SBI Cards share price falls over 3% after coronavirus stings Q4 earnings

SBI Cards share price falls over 3% after coronavirus stings Q4 earnings

Share price of SBI Cards and Payment Services lost 3.11% to Rs 544 compared to the previous close of Rs 561.45 on BSE

SBI Cards share price hit its all-time high of Rs 769 on March 18 and all-time low of Rs 501 on April 16 this year

SBI Cards and Payment Services share price fell over 3% in early trade after the credit card and payment services firm reported a 66% fall in Q4 net profit. This the first set of quarterly earnings for SBI Cards after listing on March 16 this year.

Share price of SBI Cards and Payment Services lost 3.11% to Rs 544 compared to the previous close of Rs 561.45 on BSE. Total 1.39 lakh shares of SBI Cards changed hands amounting to turnover of Rs 7.67 crore on BSE.

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Market cap of SBI Cards rose to Rs 51,548 crore. Meanwhile, share price of parent company SBI was trading flat at Rs 165.60 on BSE.

SBI Cards share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

SBI Cards share price hit its all-time high of Rs 769 on March 18 and all-time low of Rs 501 on April 16 this year. It has fallen 7.7% in last one month and 3.43% in one week.

SBI Cards and Payment Services reported a 66 per cent decline in net profit at Rs 84 crore in Q4 on additional provisions due to the COVID-19 crisis as well as rise in total expenses.

The firm had posted a net profit of Rs 249 crore in the corresponding January-March period of the preceding fiscal year 2018-19. Revenue rose 23 per cent to Rs 2,433 crore during the fourth quarter of FY20, as against Rs 1,983 crore in same period a year ago. 

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Total income rose by 21 per cent to Rs 2,510 crore from Rs 2,076 crore. The total expenses of the company jumped 42 per cent to Rs 2,398 crore from Rs 1,691 crore.

For fiscal year 2019-20, net profit of SBI Cards climbed 44 per cent to Rs 1,245 crore from Rs 865 crore in preceding fiscal.

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"Excluding COVID-19 impact, PAT for FY20 would have been Rs 1,662 crore, growth of 92 per cent," it said in a release.

The impact of COVID-19 on credit quality is uncertain and additional provisions of Rs 489 crore have been created, it said, adding portfolio analysis has also been undertaken and significant measures have been implemented to mitigate credit risks.

By Aseem Thapliyal