Fedbank Financial Services Reports Positive Q2 FY25 Results, But ROE Hits 5-Quarter Low

Return on Equity (ROE) – Quarterly: Lowest at 4.01 % in the last five quarters.Declining profitability; company has created lower returns on shareholders’ equity.

Fedbank Financial Services, a smallcap finance company, has recently announced its financial results for the quarter ended September 2024. The company has shown positive performance in this quarter, with a PAT growth of 20.73% year on year. This has led to a score of 11, as compared to 15 in the previous quarter.

One of the key factors contributing to this positive performance is the company’s half-yearly PAT of Rs 134.78 crore, which is the highest in the last five quarters. The net sales for the quarter have also seen a significant growth of 21.2% over the average net sales of the previous four quarters. This trend is expected to continue in the near term.

The company’s operating profit (PBDIT) for the quarter has also been the highest in the last five quarters, at Rs 306.32 crore. Similarly, the profit before tax (PBT) less other income has also shown a positive trend, with the highest value of Rs 80.31 crore in the last five quarters.

However, there are some areas where Fedbank Financial Services needs to improve. The earnings per share (EPS) for the quarter is the lowest in the last five quarters, indicating a decline in profitability. The return on equity (ROE) is also at its lowest in the last five quarters, showing a decline in returns for shareholders.

Overall, Fedbank Financial Services has shown a positive financial performance in the quarter ended September 2024. However, the company needs to address its declining profitability and returns in order to maintain a strong position in the finance industry.