IDFC Q2 PAT may rise 5% at Rs 500cr: KR Choksey

KR Choksey has come out with its second quarter (July-September) earnings estimates for the NBFC sector. The brokerage house expects IDFC to report a 10 percent degrowth quarter-on-quarter (up 5 percent Y-o-Y) in net profit at Rs 500 crore.

Net interest income of IDFC are expected to decrease by 1 percent Q-o-Q (up 4 percent Y-o-Y) to Rs 680 crore, according to KR Choksey.

KR Choksey's Report on IDFC:

Operating income to grow 10.5% Y-o-Y led by higher non interest income and steady NII. Non interest income will decline 23 percent Q-o-Q due to lower trading gains partly offset by improvement in capital market linked businesss (AMC, IB & broking).

Capital market linked businesses such as securities broking, IB and asset management will see upturn in business volumes on the back of surge in equity market and slew of policy reforms. Considering the persist of fuel risk in private power producer segment, we expect asset quality remains under stress. Growth in loan book continues to be driven by refinance opportunities in infra space.

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