IDFC slumps on poor Q4

IDFC  was amongst the top losers in the morning trades. Though it is currently not amongst the top five losers, it remains down in the red at Rs.111.45, down almost 2.5%, with an intra day low at Rs.110.35.

The stock is reacting to the not-so-encouraging Q4FY14 numbers. The most disturbing part of the numbers was the 193% (QoQ) and 1221% (YoY) jump in provisioning – it has gone up to Rs.483 crore in Q4FY14. Growth in NII, sequentially was flat, showing a rise of just 1% at Rs.668 crore of this loans showed a degrowth of 1% while treasuries is what boosted the income, up 16%. Its pre-provisioning profit showed a rise of 15% (QoQ) but after the provisioning,  net profit for the quarter slumped 48% at Rs.258 crore and YoY, it was down sharper at 51%. The institution had a 50% (QoQ) lower tax provisioning and that thankfully kept a leash on the falling profit. It’s restructured loans' share as on March 31, 2014 was 4.5% of gross loans. The Gross NPL was at 0.6% and Net NPL was at 0.4% of outstanding loans.