IDFC will announce its first quarter results on Monday. Analysts on an average expect the profit after tax of the finance company to grow 14 percent year-on-year to Rs 432 crore, according to CNBC-TV18 poll.
Net interest income is seen going up just 6 percent to Rs 665 crore in April-June quarter from Rs 629 crore reported in a year ago period as incremental disbursements will be led by refinancing business.
Investors should watch out for the bank's commentary on (1) cost of funding since it is entirely wholesale funded (post RBI’s liquidity tightening measures and (2) Banking License.
Analysts feel the margin is expected to maintain Q-o-Q, which was dipped to 4.1 percent in Q4FY13 as against 4.2 percent in previous quarter. They expect spreads within a guided range of 2.25 percent to 2.45 percent.
Analysts expect limited non-performing asset (NPA) accretion in June quarter, hence asset quality may be stable and provisions are expected to be lower Q-o-Q. In previous quarter, gross NPA was stable at 0.15 percent and net NPA at 0.05 percent.
Loan book is expected to see a 10-15 percent growth Y-o-Y (16 percent growth in Q4FY13 Y-o-Y) on the back of higher refinancing demand and improvement in green-field projects.
Investors should watch out for non interest income (principal investment, AMC and fee income). In previous quarter, non interest income grew 169 percent Y-o-Y to Rs 364 crore.
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