Momentum continues but outlook cautious: Q4FY09 Result Review – ULJK Research
Axis Bank has reported a better than expected net profit of Rs.5.81 bn in Q4FY09, a growth of 60.9% on a YoY basis and 16.1% on a QoQ basis.For the FY09, the net profit stands at Rs.18.15 bn, a growth of 69.5% on YoY. The profit during the quarter was driven by the strong growth in other income, predominantly trading income. Trading income for the quarter stands at Rs.166.16mn compared to Rs.44.64mn last year, a growth of 272%.
Axis Bank has restructured loans worth Rs.6.6 bn during the quarter, taking the total restructured loans to Rs.16.25bn in FY09, representing 1.74% of the gross customer assets. CASA deposits constitute 43% of the total deposits, reflecting an improvement from the Q3FY09 level. The bank has significantly reduced its non?funded exposure to the Gems & Jewellery segment.
The stock is currently trading at 1.5x P/BV for FY10E book value of Rs.325. We maintain “BUY” on the stock with a target price of Rs.567 discounting the FY10E book value by 1.7x.
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