Shares of telecom service provider Bharti Airtel, automobile major Hero Motocorp and private sector bank Axis Bank are in focus today, with investors reacting to the quarterly results of these companies.
While Axis Bank is down 3.2% at Rs 527 and Bharti Airtel is trading marginally down at Rs 426 after having regained some lost ground, Hero Motocorp is up with a gain of 0.5% at Rs 3725.
After trading hours on Tuesday, Axis Bank announced that it posted a net profit of Rs 1305.60 crore for the quarter ended June 2017. That was down 16.07% compared to its net profit in the year-ago quarter. Total income increased by a marginal 1.44% to Rs 14,052.30 crore in the first quarter.
Axis Bank's gross non-performing assets stood at Rs 22,030.87 crore as on 30 June 2017, as against Rs 21,280.48 crore as on 31 March 2017 and Rs 9553.17 crore as on 30 June 2016. The ratio of gross NPAs to gross advances was 5.03% as on 30 June 2017. It was 5.04% by end March 2017 and 2.54% as on 30 June 2016. The ratio of net NPAs to net advances stood at 2.3% as on 30 June 2017 as against 2.11% as on 31 March 2017 and 1.08% as on 30 June 2016.
Axis Bank's net interest income increased by 2% in the first quarter, over the year-ago quarter and net interest margin came in at 3.63%. The bank raised about Rs 8500 crore in the first quarter, by issuing Tier I and Tier II bonds.
Hero MotoCorp saw a modest 3.49% Q-o-Q increase in net profit in the April - June 2017 quarter, at Rs 914 crore. Gross turnover was up 7.51% in the quarter to Rs 8612.90 crore.
The company's EBITDA was up at 5.35% in the first quarter of this fiscal, at Rs 1295.90 crore and EBITDA margin was steady at 16.3%. The company said while announcing results that it further consolidated its position in the domestic motorcyle market by clocking all time high sales in the first quarter, thanks to improved market sentiment and strong demand for its range of two-wheelers.
Hero Motocorp said that it will remain committed to consolidating its domestic leadership and would also expand global footprint into new markets, going forward.
Bharti Airtel's earnings took a hit in the first quarter of this financial year, with Reliance Iio's aggressive tariff and data packages taking a toll.
Bharti Airtel, suffering its fourth successive quarterly decline in earnings, posted a net profit of Rs 367 crore in the April - June 2017 quarter, down as much as 75% compared to its net profit of Rs 1462 crore in the year-ago quarter. The previous quarter too was equally bad for the telecom major as it reported a 72% decline in net profit, compared to the January - March 2016 quarter. The preceding quarter was not any significantly better either, as the company's net profit was lower by 55% compared to prior corresponding quarter.
In the first quarter of this financial year, Bharti Airtel's consolidated revenue declined 14% to Rs 21,958 crore, from Rs 25,546 crore in the year-ago quarter. Although voice usage per customer saw a 22% jump in the quarter, earnings per customer was down 34%. Realisation from data too declined sharply, despite a strong surge in consumption.
