Why decrease in net profit margin

MUMBAI: Reliance Jio Infocomm has reported a 62.5 per cent increase in net profit for the October-December period, helped by tariff raises that aided its average revenue per user (ARPU) rebound from seven straight quarters of decline. The telco, led by Mukesh Ambani, on Friday said profit for the quarter rose to Rs 1,350 crore compared with Rs 831 crore a year ago. The market had estimated profit to be more than Rs 1,300 crore. Profit was up 36.4 per cent from the preceding quarter. It is the company’s ninth profitable quarter in a row. But charging 0.6 paise a minute for calls to rival networks cost the telco some 22 million subscribers, dragging its net additions down to 14.8 million from 24 million in the previous quarter, the company said, adding that it had cleaned up inactive, mainly voice users. Jio’s average monthly user data and voice consumption also fell sequentially, which Jio’s strategy head Anshuman Thakur said was mainly due to an expanding user … [Read more...] about Jio net profit surges 63% to Rs 1,350 cr in Dec quarter

HDFC Bank’s net profit grew 20% in the third quarter ended December to Rs.5586 crores from Rs.4642 crores a year ago, on the back of growth in net interest income (NII) and treasury gains, results announced on Saturday showed. NII, which is the difference interest gained on loans and interest paid on deposits, grew by 22% to Rs.12,577 crore from Rs.10,314 crore a year ago, driven by loan growth of 24% and net interest margin (NIM) of 4.3%, the bank said. Asset quality remained largely stable with gross non-performing asset (GNPA) reporting a marginal increase to 1.38 per cent in the December quarter, against 1.33 per cent in the September quarter and 1.29 per cent a year ago. Net NPA remained at 0.42%, a two basis point dip from year ago quarter’s 0.44%. One basis point is 0.01 percentage point. The bank's total provisions increased to Rs.2211 crore, a spike of 64% from last year’s Rs.1,351 crores. Total provisions included Rs 1451 crore of floating provisions. … [Read more...] about HDFC Bank’s Q3 net profit jumps 20% YoY

MUMBAI: HDFC Bank Ltd, India's largest private lender, on Saturday posted a nearly 33% jump in standalone net profit for the quarter to December helped by growth in its loans portfolio. HDFC Bank reported a net profit of Rs 7,416 crore ($1.04 billion) for its third quarter, up from Rs 5,586 crore a year earlier, it said in a regulatory filing. That topped the Rs 7,059 crore expected by analysts on average, Refinitiv Eikon data showed. Gross bad loans increased to 1.42% of total loans from 1.38%. The bank's net interest margin (NIM), an indicator of profitability, remained stable at 4.2%. At a time when the industry has seen subdued loan growth, the bank saw its grow 19.9%. Deposits grew by 25.2%, the bank said. The bank remains well capitalised, with a capital adequacy ratio of 18.5% at the end of the quarter, well above the regulatory requirement. … [Read more...] about HDFC Bank Q3 net profit up 33% on loan growth, beats estimates

HDFC Bank on Saturday said its third-quarter net profit grew 20.3 per cent year-on-year on the back of higher net interest income and other income. The lender reported a net profit of Rs 5,585.85 crore for the quarter ended December 2018 against Rs 4,642.60 crore in the same quarter last year. An analyst poll by ETNow projected a net profit of Rs 5,603 crore in Q3 FY19. Net interest income (NII) jumped 21.93 per cent YoY to Rs 12,576.75 crore during the quarter under review. NII is the difference between interest earned on loans and that paid on deposits. Asset quality of HDFC Bank remained stable with gross non-performing assets (NPAs), as a percentage of total advances, came in at 1.38 per cent in the December quarter, against 1.33 per cent in the September quarter and 1.29 per cent a year ago. Provisions increased by 63.64 per cent YoY to Rs 2,211.53 crore, against Rs 1,351.44 crore in the year-ago quarter. Total balance sheet size as of December 31 stood at Rs 1,168,556 … [Read more...] about HDFC Bank’s Q3 net profit jumps 20% YoY to Rs 5,586 crore; asset quality stable

NEW DELHI: Telecom operator Reliance Jio on Friday posted a 62.5% jump in its net profit at Rs 1,350 crore in the three months to December 2019, as it added more users and saw per subscriber earning rising on back of an increase in tariff. The company's strong performance comes at a time when its rivals are staring at billions of dollars in statutory dues, leading to record losses in the previous quarter. Reliance Jio had posted a net profit of Rs 831 crore in the corresponding quarter of 2018-19. The company recorded an increase of 28.3 per cent in its operating revenue at Rs 13,968 crore compared to Rs 10,884 crore in the year-ago period. "Jio has continued on its unprecedented growth journey receiving overwhelming customer response for best in class mobile connectivity services. Jio is also determined to redefine the wireline infrastructure, home entertainment and enterprise market in India with its FTTx services which bundle best-in-class connectivity with bouquet of digital … [Read more...] about Reliance Jio net profit jumps 62.5% to Rs 1,350 crore in December