EUR 120.00 For Business Accounts Only

MOSL: Morning India (05/August/19): 1. HDFC (Healthy retail growth); 2. ITC; 3. SBI; 4. Bharti Airtel; 5. Nestle India; 6. Power Grid Corp; 7. LIC Housing Fin; 8. Aditya Birla Capital; 9. Dalmia Bharat; 10. Exi

MOrning India (05/August/19): 1. HDFC (Healthy retail growth); 2. ITC; 3. SBI; 4. Bharti Airtel; 5. Nestle India; 6. Power Grid Corp; 7. LIC Housing Fin; 8. Aditya Birla Capital; 9. Dalmia Bharat; 10. Exide Inds

 

Today’s top research idea

HDFC: Healthy retail growth; Core operating performance in line

• HDFC reported PAT of INR32b (+46% YoY, 15% beat), driven by lower opex (32% below estimate), higher assignment income (+2x YoY to INR3b) and a lower tax rate (19% v/s our estimate of 26%). AUM grew 3% QoQ (+13% YoY) to INR4.8t driven by individual loans (up 4%QoQ/17% YoY to INR3.6t). On the other hand, corporate segment AUM grew merely by 2% YoY.
• Core NII increased 11% YoY, in line with loan book growth. Reported spreads were largely stable at 2.3%. GNPL ratio rose 10bp QoQ to 1.3%, driven by ~34bp increase in the corporate GNPL ratio to 2.7%. A large aviation account worth INR4b slipped during the quarter.
• The company wrote-off loans worth INR2b during the quarter, 50% of which were toward a stressed infra group trust account.

Piping hot news

Monsoon rains pick up, help revival of kharif crop planting

A sharp pick up in monsoon rains in July has led to a rapid revival of summer crop planting across the country. The rainfall deficit, which was around 30% at the start of July, has now narrowed to 9%, boosting prospects of a good agricultural output. The crop area, which was down 6.4% last week compared with a year earlier, has slipped marginally to 6.6% as on Friday, but this is likely to be covered by next week with the weather office predicting above normal rains in August wiping out all the shortfall.