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IDFC recorded 14% fall in the net profit for the quarter ended June 2014, due to sharp increase in provisions for bad loans. The operating profit of the company declined 15%. The total income from operations fell 8% to Rs 2122.52 crore for the quarter ended June 2014, while interest expenses increased 2% to Rs 1302.06 crore. Other expenses moved up 3% to Rs 134.68 crore leading to 15% dip in the operating profits to Rs 752.41 crore in Q1FY2015.
Provisions and contingencies shot up to Rs 203.93 crore in Q1FY2015 from Rs 59.17 crore in Q1FY2014. Despite write-back of depreciation provisions worth Rs 79.67 crore, the PBT declined 24% to Rs 628.15 crore in the quarter ended June 2014. Tax rate dipped to 22.5% in Q1FY2015 from 31.9% in Q1FY2014, restricting the fall in PAT at 14% to Rs 481.74 crore for Q1FY2015.
Net Interest Income (NII) was flat yoy at Rs 682 crore in Q1FY2015. NII from loans declined 3% to Rs 614 crore, while the NII from treasury operations increased 28% to Rs 68 crore in the quarter ended June 2014. Average spreads were steady on sequential basis at 2.3% in Q1FY2015, while declined from 2.4% in Q1FY2014.
Non-interest Income declined 60% yoy to Rs 134 crore in Q1FY2015, as there was loss on principal investments at Rs 9 crore in Q1FY2015 from profit of Rs 63 crore in Q1FY2014. The asset management fees rose at moderate pace of 7% to Rs 98 crore in Q1FY2015. Further, the fixed income declined 85% to Rs 21 crore, while investment banking and broking fees surged 31% to Rs 17 crore in Q1FY2015.
Asset Quality
The asset quality witnessed deterioration in the quarter ended June 2014. GNPA increased 88% yoy to Rs 342.38 crore at end June 2014. NNPA moved up to Rs 228.87 crore at end June 2014 from Rs 112.46 crore at end June 2013.
GNPA ratio increased 08 bps qoq and 32 bps yoy to 0.64% at end June 2014. Meanwhile, the NNPA ratio increased 06 bps qoq and 23 bps yoy to 0.43% at end June 2014.
Restructured loans moved up to 5.3% of loan book at end June 2014 from 4.5% at end March 2014.
Capital Adequacy Ratio improved to 23.9% at end June 2014 compared 22.3% at end March 2014.
Annual Financial Year Performance
Total Income grew 8% yoy to Rs 8772.04 crore in the year ended March 2014. Interest expenses increased 8% to Rs 5055.24 crore and the other expenses rose 4% to Rs 512.84 crore in FY2014. Operating profits increased 8% to Rs 3221.91 crore in FY2014. Provisions and contingencies zoomed 80% to Rs 628.3 crore. PBT, as a result, declined 1% to Rs 2562.65 crore. Tax Provisions eased 2% yoy to Rs 738.46 crore in FY2014. Finally, the PAT declined 1% to Rs 1824.19 crore in FY2014 over FY2013.
Net Interest Income (NII) grew 5% to Rs 2704 crore. NII from loans increased 5% to Rs 2488 crore, while NII from treasury operations increased 9% to Rs 216 crore in the year ended March 2014.
Non-Interest Income rose 14% to Rs 1003 crore, as the income from principal investments advanced 57% to Rs 318 crore. Fees from IDFC's asset management business moved up 33% to Rs 390 crore in FY2014. Income from Investment banking and broking declined 1% to Rs 77 crore. Loan related fees and fixed income also fell 39% to Rs 115 crore and 14% to Rs 102 crore in FY2014 over FY2013.
Performance Highlights- Q1FY2015
- The balance sheet increased 6% from Rs 7155 crore to Rs 75655 crore at end June 2014.
- Gross Loan book declined 7% from Rs 57600 crore at end June 2013 to Rs 53848 crore at end June 2014.
- Gross Approvals dipped 68% from Rs 3115 crore in Q1FY2014 to Rs 988 crore in Q1FY2015.
- Gross Disbursements fell 23% from Rs 3206 crore in Q1FY2014 to Rs 2463 crore in Q1FY2015.
- Cumulative Outstanding Approvals was Rs 68468 crore at end June 2014.
Book value of the company stood at Rs 102.4 per share, while the adjusted book net of NNPA and 10% of restructured advances stood at Rs 99 per share at June 2014.
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