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IndusInd Bank And Cera Shine With Their Q2 Results, Margin Growth Evident: Result Analysis

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IndusInd Bank

indusind-bank-logoIndusInd Bank Posted 26% growth in profits YoY for Q2. Growth in profits was supported by revenue growth of 24%. The company has reached its target of 4% net interest margin.
indusind-bank-q2fy17-results
Key TakeAways

  • Banks Net Interest Margin  improved from 3.88% in Q2 last year to 4.00% for the current reported quarter.
  • CASA growth at 36.54% YoY for the current quarter.
  • Advances and Deposits growth at 26% and 39% YoY respectively.
  • Provision Coverage Ratio at 59%. The RBI prescribed ratio is at 70%. Though not mandatory but its safer for the banks maintain those levels.
  • Gross NPA’s grew at 4.46% QoQ, but the Gross NPA% declined by 0.01%. Mainly on account of higher growth in advances.
  • On NPA front the bank has been doing good and has maintained low levels.
  • Capital Adequacy Ratio (CAR) is at 15.32, well above the mandated 9.6.

indusind-bank-q2fy17-share-price-movement
 

Cera

cera-logoCera, which came out with results today, has posted revenue growth of 12.50% and profit growth of 40.6%. The Ahmedabad based company is into sanitary ware, faucets, fittings and tiles.
 
cera-q2fy17-results

  • The company’s operating margin has improved drastically. For current reported quarter the operating margin stood at 14.25%, where as for the same period last year the the operating margin was at 10.86%.
  • The major reason for the improved margins for cheaper availability of raw materials.

cera-q2fy17-share-price-movement
The share closed 1.57% below the previous close. The stocks closing price is at Rs 2632.65.