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SBI Card shares slip over 4% after Q3 earnings miss estimates

SBI Card shares slip over 4% after Q3 earnings miss estimates

SBI Card reported a 32.1 per cent rise in net profit to Rs 509 crore in Q3 of the current fiscal. In the year-ago period, it had reported a net profit of Rs 386 crore.

SBI Cards stock fell up to 4.63 per cent intraday in the afternoon session to Rs 731.60 after the earnings announcement.     SBI Cards stock fell up to 4.63 per cent intraday in the afternoon session to Rs 731.60 after the earnings announcement.

Shares of SBI Cards and Payment Services slipped over 4 per cent in the afternoon session today after the December quarter earnings of the firm missed estimates of Dalal Street. SBI Card reported a 32.1 per cent rise in net profit to Rs 509 crore in Q3 of the current fiscal. In the year-ago period, it had reported a net profit of Rs 386 crore.  

Prabhudas Lilladher saw SBI Card reporting a net profit of Rs 553.7 crore, up 43.5% year-on-year (up 5.3% quarter-on-quarter). Net Interest Income (NII) was expected to rise 23.3 percent Y-o-Y (up 10 percent Q-o-Q) to Rs 1,228.2 crore, according to Prabhudas Lilladher. 

The earnings, which came below expectations, triggered a correction in the stock in the afternoon session.  

SBI Card stock opened flat at Rs 767.95 against the previous close of Rs 767.15 on BSE. The stock fell up to 4.63 per cent intraday in the afternoon session to Rs 731.60 after the earnings announcement.  

SBI Card shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has lost 9.48 per cent in one year and fallen 7.3 per cent since the beginning of this year. Total 2.13 lakh shares of the firm changed hands amounting to a turnover of Rs 16.06 crore on BSE. Market cap of the firm fell to Rs 69,891 crore.  

Total revenue climbed 16% YoY to Rs 3,656 crore against Rs 3140 crore in the Q3 of previous fiscal. 

Interest income rose by Rs 336 crore to Rs 1,609 Cr for Q3 against Rs 1,273 Cr for Q3 FY22.  

Income from fees and services rose Rs 213 cr to  Rs 1,670 Cr for Q3 FY23 against Rs 1,457 cr in the corresponding quarter of the last fiscal.  

Gross non-performing assets (NPAs) fell to 2.22% of gross advances as on December 31, 2022 as against 2.40% as on December 31, 2021. Net non-performing assets were at 0.80% as at December 31, 2022 as against 0.83% as on December 31, 2021. 

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Published on: Jan 24, 2023, 3:19 PM IST
Posted by: Tarab Zaidi, Jan 24, 2023, 3:15 PM IST