SBI Cards and Payment Services Limited — Important, 28-01-2025: Financial Result Updates

SBI Cards and Payment Services Limited has announced a board meeting to discuss unaudited financial results for the quarter and nine months ended December 31, 2024.

Total revenue from operations reached ₹4,618.69 crore, marking an increase from the previous quarter, driven by robust interest income and stable fees and commission income. Interest income rose to ₹2,399.10 crore, while fees and commissions contributed ₹2,024.89 crore, highlighting strong consumer demand and service uptake.

Net profit after tax was ₹383.23 crore, a decrease from ₹549.08 crore in the same quarter last year, resulting in lower Earnings Per Share (EPS) of ₹4.03 compared to ₹5.78. Profitability was impacted by rising operational costs, particularly in finance costs and impairment expenses, which soared to ₹1,313.14 crore, reflecting cautious credit risk management amidst changing market conditions.

Operational costs surged by 5.93% from the previous quarter, primarily due to increased finance costs and higher provisions for bad debts, indicating ongoing challenges in maintaining cost efficiency.

The balance sheet remains healthy, with a debt-to-equity ratio of 3.24. The company's Gross NPA stands at 3.24%, slightly up from 2.76% in the prior year, reflecting the need for continued vigilance in credit quality.

Strategically, the focus should remain on enhancing customer engagement and managing operational efficiencies to navigate the competitive landscape.

Based on the financial performance and emerging risks, a hold position may be prudent as the company balances growth with credit quality management.