Infrastructure projects financing company IDFC is set to declare its results for the third quarter of financial year 2012-13 on Friday. Analysts on an average expect profit after tax to grow by 24 percent year-on-year to Rs 471 crore in the quarter, according to CNBC-TV18 poll.
Net interest income is seen going up by 27 percent to Rs 695 crore from Rs 546 crore during the same period.
According to analysts, the asset quality is expected to be broadly stable, though management was cautious in its statements in September quarter.
In second quarter, there was no fresh restructuring or non performing liabilities (NPLs) increase. Gross non performing asset (NPA) improved to 0.28 percent as against 0.3 percent and net NPA to 0.13 percent versus 0.14 percent QoQ.
After second quarter numbers, the management said the absolute NPLs + restructured pool were likely to increase but would be in manageable limits without creating a strain on numbers.
Analysts expect loan growth at around 25-30 percent in December quarter. In September quarter, loan book grew by 36 percent.
Net interest margin and spreads are expected to be maintained at similar levels of 4.4 percent and 2.6 percent, respectively reported in second quarter.
Investors should watch out for non interest income (fee income + principle investments). Fee income (from capital markets business and AMC) is expected to see a slight QoQ pick up in December quarter as it was subdued with a 6.6 percent growth to Rs 145 crore in September quarter. Income from principle investments is expected to be flat QoQ and lower YoY, hence that may be affecting non interest income as a whole.
In the July-September quarter, non interest income fell 51 percent to Rs 194 crore.
IDFC has exposure to Deccan Chronicle (total exposure was Rs 145 crore), of which Rs 60 crore was written off by the company in Q1 and recovered a bit in Q2. However, by end of FY13, they said they would provide fully for it.
In the second quarter, net interest income rose by 32 percent YoY to Rs 656 crore and profit after tax fell by 9 percent YoY to Rs 476 crore.
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