InvestorQ : I hold shares in recently listed Tamilnad Mercantile Bank and Balaji Amines. How were the results of these 2 companies for Q2?
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I hold shares in recently listed Tamilnad Mercantile Bank and Balaji Amines. How were the results of these 2 companies for Q2?

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Riya Dwivedi answered.
1 month ago
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Let me talk about TMB first. It reported 3.7% growth in revenues for Q2FY23 at Rs1,142 crore with positive growth coming from 10.5% increase in retail banking revenue at Rs791 crore and revenue compression from treasury and corporate banking. Net profits were up a healthy 36.8% at Rs262 crore due to operating margins improving from 29.14% to 34.1% yoy. There was a boost to asset quality with Gross NPAs falling from 3.31% to 1.70% yoy and net NPAs falling from 1.82% to 0.86% yoy. ROA improved from 1.58% to a rather robust level of 2.04% yoy. Net margins at 22.98% in Q2FY23 compared favourably yoy and QOQ.

Let me now turn to the numbers of Balaji Amines Ltd. Sales were up 19.4% at Rs628 crore with the core specialty chemicals business growing at 18.6% yoy. Balaji Amines also saw positive revenue growth from hotels and CFL lamps, albeit small. The good news was in the working capital front with reduced trade receivables and better trade payables terms. Net profits for Q2FY23 was up 16.1% at Rs92.57 crore. Profits grew less than sales despite lower raw material costs as the higher inventory holding costs amidst supply chain constraints added up. Net margins at 14.75% in Q2FY23 was lower compared to yoy and QOQ periods.
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