About the Company:
SBI Cards and Payment Services Limited or (“SBI Card”) is a non-banking financial company that offers extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel & fuel and banking partnerships cards along with corporate cards covering all major cardholder’s segments in terms of income profile and lifestyle.
QoQ & YoY Performance:
India’s one of the leading credit card portfolios Company has declared the results for its last quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated total revenue of the company stood at Rs. 243,324 lakhs, went slightly down by 1.85% in March quarter 2020. Total expenditure (excluding interest and depreciation expenses) is Rs. 203,521.57 crores were up by 26.57%. EBITDA numbers slipped by 50.26%.
- YoY Performance: The Company has reported jumped by 22.69% in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company climbed to 45.15%. EBITDA numbers plunged to 29.51%.
- Profitability of the company: The net profit of the company plummeted to 80.78% to Rs 8,354.27 lakhs in the quarter ended March 2020 as against Rs 43,466.64 lakhs during the previous period in the same quarter.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock was closed at Rs. 561.45 per share, down by 2.15%. The company has posted disappointing quarterly numbers and the board has a payment of interim dividend @ Rs.1/- per share (10 %) on the equity shares of the Company of the face value of Rs. 10/- each for the financial year ended March 31, 2020. However, the Asset quality improved as gross non-performing assets (GNPA) was at 2.01% versus 2.44% and the provision coverage ratio stood at 67.20% versus 66.48% YoY. Notable, Impairment losses and bad debt of the company jumped 138% YoY to Rs 838.18 crore during the quarter under review. Total expenditure rose 41.79% YoY to Rs 2,398.31 crore. Hence, we recommend it to ‘HOLD’.