Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the financials sector. The brokerage house expects Power Finance Corporation to report a 3.8 percent degrowth quarter-on-quarter (growth of 20.4 percent year-on-year) in net profit at Rs 1,238.8 crore.
Net interest income is expected to increase by 2.7 percent Q-o-Q (up 27.1 percent Y-o-Y) to Rs 1,772.1 crore, according to Motilal Oswal. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 2.2 percent Q-o-Q (up 27 percent Y-o-Y) to Rs 1,745.5 crore. Motilal Oswal report on Power Finance Corporation We expect loan growth to remain healthy at 25 percent Y-o-Y. On a sequential basis, loans and borrowings are likely to grow by 5 percent each. NII should grow at a healthy 27.1 percent Y-o-Y on healthy loan growth. Margins are likely to moderate Q-o-Q. Due to sharp currency depreciation we expect MTM loss of INR 500 million as compared with a gain of INR 90 million in 4QFY13. We expect NIM to improve Y-o-Y and moderate sequentially at 4.3 percent compared to 4.47 percent in 4QFY13. Asset quality would be a key monitorable, given the issues related to fuel linkages. The stock trades at 0.7x FY14E and 0.6x FY15E BV.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
