Q3FY24. Fees and commission income decreased by 13% at Rs 2,220 crore in Q3FY25 v/s Rs 2,539 crore in Q3FY24. Finance costs increased by 19% at Rs 829 crore in Q3FY25 v/s Rs 695 crore in Q3FY24. Total Operating cost decreased by 13% at Rs 2,107 crore in Q3FY25 from Rs 2,426 crore in Q3FY24. Earnings before credit costs increased by 13% at Rs 1,831 crore in Q3FY25 v/s Rs 1,620 crore in Q3FY24. Impairment on financial instruments increased by 49% at Rs 1313 crore in Q3FY25 v/s Rs 883 crore in Q3FY24 Profit after tax decreased by 30% at Rs 383 crore in Q3FY25 v/s Rs 549 crore in Q3FY24. Asset Quality: The Gross non-performing assets were at 3.24% of gross advances as of December 31, 2024, as against 2.64% as of December 31, 2023. Net non-performing assets were at 1.18% as of December 31, 2024, as against 0.96% as of December 31, 2023. Capital Adequacy: As per the capital adequacy norms issued by the RBI, Company's capital to risk ratio consisting of Tier I and Tier II capital should not be less than 15% of its aggregate risk weighted assets on balance sheet and of risk adjusted value of off balance sheet items. As of December 31, 2024, Company's CRAR was 22.9% compared to 18.4% as of December 31, 2023. The Tier I capital in respect of an NBFC-ND-SI, at any point of time, cant be less than 10%. Company's Tier I capital was 17.0% as of December 31, 2024, compared to 16.3% as of December 31, 2023. Result PDF
Asset Management company UTI Asset Management announced Q3FY25 results Financial Highlights Q3FY25: Revenue from operations for the October-December quarter stood at Rs 418 crore, down by 7% YoY and 22% QoQ. The core revenue from operations for Q3 FY2024-25 consisting entirely of sale of services amounted to Rs 375 crore, up by 29% YoY and 1% QoQ. Profit before tax for the third quarter of FY2024-25 was at Rs 221 crore, down by 15% YoY and 34% QoQ. Core Profit before tax was Rs 176 crore for Q3 FY2024-25, up 75% YoY and 4% QoQ. The quarterly profit after tax stood at Rs 151 crore in Q3 FY24-25, down by 19% YoY and 37% QoQ. The core profit after tax for the third quarter (excluding income from investments and other nonoperating income) was Rs 138 crore, up 76% YoY and 5% QoQ. Business Highlights Q3FY25: The total group AUM for UTI Asset Management Company stood at Rs 20,77,125 crore. As on December 31, 2024, UTI MF’s quarterly average assets under management (QAAUM) was Rs 3,52,412 crore. Equity Assets (Ac1ve + Passive) contributed 70% to UTI MF’s total average AUM. The ratio of equity oriented QAAUM and non-equity oriented QAAUM was 70:30 vis-a-vis industry ratio of 61:39. Gross Inflow mobilized through SIP for the quarter ended December 31, 2024, stood at Rs 2,202 crore. SIP AUM as of quarter end stood at Rs 38,366 crore, an increase of 29.36% as compared to December 31, 2023. Total live folios stood at 1.32 crore as on December 31, 2024. Digital purchase transactions rose to 50.97 lakh, an increase of 58% as against quarter ended December 31, 2023. UTI AMC has geographical presence in 699 districts in India, amongst the highest in the industry. Imtaiyazur Rahman, Managing Director & Chief Executive Officer, UTI AMC, said: “UTI AMC has seen a notable uptick in AUM, with the Gross SIP inflows depictng a progressive curve in the last one year. This reflects the trust that our investors have been reposing in the Company. We ended 2024 with the launch of two more index funds that add to our passive product line of innovative investment solutions. To further enhance our reach in far placed investors, we opened 68 new branches in Tier II and III ci es across the country. In the new year 2025, we remain steadfast with our commitment to improve accessibility and keep empowering investors in their wealth creation journey. On the macro front, it will be pertinent to say that investors’ confidence on India’s resilient economy has remained high over the last few years and this confidence along with significant government impetus will lend velocity as we pave way towards being one of the largest economies in the world.” Result PDF
Capital Markets company Motilal Oswal Financial Services announced Q3FY25 results Consolidated operating revenue for Q3FY25 grew by 43% to Rs 1,345 crore. and for 9MFY25 it grew by 41% to Rs 3,850 crore. Consolidated operating PAT for Q3FY25 at Rs 525 crore is up 38% YoY and is up 44% YoY for 9MFY25 at Rs 1,497 crore. Total PAT for Q3FY25 at Rs 456 crore & for 9MFY25 at Rs 2,718 crore grew by 36% YoY for each period. Annual Recurring Revenue (ARR) as % of total revenue grew to 56% in Q3FY25. Fee based revenue to total revenue increased from 30% to 41% on YoY basis. Wealth Management business PAT for Q3FY25 at Rs 190 crore is up 16% YoY. Asset & Private Wealth Management business PAT for Q3FY25 at Rs 234 crore is up 62% YoY. Segment’s contribution to total increased from 37% in Q3FY24 to 45% in Q3FY25. Capital market business PAT for Q3FY25 at Rs.61 crore is up 50% YoY. Housing finance business PAT stands at Rs.36 crore. Robust Net worth of Rs 11,569 crore as of December 31, 2024, up 40% YoY. Our ROE stands at 36% for 9MFY25. Motilal Oswal, MD & CEO said: “The momentum of strong performance continues. Our operating businesses of wealth management, capital market, asset & private wealth management have delivered strong growth in Q3FY25. Operating PAT for the quarter grew by 38% on YoY basis to Rs 525 crore. Strong performance in Asset & Private Wealth Management business led 63% YoY growth in Q3FY25 PAT to Rs 234 crore and the segment’s contribution to total PAT increased from 37% in Q3FY24 to 45% in Q3FY25. India’s financialisation theme has just started and it has many years to go. Motilal Oswal Financial Services is rightly positioned to provide all services & products within the segment to our clients. Based on strong operating profitability, board of directors have decided to distribute interim dividend of Rs 5 per share to our shareholders” Result PDF