SBI Cards and Payment Services Ltd Q2FY21 consolidated PAT at Rs. 206.14 crore

SBI Cards and Payment Services Ltd has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.2512.72 crores during the period ended September 30, 2020 as compared to Rs.2192.94 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.206.14 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.393.29 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.2.17 for the period ended September 30, 2020 as compared to Rs.4.15 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 2512.72 crs	₹ 2192.94 crs	14.58%
Net Profit	₹ 206.14 crs	₹ 393.29 crs	-47.59%
EPS	₹ 2.17	₹ 4.15	-47.71%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.2512.72 crores during the period ended September 30, 2020 as compared to Rs.2376.20 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.206.14 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.381 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.2.17 for the period ended September 30, 2020 as compared to Rs.4.09 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 2512.72 crs	₹ 2376.20 crs	5.75%
Net Profit	₹ 206.14 crs	₹ 381 crs	-45.9%
EPS	₹ 2.17	₹ 4.09	-46.94%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.4705.66 crores during the 6 months period ended September 30, 2020 as compared to Rs.4678.94 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.599.44 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.726.60 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.6.32 for the 6 months period ended September 30, 2020 as compared to Rs.7.79 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 4705.66 crs	₹ 4678.94 crs	0.57%
Net Profit	₹ 599.44 crs	₹ 726.60 crs	-17.5%
EPS	₹ 6.32	₹7.79	-18.87%

Performance Highlights Q2'FY21

- Growing revenue from operations: grew 5% YoY for Q2 FY21 vs Q2 FY20
- Pre-provision earnings increased 37% YoY during Q2 FY21 vs Q2 FY20
- Additional Management Overlay provision of ₹ 268Cr in Q2 FY21; Total Management overlay provision at ₹ 758 Cr as on Sep'20
- Profit after tax at ₹ 206 Cr for Q2 FY21
- ROAA at 3.4% and ROAE at 14.1% for Q2 FY21
- Capital Adequacy Ratio at 25.3% (Q2 FY20 : 19.0%); Tier 1 at 21.0% (Q2 FY20 : 14.8%)

Key Metrics

- Card-in-force grew by 16% to 1.10 Cr as of Q2 FY21 vs 0.95 Cr as of Q2 FY20
- Spends at ₹29,590 Crore for Q2 FY21 vs ₹33,176 Cr for Q2 FY20
- Market share Q2 FY21 (available till August) - Card-in-force at 18.7% (Q2 FY20 : 18.0%); Spends at 20.5% (Q2 FY20 : 18.6%)
- Receivables grew by 4% to ₹23,978 Crore as of Q2 FY21 vs ₹23,038 Cr as of Q2 FY20
- Positive operating leverage; Cost to Income ratio improved by 1,030bps to 49.3% for Q2 FY20 vs 59.6% for Q2 FY20
- GNPA at 4.29% as of Q2 FY21 vs 2.33% as of Q2 FY20
- New accounts volume has increased to 688K accounts in Q2 FY21 compared to 288K in Q1 FY21. The sourcing has been steadily picking up pace and in the month of Sep'20 the daily average new accounts acquisition was at 98% of pre-COVID levels.
- Retail Spends in Q2 FY21 have increased by ~50% as compared to Q1 FY21. Retail spend for Q2 FY21 is at 90% of pre-Covid (Dec'19- Feb'20) levels.

Balance Sheet as of September 30, 2020

- Total Balance Sheet size as of September 30, 2020 was ₹24,313 Cr as against ₹24,466 Cr as of September 30, 2019.

- Total Gross Advances (Credit card receivables) as of September 30, 2020 were ₹23,978 Cr, as against ₹23,038 Cr as of September 30, 2019.

- Net worth as of September 30, 2020 was ₹5,949 Cr as against ₹4,388 Cr as of September 30, 2019.

Asset Quality

The Gross non-performing assets were at 4.29% of gross advances as on September 30, 2020 as against 2.33% as on September 30, 2019.

Capital Adequacy

As per the capital adequacy norms issued by the RBI, Company's capital to risk ratio consisting of tier I and tier II capital should not be less than 15% of its aggregate risk weighted assets on - balance sheet and of risk adjusted value of off-balance sheet items. As of September 30, 2020, Company's CRAR was 25.3% compared to 19.0% as of September 30, 2019.

The tier I capital in respect of an NBFC-ND-SI, at any point of time, is required to be not be less than 10%. Company's Tier I capital was 21.0% as of September 30, 2020 compared to 14.8% as of September 30, 2019.

Source : Equity Bulls

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