SBI Cards & Payment Services Reports Negative Financial Performance in Q2 FY24-25

SBI Cards & Payment Services, a leading finance and non-banking financial company (NBFC) in the largecap industry, recently announced its financial results for the quarter ending September 2024. The stock call for SBI Cards by MarketsMOJO is 'Sell'.

According to the financial report, SBI Cards has seen a negative performance in the second quarter of FY24-25. The company's score has fallen from 0 to -10 in the last three months, indicating a decline in its financial health.

One of the major factors contributing to this negative performance is the decline in Profit Before Tax (PBT) less Other Income. The company's PBT for the quarter was Rs 410.43 crore, which is a 39.9% decrease from the average PBT of the previous four quarters. This trend is expected to continue in the near term.

Similarly, the Profit After Tax (PAT) for the quarter was Rs 404.42 crore, a 32.8% decrease from the average PAT of the previous four quarters. The company's Operating Profit (PBDIT) also saw a decline, reaching its lowest point in the last five quarters. This indicates a negative trend in the company's profitability.

Moreover, the Operating Profit Margin for the quarter was at its lowest point of 28.24% in the last five quarters, indicating a decrease in the company's efficiency. The PBT and EPS for the quarter were also at their lowest points in the last five quarters, further highlighting the declining profitability of the company.

On a positive note, SBI Cards saw an increase in its Non Operating Income, reaching its highest point in the last five quarters. However, this increase may not be sustainable as it comes from non-business activities.

In conclusion, SBI Cards & Payment Services has reported a negative financial performance for the quarter ending September 2024. Investors should take note of these factors before making any investment decisions.