Angel One and Federal Bank, among others, would be reporting December quarter results later in the day. The Angel One board would also consider a proposal of interim dividend for the quarter. The private bank and the broking firm recently came out with business updates. As per brokerage estimates, Angel One is expected to report a 15 per cent-plus growth in profit on a 20 per cent-plus growth in sales. Federal Bank, on the other hand is expected to report 30 per cent rise in profit on a 20 per cent jump in net interest income.
In the case of Angel One, Motilal Oswal Securities is expecting net profit at Rs 195.40 crore, up 18.6 per cent YoY. It sees revenues for the quarter at Rs 540.40 crore, up 21.5 per cent YoY. Ebitda is seen at Rs 267.50 crore, up 18.5 per cent YoY. Gross client additions were weak during the quarter, Motilal Oswal said adding that F&O volumes continued to trend higher with December 2022 being a new high.
"With interest rates increasing, the spread on MTF book will decline, it said adding that cost-to-income ratio is likely to contract for the quarter."
In its business update, Angel One said its total client base stood at 1,25 crore as of December 2022, up 2.6 per cent MoM and 56.7 per cent YoY. The average funding book rose 6.4 per cent MoM to Rs 138 crore. The total number of orders increased 21.8 per cent MoM to 8.62 crore in December 2022. while the number of orders per day rose 16.2 per cent MoM to 39 lakh.
On a MoM basis, Angel One's market share improved in all segments, except for cash. The market share in the F&O/Commodity segments rose 70bp/140bp. In the cash segment, the market share fell 20 bps.
This private lender may log a 34.9 per cent jump in December quarter profit at Rs 703.7 crore compared with profit of Rs 521.7 crore in the same quarter last year, Kotak Institutional Equities said in a note.
On a quarter-on-quarter basis, the same brokerage expects profit remain flattish. Net interest income (NII) is expected to jump 20.2 per cent to Rs 1,849.60 crore in the December quarter compared with Rs 1,538.9 crore in the corresponding quarter of last year.
In terms of margin, Morgan Stanley expects margin to improve 10 basis points QoQ to 3.41 per cent.
"This will be driven by repricing of loans and mix shifts towards higher-yielding assets, which will be partly offset by rising funding costs. NII growth should improve to 22 per cent YoY against 19 per cent YoY last quarter. Fee income should remain healthy at Rs 470 crore (up 30 per cent YoY)against Rs 450 crore last quarter," it said.
Federal Bank reported a 19.1 per cent year-on-year (YoY) growth in advances for December quarter.
The bank’s gross advances stood at Rs 1,71,043 crore from Rs 1,43,638 crore YoY. As per internal classification, retail credit book grew 19.1 per cent and wholesale credit book grew 19 per cent. Retail to wholesale ratio stood at 54:46. The bank’s customer deposits aggregated to Rs 1,92,451 crore, a growth of 12.8 per cent over Rs 1,70,654 Crore, as of December 31, 2021.
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