IndusInd Bank's Q2 FY25 Financial Results Show Negative Performance and Concerning Factors

IndusInd Bank, a largecap private bank, recently announced its financial results for the quarter ending September 2024. According to the data, the bank has seen a negative performance with a score of -16, a significant drop from -5 in the last three months.

Despite this, there are some positive aspects to the bank’s financials. The interest earned in the quarter was the highest at Rs 12,686.28 crore and has been growing each quarter for the past five quarters. This indicates a positive trend in sales for the near future.

However, there are also some concerning factors in the financials. The Profit Before Tax (PBT) less Other Income has fallen by -165.92% year on year, with a quarterly value of Rs -412.23 crore. The Profit After Tax (PAT) has also seen a decline of -39.2% year on year, with a quarterly value of Rs 1,325.45 crore. The operating cash flow has been consistently falling for the past three years, with the lowest value at Rs -16,843.41 crore. This indicates a decrease in the company’s cash revenues from business operations.

The operating profit margin for the quarter was the lowest at 11.10% and has been falling each quarter for the past five quarters. This shows a decline in the company’s efficiency. The Gross NPA, which represents the proportion of stressed loans given by the bank, was the highest at 2.11% in the last five quarters. This indicates an increase in the proportion of risky loans given by the bank.

The operating profit (PBDIT) for the quarter was the lowest at Rs 1,407.87 crore in the last five quarters, and the non-operating income was 123.27% of the PBT. This suggests that the company’s income from non-business activities is high, which may not be a sustainable business model.

The earnings per share (EPS) for the quarter was the lowest at Rs 17.01 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The Net NPA, which represents the proportion of stressed loans given by the bank, was the highest at 0.64% in the last five quarters.

Lastly, the Capital Adequacy Ratio (CAR) for the quarter was the lowest at 16.51%, indicating a deterioration in the bank’s capital base compared to its risk assets.

Overall, the financial results for the quarter ending September 2024 for IndusInd Bank have been negative, with some concerning factors that need to be addressed. Investors should carefully consider these factors before making any investment decisions.