Share the post "Tamilnad Mercantile Bank announced Financial Results for Q2 2024-25"
Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Revenue over the Year and quarter: The company experienced a substantial growth of 10.61 % in the past year, substantial increase in revenue by 4.39 %.
- Profit over the Year and quarter: Significant improvement in profitability for Tamilnad Mercantile Bank Limited. Notable increase of 10.85 % in net profit Year to Year, Tamilnad Mercantile Bank Limited’s profitability increased by 5.53 % in this quarter.
- EPS over the Year and quarter: EPS increased by 10.89 % Year to Year. EPS increased by 5.57 % in previous quarter. Positive impact on shareholders.
- Gross NPA % over the Year and quarter: Gross NPA decreased by -4.86 % this quarter. Leading to a -19.41 % reduction over the past year.
- Net NPA % over the Year and quarter: Net NPA decreased by -29.23 % this quarter. Contributing to an overall annual reduction of -53.54 %.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Revenue | Rs. 1209.16 Cr | Rs. 1281.15 Cr | Rs. 1337.41 Cr | + 4.39 % | + 10.61 % |
Interest | Rs. 676.43 Cr | Rs. 714.59 Cr | Rs. 741.35 Cr | + 3.74 % | + 9.6 % |
Expenses | Rs. 346.96 Cr | Rs. 416.88 Cr | Rs. 423.26 Cr | + 1.53 % | + 21.99 % |
Financing Profit | Rs. 185.77 Cr | Rs. 149.68 Cr | Rs. 172.8 Cr | + 15.45 % | -6.98 % |
Financing Margin % | 15.36 % | 11.68 % | 12.92 % | + 1.24 % | -2.44 % |
Other Income | Rs. 156.06 Cr | Rs. 233.72 Cr | Rs. 227.47 Cr | -2.67 % | + 45.76 % |
Depreciation | Rs. 0 Cr | Rs. 0 Cr | Rs. 0 Cr | 0 % | 0 % |
Profit before tax | Rs. 341.83 Cr | Rs. 383.4 Cr | Rs. 400.27 Cr | + 4.4 % | + 17.1 % |
Tax % | 19.99 % | 25.07 % | 24.26 % | -0.81 % | + 4.27 % |
Net Profit | Rs. 273.51 Cr | Rs. 287.29 Cr | Rs. 303.18 Cr | + 5.53 % | + 10.85 % |
EPS in Rs | Rs. 17.27 | Rs. 18.14 | Rs. 19.15 | + 5.57 % | + 10.89 % |
Gross NPA % | 1.7 % | 1.44 % | 1.37 % | -0.07 % | -0.33 % |
Net NPA % | 0.99 % | 0.65 % | 0.46 % | -0.19 % | -0.53 % |
Today, we’re looking at Tamilnad Mercantile Bank Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year revenue growth of 10.61 %. However, it did see a marginal increase of 4.39 % from the previous quarter. Interest expenses surged remarkably by 3.74 % from the previous quarter, yet the year-over-year increase remains at a moderate 9.6 %. Expenses ticked up slightly by 1.53 % quarter-on-quarter, aligning with the annual rise of 21.99 %.
Financing profit, while down -6.98 % compared to last year, faced a quarter-on-quarter increase of 15.45 %, signaling a short-term expansion in margins. The Financing Margin % contradicts this narrative, showing weakness on an annual basis with a decrease of -2.44 %, but an expansion of 1.24 % sequentially. Other income fell by -2.67 % compared to the last quarter, despite an annual growth of 45.76 %. Profit before tax grew annually by 17.1 % but saw an increase from the preceding quarter by 4.4 %. Tax expenses as a percentage of profits increased slightly by 4.27 % compared to last year, With a more notable quarter-on-quarter decrease of -0.81 %.
Net profit rose by 10.85 % year-on-year, but experienced a 5.53 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 10.89 % but a quarterly rise of 5.57 %. The Gross NPA % indicates concerning trends with a quarterly drop of -0.07 % and an annual decline of -0.33 %, pointing to weakening recovery efforts and a deteriorating credit environment. In contrast, the Net NPA% exposes underlying challenges, showing a quarterly decrease of -0.19 % and an annual decline of -0.53 %, reflecting persistent vulnerabilities in asset quality and risk management. In summary, Tamilnad Mercantile Bank Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Revenue | Rs. 1209.16 Cr | Rs. 1281.15 Cr | Rs. 1337.41 Cr | + 4.39 % | + 10.61 % |
Interest | Rs. 676.43 Cr | Rs. 714.59 Cr | Rs. 741.35 Cr | + 3.74 % | + 9.6 % |
Expenses | Rs. 346.96 Cr | Rs. 416.88 Cr | Rs. 423.26 Cr | + 1.53 % | + 21.99 % |
Financing Profit | Rs. 185.77 Cr | Rs. 149.68 Cr | Rs. 172.8 Cr | + 15.45 % | -6.98 % |
Net Profit | Rs. 273.51 Cr | Rs. 287.29 Cr | Rs. 303.18 Cr | + 5.53 % | + 10.85 % |
EPS in Rs | Rs. 17.27 | Rs. 18.14 | Rs. 19.15 | + 5.57 % | + 10.89 % |
Gross NPA % | 1.7 % | 1.44 % | 1.37 % | -0.07 % | -0.33 % |
Net NPA % | 0.99 % | 0.65 % | 0.46 % | -0.19 % | -0.53 % |
In reviewing Tamilnad Mercantile Bank Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Revenue saw a robust 10.61 % year-on-year growth, however, there was a minor increase of 4.39 % from the previous quarter. Interest expenses climbed by 3.74 % quarterly and sharply by 9.6 % annually, demonstrating effective cost control and improved debt management. Expenses rose by 21.99 % compared to the previous year, with a 1.53 % increase quarter-on-quarter. Financing Profit dropped by -6.98 % annually, and saw a 15.45 % increase from the last quarter.
Net Profit showed yearly increase of 10.85 %, and experienced a 5.53 % increase from the previous quarter. Earnings Per Share (EPS) rose by 10.89 % annually, however rose by 5.57 % compared to the last quarter. Gross NPA% decreased by -0.07 % quarterly and fell by -0.33 % annually, showcasing improvements in asset quality. Net NPA% worsened by -0.19 % quarterly and decreased by -0.53 % annually, showcasing effective recovery and risk management strategies. In essence, while Tamilnad Mercantile Bank Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
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