Highlights: HDFC Bank, Avenue Supermarts-owned DMart release Q3FY23 earnings - check profit, revenue and other details
Q3FY23 LIVE Updates: HDFC Bank, Indias largest private sector lender, declared its third-quarter results on the day of Makar Sankranti today, i.e. Saturday, January 14. Radhakishan Damani promoted Avenue Supermarts, which runs DMart chain of multi-brand retail stores is also announced its December quarter earnings today.
HDFC Bank, DMart: HDFC Bank – India’s largest private lender – reported strong earnings in the October-December quarter of the financial year 2022-23 (Q3FY23) in terms of profit and net interest income (NII). However, the asset quality of the bank as expected was stable for the third quarter.
Radhkishan Damani-owned DMart operator Avenue Supremarts reported in-line results in the December quarter as revenue grew by 25 per cent and profit came in single-digit on Saturday.
Along with HDFC Bank and DMart, a host of other firms such as InfoMedia, ZF Steering, Nouveau among others are also going to announce their third-quarter results during the day.
Here are the live updates from HDFC Bank Q3 results and DMart third quarter results today.
Latest Updates
DMart Q3 Results: Consolidated
Total Revenue for the quarter ended December 31, 2022 stood at Rs 11,569 crore, as compared to Rs. 9,218 crore in the same period last year.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q3FY23 stood at Rs.965 crore, as compared to Rs. 866 crore in the corresponding quarter of last year.
EBITDA margin stood at 8.3 % in Q3FY23 as compared to 9.4% in Q3FY22.
Net Profit stood at Rs.590 crore for Q3FY23, as compared to Rs. 553 crore in the corresponding quarter of last year.
PAT margin stood at 5.1% in Q3FY23 as compared to 6.0% in Q3FY22.
DMart Q3 Results: What Management Says
Q3 saw our revenues grow by 24.7% over the corresponding quarter of last year. FMCG and staples segment continued to outperform the general merchandise and apparel segments. Gross margin percentage decline over the corresponding quarter of last year is a reflection of this mix change. Discretionary non-FMCG sales did not do as well as expected in this quarter.
- Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited.
DMart Q3 Results: Profit & EPS
Net Profit stood at Rs 641 crore for Q3FY23, as compared to Rs 586 crore in the corresponding quarter of last year.
PAT margin stood at 5.7% in Q3FY23 as compared to 6.4% in Q3FY22.
Basic Earnings per share (EPS) for Q3FY23 stood at Rs.9.90, as compared to Rs.9.04 for Q3FY22.
DMart Q3 Results: Revenue, EBITDA & Margin
Total Revenue for the quarter that ended December 31, 2022, stood at Rs 11,305 crore, as compared to Rs 9,065 crore in the same period last year.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q3FY23 stood at Rs.974 crore, as compared to Rs 868 crore in the corresponding quarter of last year.
EBITDA margin stood at 8.6% in Q3FY23 as compared to 9.6% in Q3FY22.
DMart Q3 Results: Standalone
• Total Revenue stood at Rs. 11,305 crore, year-on-year (YoY) growth of 24.7%
• EBITDA of Rs. 974 Crore; YoY growth of 12.2%
• PAT stood at Rs. 641 Crore; YoY growth of 9.4 %
• Basic EPS for Q3FY23 stood at Rs.9.90, as compared to Rs.9.04 for Q3FY22
• 4 stores were added in Q3FY23
HDFC Bank Q3 Results: Networks
As of December 31, 2022, the Bank's distribution network was at 7,183 branches and 19,007 ATMs / Cash Deposit & Withdrawal Machines (CD Ms) across 3,552 cities/ towns as against 5,779 branches and 17,238 ATMs / CDMs across 2,956 cities/ towns as of December 31, 2021.
51% of our branches are in semi-urban and rural areas. In addition, we have 15,815 business correspondents, which are primarily manned by Common Service Centres (CSC). Number of employees were at 166,890 as of December 31, 2022 (as against 134,412 as of December 31, 2021).
HDFC Bank Q3 Results: Consolidated Profit
The consolidated net profit for the quarter ended December 31, 2022 was Rs 12,698 crore, up 19.9%, over the quarter ended December 31, 2021. Consolidated advances grew by 19.2% from Rs 1,312,142 crore as on December 31, 2021 to Rs 1,563,799 crore as on December 31, 2022.
HDFC Bank Q3 Results: Advances
Total advances as of December 31, 2022 were Rs 1,506,809 crore, an increase of 19.5% over December 31, 2021. Gross of transfers through inter-bank participation certificates and bills rediscounted, total advances grew by 23.6% over December 31, 2021.
