IFCI tanks on poor Q1

IFCI has hit a new 52-week low today at Rs.20.30 and though it has recovered a bit from this level, it remains in the red.

The stock has tanked after it posted a set of very disappointing numbers for Q1FY14. Thanks to higher provisioning and bad debts, the institution posted a 42% (YoY) drop in its net profit at Rs.55 crore but QoQ, the fall was sharper, down 63%. Write off or provisions for bad assets rose from Rs.18 crore to Rs.53 crore (YoY). In Q4, it was at Rs.52 crore yet sequentially the net profit slipped more. This sharper QoQ fall can be attributed to the 22% drop in total income earned and 58% drop in other income.