IDFC reports 46% increase in net profit

By TEAM VCC

  • 29 Jul 2013

IDFC Ltd has reported 46 per cent rise in net profit after tax to Rs 557 crore for the quarter ended June 30, 2013, compared to Rs 379 crore in the same quarter last year, driven by improved operating income, non-interest income and lower provisions. The firm, which counts Malaysia’s sovereign wealth fund Khazanah Nasional Bhd and private equity firm Actis as its shareholders, saw an uptick in investment banking and broking business as well.

Total income has increased from Rs 1,842 crore for the quarter ended June 30, 2012, to Rs 2,298 crore for the quarter ended June 30, 2013.

The company saw its operating income increase 32 per cent to Rs 1,021 crore in Q1 FY14 while its net interest income (NII) increased 11 per cent to Rs 686 crore in the reporting quarter.

However, the NII from treasury operations decreased 15 per cent to Rs 55 crore in Q1 FY14. Net interest margins (NIMs) remained stable at 4.1 per cent for the rolling 12-month period ending June 2013.

In terms of outstanding disbursements, energy continues to be the largest portfolio contributor, followed by transportation and telecom.

The company saw its non-interest income shoot up 127 per cent to Rs 331 crore in Q1 FY14. The asset management income also increased 46 per cent to Rs 93 crore in Q1 FY14. Its income from investment banking and institutional broking increased 39 per cent to Rs 13 crore in the reporting quarter.

The assets under management under the IDFC private equity stood at Rs 4,457 crore, with Fund III contributing Rs 2,903 crore.

The shareholders in IDFC include Sipadan Investments (Mauritius), LIC, JPMorgan, Royal Bank of Scotland, Abu Dhabi Investment Authority, Vanguard, Actis Hawk Ltd, JPMorgan SICAV Investment Company (Mauritius) Ltd and HSBC Global Investment Funds.

(Edited by Sanghamitra Mandal)