The second quarter of FY 24 -25 has brought notable developments for SBI Card, a leading player in the Indian credit card market. This article breaks down the company’s latest quarterly financial report, covering crucial metrics such as revenue growth, expenses, and profit margins. We will provide an in-depth look at how these figures compare both year-over-year and quarter-over-quarter, shedding light on trends in SBI Card’s financial performance.
Quarterly Revenue Growth and Analysis
SBI Card has reported a revenue increase for the Q2 period, showing an upward trend compared to previous periods:
- Quarterly Revenue Increase: In the second quarter of 2025, SBI Card achieved a revenue of approximately ₹4,421 crore. This represents a significant growth from the previous quarter’s ₹4,358 crore and the ₹4,087 crore reported for the same quarter last year.
- Year-over-Year Growth: Comparing to Q2 2024, there’s a noticeable increase of about 9% in revenue, demonstrating sustained annual growth.
- Quarter-over-Quarter Increase: On a quarterly basis, revenue rose approximately 2%, indicating continuous incremental progress.
SBI Card’s revenue has consistently expanded both annually and quarterly, signaling strong demand and effective strategies within the company’s core operations.
Detailed Expense Breakdown
While revenue has grown, expenses have also seen an upward trend, which is impacting the company’s overall profitability:
- Quarterly Expense Comparison: SBI Card recorded expenses totaling ₹4,083 crore this quarter, a rise from ₹3,683 crore in Q1 and significantly higher than the ₹3,411 crore in Q2 2024.
- Expense Growth Rate: Expenses have increased by approximately 18% year-over-year, which is considerably higher than the revenue growth rate.
This increase in expenses has influenced SBI Card’s net income, leading to reduced profitability. A substantial portion of these additional costs can be attributed to increased operational and marketing expenses aimed at driving future growth.
Profit Margins and Performance
The profitability of SBI Card for Q2 2025 has seen a decline, as rising expenses have significantly impacted the company’s net profit:
- Quarterly Profit: The net profit for Q2 2025 stands at ₹404 crore, which is a sharp decrease from the ₹594 crore reported in the previous quarter and ₹602 crore in the same quarter of 2024.
- Annual Profit Decline: This reflects a year-over-year decline of approximately 33% to 34% in profit, illustrating the impact of rising costs and increased competition on earnings.
- Quarter-over-Quarter Comparison: On a quarterly basis, the profit has dropped by about 30%, which is a notable reduction that diverges from market expectations.
Despite initial forecasts projecting a profit close to ₹587 crore, SBI Card’s actual profit came in significantly lower, a gap largely attributed to increased spending and competitive pressures.
Earnings Per Share (EPS) Insights
The Earnings Per Share (EPS) metric also highlights the effect of the company’s elevated expenses on shareholder returns:
- EPS Decline: The EPS for SBI Card in Q2 2025 is approximately ₹4.42, a reduction from the ₹6.37 per share reported in Q2 2024. This downward trend in EPS signals a decrease in per-share profitability, which could affect investor sentiment.
A year-over-year comparison shows that the EPS has decreased by over 30%, reflecting the overall decline in net profit due to high operational costs.
Market Sentiment and Outlook
While the revenue numbers indicate robust growth, the decline in profitability suggests that the company must address its rising expenses to maintain investor confidence. The market had anticipated a minor decrease in profit, but the substantial decline has surprised analysts and stakeholders, potentially leading to short-term fluctuations in SBI Card’s stock price.
Conclusion
In summary, SBI Card has displayed strong revenue growth in Q2 2025, continuing its upward trajectory both year-over-year and quarter-over-quarter. However, the substantial increase in expenses has led to a considerable dip in profit margins. As a result, the net profit and EPS have fallen short of market expectations. Going forward, SBI Card may focus on optimizing its operational expenses to enhance profitability while maintaining revenue growth.
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