InvestorQ : What is your view on the results of Bajaj Finance and Ambuja Cements that announced quarterly results on Tuesday?
Sam Eswaran made post

What is your view on the results of Bajaj Finance and Ambuja Cements that announced quarterly results on Tuesday?

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Moii Chavate answered.
2 months ago
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Let me respond to your query on Bajaj Finance first. The company reported 18.6% growth in revenues at Rs.7,732 crore for the quarter. Net profits were up 53.5% at Rs.1,481 crore in the Sep-21 quarter. It saw 16% spike in interest income, 27.4% rise in commissions and fees and also a 28% spike in net interest income or NII at Rs.5,335 crore.

Operating profits gained from a sharp 25% fall in impairment provisions on investments, while the loan loss provisions the quarter fell over 2% to Rs.1,300 crore. Gross NPAs eased by 51 bps to 2.45%. For Bajaj Finance, the AUM grew 23% while deposits grew 33%. Net margins for the Sep-21 quarter at 19.15% was 450 bps better on yoy basis.

Regarding Ambuja Cements, the company reported 7.74% growth in sales at Rs.6,647 crore. Cement volumes were up 5.8% at 6 million tonnes in the Sep-20 quarter. However, the total operating cost per tonne spiked sharply due to the spike in fuel costs. Despite that, the EBITDA grew 5% at Rs.1,416 crore in the Sep-21 quarter while operating EBIT grew 7.5% to Rs1,140cr.

Ambuja’s significant operating subsidiary, ACC reported 10% higher EBIT for the quarter at Rs.562 crore as the Project Parvat managed to offset cost inflation. Net margins at 10.02% were flat on yoy basis but lower by 250 bps on sequential basis, largely on account of the pressure created by fuel inflation in the quarter.

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