IndusInd Bank's net income sinks 68% to Rs 684 crore over legacy issues
The bank promoted by the Hindujas in fact had nothing in its books to write home about. On a consolidated basis, net profit fell 72 percent on-year to Rs 604 crore, according to the investor presentation on Monday.
Despite the all-round poor show, brokerages said the figures are much better than they had penciled in, given the bad set of numbers it had reported in the previous quarter.
In anticipation of more bad numbers, investors were averse to hold on to the bank's shares leading to a massive sell-off in its counter. After losing 5% in the intra-day, the stock finally closed with deep cuts at Rs 802.05 losing 2.63% of its value.
The management led by non-executive chairman Sunil Mehta and interim executive committee led by Soumitra Sen and Anil Rao told analysts that 'though the numbers are weak they are fully clear off any one-offs and the March quarter chapter is fully behind the bank.'
Mehta said the sole focus of the bank is to maintain profitability and prepare itself for the next phase of growth under a soon to be coming CEO, whose appointment is pending with the regulator, RBI.
Gross NPAs jumped to 3.64% in June 2025 from 3.13% in March 2025, while net NPAs rose to 1.12% from 0.95% during the same period. But the provision coverage ratio was stable at 70 as provisions and contingencies for the June quarter declined to Rs 1,760 crore from Rs 2,522 crore in the March quarter. Total loan related provisions were at Rs 10,472 crore or 3.14% of the loan book, they said, attributing the spike in NPAs to the bank's inability to sell NPAs to ARCs or as SRs due to poor profits.
In the previous quarter, the bank had reported its biggest-ever quarterly loss, as it took a nearly Rs 2,000-crore hit to its accounts in the year to March due to years of mis-accounting of internal derivative trades. Mehta said the bank has stopped the internal trading book for now.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
14 minutes ago
- India.com
8th Pay Commission BIG update: When will 8th CPC come into effect, how much salary will increase? Key details revealed
8th Pay Commission BIG update: When will 8th CPC come into effect, how much salary will increase? Key details Revealed Central government employees are eagerly waiting for the 8th Pay Commission to be implemented. Everyone is hoping that it will bring a big increase in their salaries. Now, a new report has come out that answers some important questions like when the 8th Pay Commission might be rolled out and how much salary hike can be expected. According to a report in Kotak Institutional Equities, the 8th Pay Commission may be implemented by the end of 2026 or early 2027. Right now, the government is still working on setting the terms of reference, which means deciding the rules and responsibilities of the commission. The commission itself hasn't been formed yet, and the name of the chairperson (head of the commission) has also not been announced. However, it is expected that the government may make an announcement about this soon. How much can the salary increase? Under the 8th Pay Commission, a big salary hike is expected for central government employees. According to the report: The basic salary may increase by 30 per cent to 34 per cent. The minimum basic pay, which is currently Rs. 18,000, could go up to around Rs. 30,000. The fitment factor (used to calculate revised salaries) is expected to be 1.8, which will give employees a real benefit of around 13 per cent in take-home pay. How will 8th Pay Commission impact the government's expenses? The 8th Pay Commission may have an impact of 0.6 per cent to 0.8 per cent on India's GDP. The government may have to bear an additional burden of Rs. 2.4 to Rs. 3.2 lakh crore due to salary increases. As salaries go up, spending power of employees will rise which will lead to higher demand in sectors like automobiles, consumer goods, and other daily-use items. What about savings and investments? There could be an additional increase of Rs. 1 to Rs.1.5 lakh crore in savings, especially in stocks, fixed deposits, and other investment options. The salary hike will benefit around 33 lakh government employees and a large number of pensioners. Among them, Grade C employees (lower salary bracket) are expected to benefit the most.
