Stocks In News: JSW Energy, Bandhan Bank And More

JSW Energy

JSW Energy, a utility company, has reported a consolidated profit of Rs 290 crore for the quarter ending June FY24. However, this figure represents a significant decline of 48.3% compared to the previous year. The decline can be attributed to higher finance costs and a high base due to an exceptional gain of Rs 120 crore in Q1FY23. Despite healthy operating performance, the company faced challenges that impacted its profitability. Revenue from operations also experienced a year-on-year decline of 3.25%, amounting to Rs 2,928 crore during the quarter. Although there were incremental revenue contributions from Mytrah and renewable capacity additions, this growth was offset by lower realization in thermal assets, primarily due to a decline in coal prices.

On a positive note, JSW Energy’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 19.4% YoY to Rs 1,224 crore. This growth was driven by robust EBITDA contributions from the company’s renewable assets. Additionally, the margin expanded by 792 basis points YoY to 41.8% in Q1FY24, aided by lower fuel costs.

Bandhan Bank

Moving on to Bandhan Bank, a Kolkata-based private sector lender, the bank reported a profit of Rs 721 crore for the June FY24 quarter. However, this figure represents an 18.7% YoY decline. The bank experienced lower net interest income and pre-provision operating profit, but provisions and contingencies were down 6.3% YoY. Net interest income dropped by 0.9% YoY to Rs 2,491 crore during the quarter, leading to a decline in net interest margin by 70 basis points to 7.3% in the same period.

In terms of asset quality, Bandhan Bank faced challenges as gross non-performing assets (NPA) rose by 189 basis points sequentially to 6.76%. The net NPA also increased by 101 basis points QoQ to 2.18% in Q1FY24.

Dr Reddy’s Laboratories

In other news, Dr Reddy’s Laboratories, a major pharmaceutical company, has entered into a security subscription and shareholders’ agreement for the consumption and supply of renewable energy. The agreement involves TEQ Green Power XI Private Limited and O2 Power SG Pte Ltd, with the investment directed towards the special purpose vehicle O2 Renewable Energy IX Private Limited. Dr Reddy’s Laboratories will hold a 26% stake in the SPV, while the remaining portion is owned by TEQ Green Power XI.

State Bank of India

Lastly, the State Bank of India, the largest lender in the country, has increased its marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) effective from July 15. As a result, the MCLR-based rates will now range between 8% and 8.75%

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