Q2 Results today: Canara Bank, TVS Motors, Shriram Transport Finance, Maruti Suzuki

With the July-September quarter coming to an end, companies are releasing their quarterly earnings results. Canara Bank, TVS Motors, Shriram Transport Finance and Maruti Suzuki released their Q2 results today.

Canara Bank reports a 28% dip in profit

State-run Canara Bank reported a 28% dip in profit after tax at Rs 444 Crore. The bank combined Syndicate Bank with itself on April 1^st, this year. The combined entity posted a standalone profit of Rs 616 crore after tax. Canara Bank's Managing Director and CEO L V Prabhakar said, “the bank made advanced provision for Dewan Housing Finance (DHFL), which it has declared as fraud, and also Rs 125 crore floating provision during the quarter”. In spite of making advance provisioning for the NBFC account and also a floating provision of Rs 125 crore, we have shown profit during the quarter. My intention is to make the balance sheet strong and stable," he explained.

Its gross non-performing assets (GNPA) ratio reduced to 8.23% from 10.10%. Net NPA ratio reduced to 3.42% from 5.72%. Provision coverage ratio improved to 81.48% in September 2020, from 69.0% in September 2019. Cash recovery during Q2 2020 stood at Rs 1,504 crore. Recovery from written-off accounts was at Rs 2,342 crore. Canara Bank targeted recovery of Rs 10,000 during this fiscal year. It now expects to surpass it.

TVS Motor reports a 29.37% decline in net profit

TVS Motor Company reported a 29.37% drop in consolidated net profit at Rs 181.41 crore for Q2 2020. The motor company posted a net profit of Rs 256.88 crore in the July-September quarter last year. On the other hand, revenue from operations increased to Rs 5,254.36 crore from Rs 4,960.27 crore, last year, the company said in a statement. Despite COVID-19 challenges, the company strengthened its supply chain during the second quarter of the current fiscal. The production and sales improved consistently from July onwards, it added. TVS Motors sold 2.44 lakh units. This number ramped up to Rs 2.77 lakh units in August. In September, the sales further increased to 3.13 lakh units.

Shriram Transport Finance Co Ltd reports a 10.5% decline

Shriram Transport Finance Co Ltd (STFC) reported a 10.5%% decline in net profit at Rs 684.56 crore in the July-September quarter of the fiscal year 2020. The non-banking finance company had posted a net profit of Rs 765.05 crore in the same quarter last year. Total income rose by 4.68% to Rs 4351.26 crore from Rs 4156.92 crore during the same period in 2019. However, the net interest income fell 1.67% to Rs 2,021.86 crore from Rs 2,056.11 crore in the year-ago quarter.

STFL said that the COVID-19 pandemic had an adverse effect on its business operations. It is considering an additional expected credit loss (ECL) provision on loans of Rs 416.65 crore and Rs 1,372.80 crore due to the pandemic. "As at September 30, 2020, additional ECL provision on loan assets as management overlay on account of COVID-19 stood at Rs 2,282.44 crore," it said. “The company's management is continuously monitoring the situation and the economic factors affecting the operations of the company”, it added.

Maruti Suzuki reports 2% net profit in Q2

Maruti Suzuki reported a 2% rise in the consolidated net profit for the quarter ended September at Rs 1,419 crore. The profit stood at Rs 1,391 crore in the corresponding quarter in 2019. Revenue from operations increased by 10.34% to Rs 18,755 crore on a YoY basis. The company’s sales in the domestic market were up 18.6% to 3.7 lakh units. High sales volumes lead to improved capacity utilization, said the company's press release. Maruti Suzuki India said it “expects the pent-up demand for cars to last at least till December this year.”