AU Small Finance Bank's Financial Performance for March 2024 Quarter: Mixed Results with Positive and Negative Aspects

AU Small Finance Bank, a largecap private bank, recently announced its financial results for the quarter ending March 2024. According to MarketsMOJO, the stock call for AU Small Finance is 'Sell'.

The bank's financial performance for the quarter has remained flat, with a slight improvement in its score from -5 to -2 in the last 3 months. However, there are some positive aspects to the bank's performance based on its March 2024 financials.

One of the key highlights is the bank's net interest income, which has been consistently growing each quarter in the last five quarters and reached its highest at Rs 1,337.03 crore. This indicates that the bank's income from its core business is on the rise. Additionally, the interest earned by the bank has also shown a positive trend, with a growth of 24.38% year on year.

On the other hand, there are some areas where AU Small Finance has not performed well in the March 2024 quarter. The profit before tax less other income has fallen by -151.16% year on year, indicating a negative trend in the near term. The operating profit has also decreased each quarter in the last five quarters, and the operating profit margin has reached its lowest at 3.84%. This suggests a decline in the bank's efficiency.

Furthermore, the profit after tax has also shown a negative trend, with a fall of -12.7% year on year. The non-operating income, which is 122.16% of the profit before tax, is a cause for concern as it indicates a high reliance on non-business activities for income. The earnings per share have also decreased, indicating a decline in profitability and lower earnings for shareholders.

It is worth noting that the non-operating income has reached its highest at Rs 555.62 crore in the last five quarters, but this may not be a sustainable business model for the bank.

Overall, AU Small Finance Bank's financial performance for the March 2024 quarter has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.