Domestic retail loans grew by 21.4%, commercial and rural banking loans grew by 30.2% and corporate and other wholesale loans grew by 20.3%. Overseas advances constituted 2.8% of total advances.
HDFC Bank Q3 Results: CASA Deposits
Total Deposits showed a healthy growth and were at Rs 1,733,204 crore as of December 31, 2022, an increase of 19.9% over December 31, 2021. CASA deposits grew by 12.0% with savings account deposits at Rs 535,206 crore and current account deposits at Rs 227,745 crore.
Time deposits were at Rs 970,253 crore, an increase of 26.9% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 44.0% of total deposits as of December 31, 2022.
HDFC Bank Q3 Results: Capital Adequacy
The Bank's total Capital Adequacy Ratio (CAR) as per Basel Ill guidelines (including profits for the nine months ended December 31, 2022) was at 19.4% as on December 31, 2022 (19.5% as on December 31, 2021) as against a regulatory requirement of 11.7%.
This includes Capital Conservation Buffer of 2.5%, and an additional requirement of 0.2% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB).
HDFC Bank Q3 Result: Other Highlights
Operating expenses for the quarter ended December 31, 2022 were at Rs 12.463.6 crore, an increase of 26.5% over Rs 9,851.1 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 39.6%.
Pre-provision Operating Profit (PPOP) was at Rs 19,024.1 crore. PPOP, excluding net trading and mark to market income, grew by 19.3% over the quarter ended December 31, 2021.
Provisions and contingencies for the quarter ended December 31, 2022, were Rs 2,806.4 crore as against Rs 2,994.0 crore for the quarter ended December 31, 2021.
The total credit cost ratio was at 0.74%, as compared to 0.94% for the quarter ending December 31, 2021.
HDFC Bank Q3: Profit
Profit before tax (PBT) for the quarter ended December 31, 2022 was at Rs 16,217.6 crore. After providing Rs 3,958.1 crore for taxation, the Bank earned a net profit of Rs 12,259.5 crore, an increase of 18.5% over the quarter ended December 31, 2021.
HDFC Bank Q3 Asset Quality
Gross non-performing assets were at 1.23% of gross advances as on December 31, 2022 (1.00% excluding NPAs in the agricultural segment), as against 1.23% as on September 30, 2022 (1.03% excluding NPAs in the agricultural segment), and 1.26% as on December 31, 2021 (1.04% excluding NPAs in the agricultural segment). Net nonperforming assets were at 0.33% of net advances as on December 31, 2022.
HDFC Bank Q3 Results
The Bank's net revenue, grew by 18.3% to Rs 31.487.7 crore for the quarter ended December 31, 2022 from Rs 26,627.0 crore for the quarter ended December 31, 2021. Excluding net trading and mark to market income, the net revenue grew by 22.1% over the quarter ended December 31, 2021.
HDFC Bank Q3 Results
Net interest income (interest earned less interest expended) for the quarter ended December 31, 2022 grew by 24.6% to~ 22,987.8 crore from ~ 18.443.5 crore for the quarter ended December 31, 2021. Core net interest margin was at 4.1 % on total assets, and 4.3% based on interest earning assets.
ICICI Securities On HDFC Bank
Advance growth is likely to sustain the momentum at >24% YoY. NII growth post moderation in Q4FY22 inched up to 15% YoY in Q1FY23, 19% YoY in Q2FY23 and likely to rise further to 22% YoY in Q3FY23. ~28% of the advances are linked to repo, while 13-14% are linked to T-bills. On the other hand, 45% of loan portfolio is fixed-rate in nature.
The bank is chasing the best quality customers across product segments that comes at a lower yield, which will be offset by growth led by high-yielding payment products, rural and commercial. Given higher advances growth and rise in lending rates, we believe margins are likely to be up ~10-15bps QoQ, even after offsetting the TD rate hike.
HDFC Bank Q3 Preview: Prabhudas Lilladher Expectations
The brokerage expects a NII growth of 20.3% YoY /5.6% QoQ led by decent loan growth of 19.5% YoY, while margin would see improvement led by loan mix changes Bank may continue to build in buffer provisions which would lead to steady earnings.
Nirmal Bang Expectations On Banking Sector
In 3QFY23, we expect banks to continue to report healthy earnings growth, driven by: (i) margin expansion (ii) healthy other income as G-Sec yields have moderate on a sequential basis, which is likely to keep treasury income stable and (iii) lower credit cost.
We expect operating profit of the coverage banks to increase by 6.7% QoQ and 18.9% QoQ. Credit growth, as indicated by RBI data and provisional updates by various banks, indicates a sustained recovery in demand and it continues to remain strong for majority of the banks.
