IDFC Q1: Analysts expect PAT to grow 24% at Rs 389 cr

Infrastructure loan financing company IDFC is set to announce its results for the quarter ended June 2012 today. Analysts on an average expect the profit after tax to grow by 24% year-on-year to Rs 389 crore.

Net interest income is likely to go up by 25% to Rs 606 crore from Rs 483 crore during the same period. 

Analysts expect the bank to make provisions in the range of Rs 55-70 crore in the first quarter as against Rs 40 crore in a year ago period and Rs 84 crore in the previous quarter.

Analysts expect stable asset quality during the quarter. In the previous quarter, the company had reported improved metrics on asset quality and said (in the guidance) that gross non-performing assets (NPA) would be below 1%. IDFC expect spreads in the range of 2.25% as against 2.45% with 20% growth in the next two years.

Gross NPAs declined to 0.30% in the fourth quarter of FY13 as against 0.33% in the previous quarter and net NPAs slipped to 0.15% versus 0.22% during the same period. Analysts expect no fresh slippage in the June quarter.

Analysts expect loan growth to remain strong, which is expected to be 3% QoQ and 30% YoY.

Revenues from banking and asset management are likely to remain stable QoQ.

Investors should watch out for pressure from capital markets business such as institutional broking. Institutional broking's revenues fell 22% to Rs 41 crore in FY12, which is expected to see a sharp dip in the first quarter of FY13.