Stock market expert SP Tulsian maintains a positive bias on IndusInd Bank, saying that there is nothing disappointing in its Q2 numbers.
Private lender IndusInd Bank on Thursday reported a 50 percent increase in its September-quarter net profit from a year ago due to higher net interest and other income. Net profit for the quarter stood at
Rs 1,383.37 crore, up 50.33 percent, from Rs 920.25 crore a year ago. However, on a quarter-on-quarter basis, net profit declined 3.4 percent.
"I do not know whether there is any meaning in analysing Q2 numbers because if I say that Q2 numbers are good then, we will say that we have apprehension and concerns on Q3. Except for the credit growth of maybe sub 2 percent on a sequential basis, I do not find anything wrong in the results. In fact the best part is that the tax rate has been provided for Q2 at 25 percent, for whole of FY19 it was at 34 percent -- 33.7 percent for H1, the current year H1 it has worked out at 30 percent. So, in Q1 they had 33 percent, in this Q2 they have provided 25.7 percent. So, effectively the average tax rate is 30 percent. However if you go by the core numbers, I do not find any disappointment," Tulsian said.
On Bharti Airtel, he said: "If I purely focus on IUC then I think this is just a temporary phenomenon because as such if I go by the rules these were to go by December 31, 2019. If I focus purely on the Reliance Industries, I am not keeping too positive view on the other two incumbents -- Bharti Airtel and Vodafone Idea. However, if you take a call on Reliance Industries, probably it is an accepted fact that the company will not go for war now on the pricing front, pricing front seems to have bottomed out. So, obviously if Reliance Industries starts raising any kind of tariff, whether that is on IUC or maybe on any other thing, that will definitely be seen positive for the other two players."
The market expert says the IUC issue will impact Vodafone-Idea more going forward because out of their total revenue of Rs 45,000 crore, 20 percent was coming in the form of IUC. "Now one has to wait to see the additions which we have been seeing in the case of Reliance Jio because the other two players have been losing subscribers. In fact there was huge exiting of customers from Vodafone Idea but in Bharti Airtel it was more or less constant. But Reliance Jio was seen to be adding aggressively. However I will not be giving much credence to this IUC but can only draw an indication that probably the tariff war on the telecom front seems to have come to an end and Reliance Jio will not aggravate it further," he opined.
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