Provisional numbers indicate that HDFC Bank has outpaced the majority of its peers and is likely to continue to gain incremental market share.
Systematix Equities Institutional Expectations
In 3QFY23, we expect the banking sector to report NII/ PPOP/ Net profit growth at 6.6%/ 8.9%/ 8.8% Q-o-Q and 23.8%/ 23.4%/ 40.4% Y-o-Y respectively. Strong credit growth along with margin expansion in PVBs would lead to NII growth. From the quarterly results perspective, we prefer HDFC Bank among other lenders.
HDFC Bank Q3 Preview: Motilal Oswal’s Expectations
Motilal Oswal expects business growth to see continuous traction; margin expansion will be an important metric; deposits shall also be closely monitored. It added that the asset quality of HDFC Bank in Agri/Unsecured book and slippages among other key monitorable.
Commentary around Credit Cards, traction in fee income, and the merger with HDFC is also among the key monitorable for the HDFC Bank.
HDFC Bank Preview Q3: IDBI Capital Expectations
As per provisional figures, HDFC bank may report improvement in credit growth during the quarter, driven by home loans, and vehicle loans while the credit guarantee schemes, working capital loans as well as gold loans continue to support.
HDFC Bank Q3 Preview Highlights
Expect NII to increase by 12.7%, PPoP and PAT to grow by 5.6% and 3.8% YoY.
Advances growth of 19.5% YoY while deposit growth at 19.9% YoY.
In focus: Commentary on restructuring as well as update on merger.
Sharekhan On HDFC Bank Q3 Expectations
The banking sector is expected to report a healthy performance in Q3FY2023E, led by strong loan growth, margin improvement, and lower credit costs. However, the quantum of margin expansion is expected to be lower compared to the previous quarter due to the increased cost of deposits to garner a higher share of retail liabilities.
HDFC Bank Q3 Preview Highlights
NIM is expected to improve sequentially.
Asset quality is expected to remain stable.
Key monitorable would be any conversation on regulatory dispensations.
HDFC Bank Q3 Preview: KR Choksey Institutional Expectations
In Q3FY23, HDFC Bank may register a growth of 19.5% YoY in advances led by 30.0% YoY growth in commercial & rural banking loans and 21.5% growth in the retail segment. The corporate loan book may continue to show YoY traction with 20.0% YoY growth, while declining 1.0% QoQ.
We expect NIMs to see expansion of 20 bps YoY. Fee income growth to remain healthy. The cost-to-income ratio is expected to be 37.5% as against 39.2% in Q2FY23. The asset quality is expected remain stable for the quarter, led by moderation of slippages & healthy recoveries. PAT will grow by 19.7% YoY, owing to healthy operating income & lower provisions.
HDFC Bank Q3 Preview: Choice Broking Expectations
Advances book grew by 19.5% YoY in Q3FY23 as compared to 23.4% YoY in the previous quarter. We have estimated 25% YoY growth in NII, while PAT YoY growth is expected to ease mainly due to higher base. Margin is expected to remain stable at 4.3% during the quarter
DMart Q3 Preview: Here's What ICICI Securities Expect
On a favourable base, ICICI Securities expect Avenue Supermarts to report a consolidated revenue growth of 25% YoY to Rs 11504 crore (three-year CAGR:19%). The company is expected to maintain its trajectory of 19-20% CAGR witnessed in the previous four to five quarters. Store additions were subdued during the quarter with opening of four D-Mart Outlets (~ 0.2 million sq ft addition) taking the total store count to 306.
We expect revenue per sq ft to increase by 2% YoY to Rs 9130/sq ft (vs. pre-Covid levels: Rs 9700/sq ft). Gross margin enhancement would be the critical factor to watch as the management in the previous quarter had indicated that inflationary stress was more acute at lower price points in discretionary non-FMCG categories.
Expect gross margins to decline 20 bps YoY to 15.2%. We anticipate EBITDA margins to contract by 60 bps YoY to 8.8%. Absolute EBITDA to increase 17% YoY to Rs 1012.4 crore (three-year CAGR: 19%). Subsequently, we expect PAT to grow 17% YoY to Rs 646.5 crore
HDFC Bank Q3 Preveiw: B&K Securities Expectations
HDFC Bank has shared strong provisional loan growth at 16.4% YoY and 5% QoQ. CASA growth (up ~25% YoY) continues to outperform term deposit (up 6% YoY), which should support NIMs as well. We expect NIMs uptick QoQ and NII growth to now come closer to loan growth; thus soothing investors' concerns. Full quarter impact of resumption of high-yielding credit cards should also be visible in core fee. Despite seasonal spike in Agri slippages, we expect overall slippages to be broadly flattish. Media reports suggest sale of retail NPAs to ARCs as well.
