KOTAK MAHINDRA BANK Announces Quarterly Results (2QFY21); Net Profit Up 21.9%

Tue, 27 Oct

KOTAK MAHINDRA BANK has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

KOTAK MAHINDRA BANK Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Operating income	Rs m	84,188	84,217	83,374	-1.0%	-1.0%
Other income	Rs m	41,242	39,015	52,541	34.7%	27.4%
Total revenues	Rs m	125,430	123,232	135,914	10.3%	8.4%
Interest	Rs m	40,543	36,282	32,855	-9.4%	-19.0%
Gross Profit	Rs m	43,644	47,935	50,519	5.4%	15.8%
Other expenses	Rs m	50,709	51,403	59,182	15.1%	16.7%
Profit before tax	Rs m	29,529	24,353	39,145	60.7%	32.6%
Tax	Rs m	5,456	5,949	9,810	64.9%	79.8%
Profit after tax	Rs m	24,073	18,404	29,335	59.4%	21.9%
Gross profit margin	%	51.8	56.9	60.6
Effective tax rate	%	18.5	24.4	25.1
Net profit margin	%	28.6	21.9	35.2

Year-on-Year Performance:

• The bank's operating income (interest earned) during the quarter fell 1.0% on a year-on-year (YoY) basis. The interest expended was down by 19.0% YoY during the same period.
• The bank's operating profit increased by 15.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 60.6% in 2QFY21 as against 51.8% in 2QFY20.
• Other income increased by 27.4% YoY during the quarter.
• Net profit for the quarter increased by 21.9% YoY. Net profit margins during the quarter increased from 28.6% in 2QFY20 to 35.2% in 2QFY21.

Quarter-on-Quarter Performance:

• The bank's operating income (interest earned) during the quarter fell 1.0% on a quarter-on-quarter (QoQ) basis. The interest expended was down by 9.4% QoQ during the same period.
• The bank's operating profit increased by 5.4% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 60.6% in 2QFY21 as against 56.9% in 1QFY20.
• Net profit for the quarter increased by 59.4% QoQ, while net profit margins increased from 21.9% in 1QFY20 to 35.2% in 2QFY21.

To see how KOTAK MAHINDRA BANK has performed over the last eight quarters,please visit here.

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KOTAK MAHINDRA BANK Share Price Performance

Over the last one year, KOTAK MAHINDRA BANK share price has moved down from Rs 1,593.3 to Rs 1,550.0, registering a Loss of Rs 43.3 or around 2.7%.

Meanwhile, the S&P BSE BANKEX is trading at Rs 27,861.5 (up 1.6%). Over the last one year it has moved down from 33,412.4 to 27,861.5, a loss of 5,551 points (down 16.6%).

Overall, the S&P BSE SENSEX is up 3.2% over the year.

Current Valuations

At the current price of Rs 1,550.0, the price to earnings (P/E) ratio of KOTAK MAHINDRA BANK stands at 31.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.9 times.