|
IDFC recorded strong 48% surge, highest in last eight quarters, in the net profit for the quarter ended March 2015 (Q4FY2015). The healthy revenue growth, high base for provisions, and lower tax rate boosted the profitability of the company in Q4FY2015. Meanwhile, the company has also exhibited healthy improvement in asset quality in Q4FY2015.
The company has continued to step up provision for bad loans with provisions as percentage of gross loan book rising to 4.2% at end March 2015 from 3.7% a quarter ago and 2.1% a year ago. The operating expenses nearly doubled in Q4FY2015 over Q4FY2014, as the company continues to spend on banking venture.
The total income from operations increased 16% to Rs 2583.78 crore for the quarter ended March 2015, while interest expenses increased 19% to Rs 1485.22 crore. Other expenses moved up 96% to Rs 252.38 crore. The operating profits rose 1% to Rs 846.18 crore in Q4FY2015.
Provisions and contingencies dipped 22% to Rs 375.1 crore in Q4FY2015 from Rs 482.54 crore in Q4FY2014. The company has been improving floating provision buffer. Depreciation provisions declined 18% to Rs 6.19 crore. The PBT jumped 32% to Rs 464.89 crore in the quarter ended March 2015. Tax rate plunged to 15% in Q4FY2015 from 24.1% in Q4FY2014. PAT zoomed 48% to Rs 382.21 crore for Q4FY2015.
Net Interest Income (NII) declined 4% to Rs 642 crore in Q4FY2015 over Q4FY2014. NII from loans declined 9% to Rs 551 crore, while the NII from treasury operations surged 43% to Rs 90 crore in the quarter ended March 2015.
Average spreads eased to 1.8% in twelve months ended March 2015 compared to 2.3% in the twelve months ended March 2014.
Non-interest Income surged 48% yoy to Rs 423 crore in Q4FY2015, as gains on principal investments shot up to Rs 222 crore in Q4FY2015 from Rs 58 crore from Q4FY2014. Fixed income more than double to Rs 25 crore in Q4FY2015, while the asset management fees rose 3% to Rs 120 crore in Q4FY2015. Investment banking and broking fees dipped 30% to Rs 26 crore in Q4FY2015.
Asset Quality
The asset quality improved sharply in the quarter ended March 2015. GNPA ratio declined 03 bps qoq to 0.65% at end March 2015. Meanwhile, the NNPA ratio more than halved qoq to 0.22% at end March 2015.
Restructured loans increased sharply to 7.8% of loan book at end March 2015 from 6.1% at end December 2014 and 4.5% at end March 2014.
Capital Adequacy Ratio stood at 24.3% at end March 2015.
Book value of the company stood at Rs 108.5 per share, while the adjusted book net of NNPA and 10% of restructured advances stood at Rs 105 per share at March 2015.
Annual Financial Performance
Total Income grew 11% yoy to Rs 9722.47 crore in the year ended March 2015 (FY2015). Interest expenses increased 12% to Rs 5657.75 crore and the other expenses increased 49% to Rs 766.5 crore in FY2015. Operating profits increased 2% to Rs 3298.22 crore in FY2015. Provisions and contingencies surged 61% to Rs 1013.38 crore. PBT, as a result, declined 8% to Rs 2346.14 crore. Tax Provisions eased 19% yoy to Rs 596.27 crore in FY2015. Finally, the PAT declined 5% to Rs 1706.95 crore in FY2015 over FY2014.
Net Interest Income (NII) declined 3% to Rs 2633 crore. NII from loans declined 8% to Rs 2291 crore, while NII from treasury operations increased 59% to Rs 343 crore in FY2015.
Non-Interest Income rose 32% to Rs 1323 crore, as the income from principal investments advanced 75% to Rs 557 crore. Fees from IDFC's asset management business moved up 13% to Rs 440 crore in FY2015. Income from Investment banking and broking rose 4% to Rs 80 crore. Fixed income jumped 75% to Rs 179 crore, but loan related fees fell 41% to Rs 68 crore in FY2015 over FY2014.
Performance Highlights- FY2015
- The balance sheet increased by 16% from Rs 75,163 crore to Rs 87,068 crore as on 31 March 2015.
- Gross Loan book decreased by 8% from Rs 59,829 crore as on 31 March 2014 to Rs 54,745 crore as on 31 March 2015.
- Gross Approvals decreased by 7% from Rs 25,683 crore in FY14 to Rs 23,930 crore in FY15.
- Gross Disbursements decreased by 15% from Rs 16,296 crore in FY14 to Rs 13,830 crore in FY15.
- Cumulative Outstanding Approvals was Rs 75,573 crore as on 31 March 2015.
- Net Restructured Loans as on 31 March 2015 - 7.8% of loans.
- Average spreads for FY15 - 1.8% (FY14 - 2.3%).
- NIMs for FY15 - 3.4% (FY14 - 4.0%).
- Capital Adequacy at 24.3% as on 31 March 2015 (of which Tier I at 23.0%).
- Gross NPLs at 0.7% and Net NPLs at 0.2% of outstanding loans.
- Average Assets under management - Rs 62196 crore.
|