DMart Q3 Preview: What Nuvama Research Expects
In line with Zee Business expectations, Avenue Supermarts (DMart) standalone revenues for Q3FY23 may come at Rs 113 billion, up 25% YoY/9% QoQ. The company has added only 4 stores taking the count to 306. We expect DMart to report a 20bps YoY improvement in gross margins (similar trend seen in Q2FY23).
On the back of lower store openings, we expect other opex to remain in sync with Q2FY23. We thus build in an EBITDA Margin of 9.3%. EBITDA at Rs 10.6 billion is expected to increase 22% YoY
ICICI Securities View on HDFC Bank Ahead Of Q3 Results
HDFC Bank carries cumulative credit-related contingency + floating buffer of 75bps (comprising floating provisions of Rs14.5bn and contingency provisions of Rs96.3bn). Total provisions (comprising specific, floating, contingency and general) of Rs313bn is equivalent to 2.11% of advances, or 171% of GNPA. With reducing stress, sustained recovery momentum and confidence in the bank’s inherent portfolio quality, we estimate credit cost to settle at 0.9% for FY23E.
HDFC Bank Q3 Preview: What ICICI Securities Says
HDFC Bank is strengthening its geographical footprint in terms of both reach and density which will result in higher operating expenses growth of ~20% YoY. As a result, operating profit is likely to grow in mid-teens. Given lower provisioning expectations, PAT growth is expected at ~20% YoY in Q3FY23.
HDFC Bank Q3 Preview: What Philip Capital Expects
The analysts at Philip Capital expect a NII growth of 20.3% YoY /5.6% QoQ led by decent loan growth of 19.5% YoY, while margin would see improvement led by loan mix changes Bank may continue to build in buffer provisions which would lead to steady earnings.
HDFC Bank Q3 Preview: What Axis Securities Expect
The NII of HDFC Bank is to be supported by healthy loan growth across segments; NIMs expansion is likely led by growth in retail book. Fee income expected to improve and Opex ratios to remain rangebound. While Asset Quality may remain stable sequentially.
DMart Q3: What D-Street Analysts Predict
Analysts at Antique Stock Broking expect DMart revenue to grow at 27% YoY driven by higher inflation and aggressive store expansion. On 3-year CAGR basis (pre[1]covid-19 levels), we expect revenue to grow at 19% CAGR.
The analysts also expect some sequential improvement in sales of general merchandise with improvement in overall consumption sentiment. We expect EBITDA margin to retract to pre-Covid-19 levels driven by operating leverage.
DMart Revenue, Profit Q3 Expectations
In its expectations, Zee Business research believes that the consolidated revenue of DMart may come at Rs 11,540 crore, translating to almost a 25 per cent growth on YoY basis in Q3 as compared to Rs 9,218 crore in the same quarter a year ago.
While the company’s profit after tax may surge by 19 per cent to Rs 657 crore in Q3FY23 against Rs 553 crore in Q3FY22 and EBITDA to come at Rs 1,032 crore, up 19 per cent YoY.
Avenue Supermarts (DMart) Q3 Expectations
Zee Business research estimates a slight improvement in gross margins from last year. It expects that the overall growth is slower than pre-Covid levels; four new stores opened in the third quarter. The focus would be on the management commentary on the outlook, valuations still expensive at 70x FY24E
HDFC Bank Q3 Deposits Growth Preview
According to Zee Business research, the overall deposit growth shall com around 19.9%; whereas current and savings account deposits growth may surge by 12%
CASA ratio may be around 44% in Q3 versus 45.4% in Q2.
HDFC Bank Loan Growth Expectations In Q3
Zee Business research sees 21.5% growth in domestic retail loans, while wholesale deposits may grow by 11.5%, decline by 2.5% quarter on quarter.
Besides, it also expects a 30% increase in commercial and rural loans and a 20% increase in corporate and wholesale loans
HDFC Bank: Asset Quality Expectations
Gross Non-Performing Asset (NPA) flat at 1.2%; Net NPA is seen flat at 0.3% and Net Interest Margin may see a marginal rise between 10 to 20 bps, as per Zee Business research.
HDFC Bank Q3 Preview
The net profit of India’s private lender's may come around 15.1 per cent to Rs 11,900 crore in third quarter of FY23 against Rs 10,342.2 crore in a year-ago quarter, according to Zee Business research.
HDFC Bank Q3 Preview
Zee Business research expects HDFC Bank’s NII (net interest margin) may come around 22 per cent to Rs 22,500 crore in December quarter of FY23 as compared to Rs 18,443.5 crore in the same quarter of previous fiscal.
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