SBI Cards Q4FY23 PAT up 2.7% at Rs596 crore due to spike in impairment costs
SBI Cards and Payment Services Ltd reported 29.86% growth in net revenues for the March 2023 quarter at Rs3,917 crore. The revenues were up by 7.12% on a sequential basis and the sequential pressure came from higher impairment costs and also from interest costs. The company reported a sharp spike in fee income and interest income in the quarter.
The finance costs have gone up sharply by 90% yoy and that has put pressure on the profitability of the company. Also, the provisions for impairment in the quarter were sharply higher from Rs393 crore to Rs630 crore. Both these factors put pressure and pulled down the profit growth to almost flat levels in the quarter on a yoy basis.
Financial highlights for Mar-23 compared yoy and sequentially
| SBI Cards | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 3,917 | ₹ 3,016 | 29.86% | ₹ 3,656 | 7.12% |
| Operating Profit (Rs cr) | ₹ 800 | ₹ 779 | 2.62% | ₹ 684 | 16.85% |
| Net Profit (Rs cr) | ₹ 596 | ₹ 581 | 2.69% | ₹ 509 | 17.08% |
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| Diluted EPS (Rs) | ₹ 6.28 | ₹ 6.11 |
| ₹ 5.36 |
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| OPM | 20.42% | 25.84% |
| 18.72% |
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| Net Margins | 15.23% | 19.26% |
| 13.93% |
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Gross NPAs of the credit cards business has increased marginally from 2.22% to 2.35% on a yoy basis while the net NPAs have also gone up yoy from 0.78% to 0.87%, showing strain in card collections in the quarter. The board has declared a dividend of Rs2.50 per share on a face value of Rs10 and this is subject to shareholder approval.