Fundamentals Study (Long term), [28.07.

20 21:40]

*Nestle India Q2 Results: Profit Rises On Lower Taxes Despite Covid-19 Disruptions*

Q2CY20 Q2CY19

Revenue 3050 3000

EBITDA 747 712

Net profit 487 438

EBITDA margin 24.5% 23.7%

Nestle India's domestic sales were up 2.6% over year ago at Rs 2,908 crore, while its exports were
down 8.8% at Rs 134 crore.

The maker of Maggi instant noodles and Kit Kat chocolate saw its revenue rise 1.7% year-on-year to
Rs 3,050 crore in the April-June period, according to an exchange filing.

Revenue rose marginally even as lower tax aided profit in the quarter ended June, a period when the
Covid-19 lockdown disrupted everything from sourcing and production to supply.

The past three months have witnessed volatility, uncertainty and stresses that we had never
imagined before nor experienced,” Suresh Narayanan, chairman and managing director at Nestle
India, said in a statement accompanying the results. "This led to disruptions across the value chain of
the company that has impacted our results, though we have built back momentum strongly as we
ended the quarter.

View: Average result and slightly lower than expectation. Lower Tax support the bottom line.

Fundamentals Study (Long term), [28.07.20 21:40]

*RBL Bank Q1 Results: Net Profit Falls 48% As Provisions Rise*

Private sector lender RBL Bank Ltd. saw its first quarter net profit fall 47.5%, as it made higher
provisions to protect its balancesheet against the impact of the Covid-19 pandemic.
The bank reported a net profit of Rs 141 crore in the quarter ended June 30, as compared with Rs
267 crore a year ago. Net interest income, or the bank’s core income, rose 27.45% year-on-year to
Rs 1,041 crore.

*Provisions & Asset Quality*

The bank set aside Rs 500 crore in provisions, as compared with Rs 197 crore in the same period a
year ago. RBL Bank made additional provisions worth Rs 240 crore to cover for any potential losses
from the pandemic, it said in a statement. The bank now holds cumulative provisions worth Rs 350
crore toward Covid-related losses, it said.

The bank’s gross non-performing asset ratio fell to 3.45%, as compared with 3.62% as on March 31.
In absolute terms, gross NPAs fell 6.7% quarter-on-quarter to Rs 1,992 crore. The net NPA ratio fell
to 1.65% for the three months ended June, compared to 2.05% in the previous quarter.

*Loans under moratorium for the bank fell to 13.7% of the loan book, down from 33% at the end of
the previous quarter*

Advances & Deposits During the quarter, RBL Bank saw advances decline while deposits inched up.
Advances stood at Rs 56,683 crore, down 0.3% over a year ago.

Deposits rose 1.5% compared to a year ago to Rs 61,736 crore.

Among credit card customers, 22% of the book by value and 11% of customers by number are
currently under moratorium. Much of the additional provisions made by the bank against Covid-
related losses have gone toward strengthening the credit card portfolio, Ahuja said. The bank’s
credit card portfolio stands at Rs 10,289 crore.

View: Result is line with the expectation.