Economic Times
14 minutes ago
- Economic Times
Varun Beverages Q1 Results: PAT up 5% YoY despite 2% dip in revenue
PepsiCo's bottling partner, Varun Beverages, has announced its results for the first quarter ended June 2025, reporting a 5% year-on-year (YoY) surge in profit after tax (PAT) at Rs 1,325.49 crore, up from Rs 1,261.83 crore reported a year ago. However, revenue from operations slid by 2.3% YoY. ADVERTISEMENT Revenue from operations for Q1 FY26 stood at Rs 7,333.67 crore, compared to Rs 7,513 crore in the corresponding quarter of the previous financial year. Sequentially, PAT rose significantly by 81.2%, up from Rs 731.36 crore in the March quarter. In addition to the Q1 results, the company's Board of Directors has approved an interim dividend of 25% of the face value, amounting to Rs 0.50 per share. The total estimated cash outflow for this dividend distribution will be approximately Rs 169.1 company's EBITDA margin expanded by 82 basis points YoY to 28.5% in Q2 CY2025, compared to 27.7% in Q2 CY2024, despite higher fixed overheads from newly commissioned capacity at four greenfield plants in India, which are yet to contribute incremental margin expansion was supported by operational efficiencies and favourable currency movements in international markets. Gross margins remained stable at 54.5% during the quarter, while EBITDA stood steady at Rs 1,998.77 crore. ADVERTISEMENT Varun Beverages also acquired 50% of the equity share capital of Everest Industrial Lanka (Private) Limited (EIL), based in Sri Lanka. EIL is engaged in the production, manufacturing, distribution, and sale of commercial visi-coolers and related its investor presentation, the company reported a 3% YoY decline in consolidated sales volume to 389.7 million cases in Q2 CY2025, down from 401.6 million cases in the same quarter of CY2024. ADVERTISEMENT The drop in volumes was primarily attributed to unusually high and unseasonal rainfall across India during the sales volumes in India declined by 7.1%, while international volumes registered robust growth of 15.1%. South Africa alone posted a 16.1% rise, partially offsetting the overall decline. ADVERTISEMENT The company remained net debt-free during the quarter, maintaining free cash of Rs 514.90 crore. This strong liquidity position has contributed to a healthier balance sheet and ensures readiness for future growth initiatives.'Although unseasonal rains have impacted performance during the quarter, we have successfully navigated such challenges in the past and emerged stronger. We continue to strengthen our on-ground execution by adding more visi-coolers and ensuring wider product availability across retail touchpoints,' said Ravi Jaipuria, Chairman of Varun Beverages. ADVERTISEMENT On the outlook, the company stated that with robust capacities now operational, an expanding product portfolio, and a sharply focused distribution network, it is well-positioned to capture emerging opportunities and drive sustainable, long-term value creation for all the quarterly results, shares of Varun Beverages were trading 1.5% higher at Rs 493.95 on the BSE. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
14 minutes ago
- Economic Times
Ashish Kacholia portfolio stock Aeroflex Industries drops 10% after weak Q1 results
Shares of Aeroflex Industries fell as much as 9.9% on Tuesday, July 29, to Rs 185.25 on the BSE, after the company reported a sharp year-on-year decline in earnings for the June quarter, triggering a sell-off in the Ashish Kacholia-backed stock. ADVERTISEMENT The manufacturer of flexible flow solutions posted a 42.22% drop in net profit to Rs 7.17 crore for Q1 FY26, compared with Rs 12.41 crore in the year-ago quarter. Revenue for the June quarter also declined 6.04% to Rs 84.33 crore, down from Rs 89.75 crore in Q1FY25, reflecting muted demand despite its export-heavy model and global client base. Ace investor Ashish Kacholia raised his stake in Aeroflex Industries during the June quarter. His holding increased to 1.99% or 2,578,928 shares, from 1.92% or 2,478,928 shares in the March quarter. Aeroflex Industries, which makes stainless steel hoses and assemblies used across sectors such as oil & gas, chemicals and automobiles, is known for its high-quality export-focused product portfolio. However, the weak quarterly showing weighed on investor decline dragged the stock 32% below its 52-week high of Rs 271.60, touched in February 2025. It remains well above its 52-week low of Rs 145.05, hit in stock has displayed choppy movement in recent months. While it gained 10% in May and 18% in June, it has fallen 4% so far in July. Earlier in the year, the scrip saw back-to-back declines, dropping 1.3% in April, 4% in March, and a steep 27% in February. In contrast, January had seen a 10% rally. ADVERTISEMENT On a year-to-date basis, Aeroflex Industries shares are down 9.6% and have slipped 11% in the last one month. Over a one-year horizon, however, the stock is still up 19.6%. ADVERTISEMENT From a technical perspective, the stock is trading below seven of its eight key simple moving averages—including the 5-day, 10-day, 20-day, 30-day, 50-day, 150-day and 200-day SMAs, while staying just above the 100-day Relative Strength Index (RSI) stands at 53.4, indicating neutral momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 5.5, sitting above the center line but below the signal line, pointing to a potentially cautious short-term trend. Also read | Reliance Power shares down 15% in a month as ED probe drags. Can the stock reclaim Rs 70 amid volatility? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
