IDFC slips 2% on weak Q3 results

The stock opened at Rs 171 and touched a low of Rs 164 on the NSE

Infrastructure finance company IDFC has slipped by over 2% at Rs 167 on the NSE after posting a 16% drop in consolidated third quarter net profit at Rs 422 crore on sharp rise in provisions and flat net interest income.

IDFC, which is soon to become a commercial bank, had posted a net profit of Rs 501 crore in October-December 2013 (Q3 of FY14). The net interest income for reporting quarter was flat at Rs 661 crore against Rs 664 crore in Q3 of FY14.

However, non-interest income (asset management fees, fixed income etc) rose by 70% to Rs 317 crore, up from Rs 187 crore. The provisions for stressed loans rose by 286% to Rs 182 crore from Rs 47 crore in Q3 of FY15. It, however, had the benefit of write-back of provisions for investments. Its write-back was Rs 29 crore as against Rs 11 crore in Q3 of last year.

The stock opened at Rs 171 and touched a low of Rs 164 on NSE. Till 1240 hours, a combined around 12 million shares changed hands on the counter on BSE and NSE.