Result Review 4QFY2013

HDFC 

HDFC reported standalone earnings growth of 17.3% yoy for the quarter, which was in line with our expectations. Healthy loan book growth of 20.0% and stability witnessed on the spreads as well as on the asset quality front, were the key highlights from the results. While, NII for the company grew at 13.6% yoy, growth in non-interest income came in strong at 36.4% yoy, and hence, the operating income and pre-provisioning profit grew at 14.6% and 14.9% yoy respectively. Provisioning expenses for the company remained flat yoy at `25cr.Overall, the company reported standalone earnings growth of 17.3% yoy. At the current market price, HDFC’s core business (after adjusting Rs271/share towards the value of its subsidiaries) is trading at 4.0x FY2015E ABV. Source: AngelBroking

Lupin Labs

Lupin Labs posted results much ahead of expectations. While the net sales were much in line with the expectations at `2,537.4cr (expectations of `2,500cr), registering a yoy growth of 34.4%. The main positive came on the OPM front, where the margins came in 25.5% V/s expectations of 21.0%, which aided the net profit to come in at `408cr V/s expectations of `294cr.Source: AngelBroking

Ranbaxy Labs  

The Ranbaxy Labs numbers came below expectations. The net sales and profits came in at `2439.8cr and `85cr, much less than expected `2,850cr and `202cr.  While on the sales front, it reported a de-growth, the same was on back of the base impact. However, on the like-to-like basis, it posted a double digit growth. The main disappointment was on the OPM front, which came in at 6.0% much below our expectations at 10.0%. Source: AngelBroking

ABB 

For 1QCY2013, ABB India’s (ABB) top-line performance was better than our expectations, growing by 10% yoy to `1,953cr mainly on account of 32% yoy revenue growth in power system segment. Although ABB's margin remains under pressure, coming in flat yoy at 5.4%, it is 30bps above our estimates (due to yoy margin improvement in power products and process automation segments). Due to elevated interest cost (`20cr in 1QCY2013 vs `5cr in 1QCY2012) and continued margin pressure, ABB's bottom-line declined by 10.7% yoy to `43cr. The company reported 8.9% yoy decline in order backlog to `8,229cr.Source: AngelBroking

Corporation Bank 

Corporation Bank reported healthy performance for the quarter, both on the operating as well as on the asset quality front. NII expectedly grew at 11.6% yoy to `931cr, while non-interest income grew strongly by 34% yoy to `567cr, higher than expected (possibly aided by higher-than-expected recoveries), thereby leading to operating profit growth of 13.3% yoy. As the bank witnessed sequential improvement in asset quality (Gross NPA levels lower by 10.3%), it utilized the higher non-interest income generated during the quarter to shore up the provisioning coverage ratio (up by 402bp qoq). Consequently, the provisioning expenses were higher by 36.2% yoy to `460cr and Net NPA levels were lower by 16.9% sequentially. Overall, the bank reported flat earnings for the quarter at `356cr. Source: AngelBroking