Earnings

SBI Cards reported their Q4 FY23 earnings this past Friday - our update today highlights three interesting trends from the Q4'23 earnings across OpEx, Credit costs and Funding costs.

Q3'23 earnings, and this quarter, like the last one, has been solid. Net interest margins (NIMs) - the spreads between lending yields and cost of funds - have gone up across the board.

Paytm released their Q3 FY23 results, and the big news was that the company hit EBITDA (pre-ESOP cost) breakeven 3 quarters ahead of guidance! This week's analysis looks at the sustainability of these breakeven levels.

SBI Cards reported their Q3 FY23 earnings on 24th Jan - while it trades at a 7x book value multiple, it is down ~20% over the past year. While the business continues to see deteriorating profitability in Q3, we've unpacked a number of interesting take-aways.

A few days ago, the one-year lock in period on ~86% of outstanding Paytm shares expired - and this has caused the stock to drop to an all-time low. Paytm is down ~70% since its IPO and the company is now worth just Rs 30000 crores.

SBI card reported its Q2FY23 earnings recently - with a borrowing cost of ~5.5%, revenue yields between 35-40% and ROEs between 25-30%, the stock trades at 8-9x book value! With YoY profit growth of 52% & ROE of 24.1%, the business appears to have delivered healthy numbers - but not all is rosy.

Q2 FY23 earnings season is here, and similar to last quarter, banks continue to report strong earnings growth.

Key highlights from Bank Q1 FY23 earnings - most banks reported strong net profit growth aided by lower provisions. However, several saw a contraction in their PPOP and some banks are taking a bet on unsecured retail.

Paytm released its Q4 earnings late last month - the company's 2nd quarterly earnings release since going public in November last year. Paytm ended the year with strong numbers - revenue grew to ~5K crores (YoY growth of 77%).

Our update this week covers Q4 FY22 earnings for SBI cards. Given the entity is the the only publicly listed pure-play credit card player, SBI Card earnings are potentially the best way to get a closer look at the Indian credit cards space.

All 4 listed AMC stocks have under-performed the broader market over the last 2 years. What makes this interesting is the fact that this has happened in a period when overall mutual fund inflows have increased by ~60% and equity fund inflows have almost doubled!

Q4 2022 earnings season is here, and we're back with our quarterly ZCharts earnings dashboards. Most banks have reported strong growth in profitability this quarter - some of the larger banks like Canara, Kotak, ICICI and Axis have delivered YoY profit growth north of 50%!

A lot is going on in the MF space in India - firstly, MF penetration has massively increased in the last year (most of it driven by equity MFs). Secondly, the profile of the new MF investors is very different.

We've taken a closer look at the SBI Cards Q3 FY2022 earnings - our story makes it pretty clear why theirs is an extremely profitable and resilient business. Let's dive in!

Q3 FY2022 earnings season is here, and we are back with our quarterly ZCharts earnings dashboards that allow you to access financial services earnings in a single place - in a visual, easy to consume format.