SBI cards and payment payment services rose more than 3 percent at RS 841.50 at BSE in the morning trade on January 25, the day after the company reported a healthy number set for the December quarter.
SBI Cards & Payment Services Profit after tax (PAT) reduced 84 percent YoY to RS 386 Crore with RS 3,140 Crore’s revenue, marking a 24 percent yoy surge, for the quarter ended December 31, 2021, the company was in submission of regulations on January 24.
Increased income “is mainly due to higher income of costs and services in Q3 FY22”, the SBI card said.
For the nine-month period ended December 31, the company recorded an income of Rs 8,285 Crore, which was 14 percent higher than the period in accordance last year. PAT for the April-December 2021 period increased by 28 percent YoY to Rs 1,035 Crore.
Returns average assets (ROAA), key metrics to assess the profitability of company assets, comes at 5 percent during the third quarter compared to 3.3 percent in the same period last year.
At 11:16 a.m., shares traded at Rs 841.50, up 27.40, or 3 percent, at BSE. The script has touched the highest intraday RS 854 and Low Intraday Rs 781.25.
Income before credit costs increased by Rs 213 Crore, or 23 percent, to Rs 1,144 Crore in the last quarter, compared to RS 931 Crore in the same quarter of the last fiscal year.
The SBI card noted that the volume of his new account grew to 1,008,000 in Q3 FY22, up 10 percent compared to 918,000 in Q3 FY21.
The card-in-force grew 15 percent to 1.32 crores in December 2021 from 1.15 Crore in the period last year.
Domestic Research and Broking Company Motoral Oswal has maintained a “buy” call on shares, with the target of Rs 1,120 per share, upside down 32 percent of the current market price.
“SBI cards report in-line performance, are characterized by sharp growth in expenditure (47 percent yoy), while PAT grows 84 percent yoy to RS 386 Crore. Pre-provisional operating profit (PPOP) grew 23 percent yoy, assisted by income growth Stable (5 percent beat). Margin stands at 14 percent (14.1 percent in 2QFY22), and management shows the fussy level has fallen. Retail and corporate expenses grow strongly on 36 percent yoy and 93 percent yoy, “he said.
“We estimate the company to provide 51 percent income for FY22-24E, which leads to ROA / ROE 7.2 percent / 30 percent and maintains a buying call on shares.”
