A company, which has been on a roll before and after the Budget, IDFC has maintained its performance for the first quarter ended 30th June 2009. It’s Net Interest Income (NII) increased by 33% to Rs.922 crore of which NIIM from infrastructure loans increased by 24% to Rs. 219 crore and NII from treasury operations decreased by 38% from Rs. 40 crore to Rs. 25 crore. The increase in non-interest income has been quite substantial, it rose 32% at Rs.217 crore, which is as much as the NII and this is what has boosted the overall performance.
The decision to diversify into asset management also helped. IDFC’s asset management business increased 4 times to Rs. 72 crore in Q1FY10. This jump was due to new funds raised private equity, in project equity and on account of the AUM acquired through the acquisition of the mutual fund.
Profit before tax (PBT) increased by 30% to Rs. 372 crore. After accounting for Rs. 97 crore for tax and share of profit in associate company, PAT was up 26% to Rs.272 crore.
Goss approvals and disbursements continue to remain down. Approvals decreased by 3% to Rs. 4,361 crore and gross disbursements decreased by 44% to Rs. 1,542 crore. Overall exposure decreased by 10% from Rs. 36,307 crore to Rs. 32,816 crore. Energy remained the top sector, YoY, its exposure increased from 36% to 39% and transport remains the second though its exposure has come down marginally from 22.2% to 21.5%. Its exposure to tourism and cement sectors has gone up. The biggest concern was IDFCs’ exposure to realty. Total disbursal outstanding to commercial and industrial infrastructure, YoY has come down from 15% to 12.2% of its total outstanding disbursements.
FY09 was a tough year for IDFC and it adopted a cautious approach, adopted a better to be safe than sorry attitude. Now that things have settled, the company is back to concentrating on growth. Given the emphasis to infra, IDFC is poised to do well.
Source: www.premiuminvestments.in (By S P Tulsian)
No comments:
Post a Comment