Q4FY23 Result Updates – 21 April 2023

Last Updated on May 8, 2023

Dear Readers,

Welcome to our weekly company result update note. We understand the importance of staying up-to-date with the latest financial developments of the companies you have invested in. That’s why we are committed to providing you with short and insightful information about the earnings and performance of the companies in our coverage.

In addition to the weekly company result update, after the end of the earnings season, we will also be sending you a quarterly sector result review. This will give you a broader understanding of how these sectors are performing and help you make informed decisions about your investments.

TCS

Tata Consultancy Services reported revenues of US$7,195mn, +0.6% QoQ Constant Currency (CC). EBIT margin came in at 24.5%, flat QoQ. Order book stood at US$10bn for Q4 which was relatively strong on QoQ basis, but down 11.5% YoY. PAT came in at 11,436 Cr.

Headcount growth was weak at with net addition of 821 employees. Overall results were slightly negative in line with the slowdown in the IT Sector.

Infosys

Infosys has reported revenue of US$4,554mn, a decline of 3.2% QoQ CC. EBIT margin came in at 21%. PAT came in at 6,134 Cr. The total Contract value was muted at US$2.1bn, down by 1/3^rd QoQ, -7% YoY. Management commentary was negative with margin guidance reduced by 100bps to 20-22%. Click to read our detailed Results Update

TATA Communication

In the fourth quarter of FY23, Tata Communications witnessed a decline in EBITDA by 1.1%, dropping to Rs 1,034 Cr from Rs 1,045 Cr in Q4 FY 2022. However, the revenue from operations for the full year grew by 7% and stood at Rs 17,838 Cr. Operating margins declined to 23% in the quarter while the full-year margins at 24%

Stable results with margins within the guided range while growth came as positive amid sector slowdown risks.

We have recently included this company in our coverage. Click to read the detailed Coverage Note

Angel One

Angel One has recorded net revenue of Rs 644 Cr, growing 12% QoQ and 26.9% YoY. The cumulative net revenue for the year stands at Rs 2,291 Cr, growing 36.8% YoY.

The company has recorded a profit after tax of Rs 267 Cr for the quarter, growing 17.1% QoQ and 30.4% YoY. The cumulative PAT for the entire year was Rs 890 Cr reflecting a growth of 42.4% YoY.

Good results on account of positive earnings growth, steady market share, and stable ARPU. We have recently included this company in our coverage. Click to read detailed Coverage Note.

ICICI Lombard

The Gross Direct Premium Income (GDPI) of the Company stood at Rs. 21,025 Cr in FY2023 compared to 17,977 Cr in FY2022, a growth of 17%.GDPI of the Company was at 49.77 billion in Q4FY2023 as against 4,666 Cr in Q4FY2022, a growth of 6.7%. The combined ratio stood at 104.2% in Q4 FY2023 compared to 103.2% in Q4 FY2022.

Profit after tax grew by 36.0% to 1,729 Cr in FY2023 compared to 1,271 Cr in FY2022. PAT grew by 39.8% to 437 Cr in Q4 FY2023.

The result was negative due to a higher-than-expected combined ratio.

HDFC Bank

The country’s largest private sector lender HDFC Bank’s Q4FY23 PAT came in at Rs. 12,050 Cr, up 19.8% YoY but down 1.7% QoQ. NII grew 24% YoY while NII growth for FY23 averaged 20.4% vs 11% for FY22.

Profitability thereby was stable with FY23 RoE at 17.4% vs FY22 RoE at 16.9%. Overall muted results with higher than expected operating expenses.

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