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FINANCIAL RESULT ANALYSIS TRADING IDEA

WWW.SHAREPATI.COM
January 10, 2012

Analyst: Lokesh Kumar

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INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA

January 10, 2012 Flat performances with confidence

INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

PERFORMANE OVERALL RESULT PROFITS SALES

SHAREPATI VIEW FLAT POSITIVE FLAT GOOD

COMPARING WITH MARKET EXPECTATION AT PAR FLAT FLAT

Trading Idea
Recommendation BUY

Recommendation date 10-01-2012 Current market price First Target Final Target Downside/Upside Time frame 270 300 350-400 10 - 20% 2-3 MONTHS

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SHAREPATI.COM ANALYSIS

Keeping in view of past six months credit and liquidity situation, todays IndusInd bank results are satisfactory in nature. The bank posted a flat growth on and average of 5-6% in all aspects on QOQ basis which is slightly below than our expectation. We expected a 15% of growth.
INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

It has registered a growth of Rs 1654.86 crore in total income when compared to 1563.07 crore on QOQ basis and 1110.86 crore on YOY basis is flat positive growth Employee cost and other operational expenses up by 9% and 5% on QOQ basis and 29% and 30% on YOY basis which is in line with expectation. is OK Interest cost up by 6% on QOQ and 74% on YOY basis is concern which is going to comedown in H2 of 2012. Tax expenses up by 8% on qoq basis and 24% on YOY basis is showing it sound business environment. Its net profit up by 205.96 crore when compared 193 crore on QOQ basis is flat, and 34% on YOY basis. Capital Adequacy ratio is dip by 6% on QOQ basis and 14% on YOY basis is area of concern and is unexpected. Earnings per share are in flat move mode up by 7% on QOQ basis and 33% YOY basis is good sign. Gross and Net NPA is shrunk by 6% on QOQ basis and 16% YOY basis is a positive sign which shows its management ability of handling asset portfolio and industry NPA moving northwards.

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Return on asset: there was a nil growth on QOQ basis and it is satisfactory that it has not shown any negative growth. Net Interest Income is under pressure which is dip by 6% on QOQ basis and 22% on YOY basis is quite concern.

Net Profit Margin is flat. It is quite disappointing to see a -10% compared in Q3 of 2010 a year back. Total segment revenue has shown a flat growth as we mentioned above up only by 6% on QOQ basis and 52% on YOY basis.
INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

Consumer finance banking and retail banking growth quite impressive. Book value per share stood at 94.55 Management view of positive business growth forecasting is positive. Branch expansion has increased to 365, this is certainly will add revenue to its wallet. We are in view that as an investor one can buy a stock for the target of Rs 290 from 1 month perception.

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Unaudited Financial Results for the quarter ended December 31, 2011
(Rs. in crores) Quarter ended ended 31-12-2011 (Unaudited) 30-09-2011 (Unaudited) 31-12-2010 (Unaudited) 31-12-2011 (Unaudited) ended 31-12-2010 (Unaudited)

Change
QOQ YOY

INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

Interest Earned (a)+(b)+(c)+(d) Interest/discount on advances/bills Income on Investments Interest on balances with Reserve Bank of India and other inter banks funds Others

1,389.74

1,323.86

914.91

3,878.18

2,540.52

5% 4% 10% -22% -34% 11% 6% 6% 6% 9% 5% 6%

52% 50% 57% -20% 14214% 35% 49% 74% 29% 29% 30% 59%

(a) (b) (c)

1,082.69 293.58 3.45

1,037.10 267.22 4.45

723.08 187.43 4.33

3,020.48 808.18 12.14

2,004.90 527.07 7.16

(d) 2 3 4 5

10.02 265.12 1,654.86 959.09 346.53 126.12 220.41

15.09 239.21 1,563.07 904.67 325.42 115.22 210.20

0.07 195.95 1,110.86 551.91 267.77 97.95 169.82

37.38 719.73 4,597.91 2,638.33 965.64 352.05 613.59

1.39 532.03 3,072.55 1,552.11 736.80 282.43 454.37

Other Income TOTAL INCOME (1+2) Interest Expended Operating Expenses (i)+(ii) Employees Cost Other Operating Expenses TOTAL EXPENDITURE EXCLUDING PROVISIONS

(i)

(ii)

AND CONTINGENCIES (4+5) OPERATING PROFIT BEFORE PROVISION AND

1,305.62

1,230.09

819.68

3,603.97

2,288.91

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7 8 9 10

CONTINGENCIES (3-6) Provisions (other than tax) and Contingencies Exceptional items Profit(+) / Loss(-) from ordinary Activities before Tax -

349.24 42.83 -

332.98 46.97 -

291.18 56.19 -

993.94 134.39 -

783.64 161.64

5% -9%

20% -24%

306.41 11 12 Tax Expense Net Profit(+) / Loss(-) from ordinary Activities after Tax (10-11) 205.96 100.45

286.01 92.92

234.99 81.13

859.55 280.32

622.00 216.44

7% 8% 7%

30% 24% 34%

INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

193.09

153.86

579.23

405.56

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Balance Sheet
(Rs crs)

Q3FY12

Q3FY11

Y-o-Y (%)

Q2FY12

Q-o-Q (%)

Capital & Liabilities Capital Reserves and Surplus

INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

467 4,168 40,558 8,137 1,803 55,133

465 3,517 30,663 4,981 1,874 41,500

0% 19% 32% 63% -4% 33%

467 3,962 38,367 5,985 1,675 50,456

0% 5% 6% 36% 8% 9%

Deposits Borrowings Other Liabilities and Provisions Total Assets Cash and Balances with RBI Balances with Banks Investments Advances Fixed Assets Other Assets Total Business (Advances + Deposit)

2,960 876 15,362 32,426 635 2,874 55,133 72,984

2,213 557 11,868 25,001 589 1,272 41,500 55,664

34% 57% 29% 30% 8% 126% 33% 31%

3,216 619 14,286 30,135 624 1,576 50,456 68,519

-8% 42% 8% 8% 2% 82% 9% 7%

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INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

Slight dip in NIM

Neutral growth in Return on asset

Return on equity improved

Cost to income ratio quite higher

NPAs are encouraging

Revenue generation per Employee at par

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INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

Current account negative growth

Savings bank account positive growth

Overall performance of IndusInd Bank is flat positive, in long term basis we expect this stock will test the range of 350-375, i.e. three month perceptive. We recommend this stock as buy at every decline. - By

Sharepati team.

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INDUSINDBANK Q3 RESULT ANLYSIS AND TRADING IDEA | 1/10/2012

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