Credit Card & Allied Services industry of India’s SBI Cards and Payment Services Ltd stumbles due to coronavirus’ attack. SBI Card‘s struggle to exceed the previous quarter’s sales impacted its share unsteady movement. Experts fear result may worsen with the state’s situation in battling Covid-19.
SBI Card stock’s rise limps, still projects improvement
The Economic Times India reported SBI Card Monday’s trade real-time stock underwent up and downs. The scrip opened at 755.0, and hit the peak at Rs 768.6, while the lowest maintained at Rs 755.0. Economic Times India further elaborates SBI Cards and Payment Services Ltd experienced a 52-week high of Rs 769.00 and a 52-week low of Rs 495.25.
Coronavirus’ impact on SBI Card’s revenue
NDTV reported as of the fourth quarter of the financial year 2019-20, the company’s operating revenue records a total of Rs 2,433.24 crore. Compared to last year’s record in the same quarter at Rs 1983.26 crore, the result marks a 22.69% year-on-year increase. Revenues are highly impacted by Rs 90 crore fee reversal due to the impact of coronavirus. Analysts suggest investors focus on Covid-19 impact and the moratorium figures for the next period of time.
SBI Card’s net profit free-fall: lost 66.41% compared to last year
Subsequently, SBI Card’s net profit for the latest quarter stood at Rs 83.54 crore. Compared to last year’s net profit of Rs 249 crore, this is a steep 66.41% decline. However, The Hindu Businessline reports the net profit for fiscal 2020 signs an incline at Rs 1,245 crore against Rs 865 crore in fiscal 2018-2019. SBI Card condemns Covid-19 impact upon this record. SBI Card claims without the pandemic, net profit fiscal 2020 would have hit Rs 1,662 crore.
Meanwhile, The Economic Times India reports the stock of SBI Card was traded at P/E multiple of 93.28 and a price-to-book ratio of 13.39. The high P/E ratio indicates investors’ willingness to bet higher on SBI Card’s growth. Price-to-book value, on the other hand, shows the company’s inherent value and the risk they are willing to take for the business’ idle growth.
