IDFC is expected to report a solid 61 percent jump in fourth quarter profit at Rs 414.7 crore due to low base in the year-ago period, according to a CNBC-TV18 poll. Numbers will be announced today.
Net interest income of the infrastructure finance company is seen falling 0.6 percent to Rs 664 crore for the quarter ended March 2015 compared to Rs 668 crore in the same quarter last year.
In Q4FY14, profit was down 51 percent Y-o-Y to Rs 258 crore because of higher provisions that spiked up 193 percent year-on-year to Rs 482.5 crore.
Analysts expect provision for Q4FY15 around Rs 200 crore while profit may be supported by non-interest income (led by capital markets business).
In Q3FY15, non-interest income was up 70 percent Y-o-Y led by asset management fees (up 31 percent Y-o-Y) and fixed income.
Non-interest income comprises of principal gains, asset management, investment banking, fixed income and loan related fees.
Other factors to watch-Asset quality largely maintained in Q3. In Q4FY15, gross non performing asssets may be below 1 percent -Restructured book is expected to rise in Q4-Company may continue consolidation ahead of beginning banking operations in October 2015-Hence, analysts expect NII to be flattish in Q4, similar to earlier quarters of FY15-Q3 NII was down 0.5 percent, Q2 NII was down 6 percent and Q1 NII was flat Y-o-Y-Loan book is expected to consolidate. Hence one can see Y-o-Y decline with a marginal Q-o-Q pick up.-Net loan book in Q3 was down 2.9 percent Y-o-Y to Rs 52,007 crore-Q3 disbursements were down 2 percent Y-o-Y-Spreads & NIMS may be maintained at 2 percent and 3.7-3.8 percent, respectively
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