IDFC Q1 net dips 46% to Rs 241 crore

Infrastructure finance company IDFC on Thursday reported a 46.36 percent decline in net profit at Rs 240.88 crore for June quarter of the current fiscal. The company had a standalone net profit of Rs 449.07 crore in the corresponding period a year ago. Total income increased marginally to Rs 2,087.08 crore for the quarter ended June 30, from Rs 2,039.17 crore for the quarter ended June 30, 2014, IDFC said in a BSE filing.

The consolidated net profit of the group also declined 47.23 percent to Rs 254.21 crore during the quarter. The group's net profit after taxes, minority interest and share of profit of associates was Rs 481.74 crore in the corresponding three month period last fiscal. Total income of the group rose to Rs 2,226.77 crore during the first quarter, from Rs 2,189.15 crore year ago.Reacting to the numbers, Suruchi Jain, Equity Research Analyst at Morningstar India said the brokerage house has a long-term view on the stock with a 3-5 year horizon and their fair value estimate was Rs 198. "We are valuing the stock at two times price to book starting next year 2016 and so that is what brings us to the Rs 198 kind of number," she added.Meanwhile, Mayuresh Joshi, VP- Institution, Angel Broking was a bit concerned about the outstanding restructured loans towards the power sector.