The company is on a sound footing. Its performance for 9MFY10 indicates that the slowdown which it has witnessed in FY09 is now left far behind. Net Interest Income (NII) increased by 20% on YoY of which NII from infrastructure loans increased by 30% while NII from treasury operations decreased by 36%. Non interest income saw a huge 50% jumo and this was mainly on the back of its asset management business which saw an increase of 1.67 times over last fiscal.
PBT rose 30% and PAT was up 32% at Rs.834 crore. Its balance sheet size grew by 4% to Rs.31,207 crore as at December 31, 2009. Net Loan book increased by 12% and its total exposure at the end of 9M was at Rs.34,757 crore. Net NPAs was placed at 0.19% of outstanding loans and interestingly, no new NPA was seen during 9M FY 2010. Net worth stood at Rs.7,010 crore.
It major exposure is to energy sector at 40%, followed by transportation, telecom, industrial and tourism, strictly in that order. Analysis of its borrowing pattern shows that 10% is from forex loans while the lions chunk, 56% is through bonds and debentures.
As at 31st Dec 2009, Govt of India held 20.2%, FIIs/FDIs held 44.9%, FIs and insurance companies held 16.3%, Mutual funds held 5.8%, Bodies Corporate held 3.8% and only 9.5% is with the retail investor.
IDFC is a very good long term wealth creator. At every dip, accumulate this stock.
Source: Internet (premiuminvestments.in by S P Tulsian)