IDFC net profit drops in Q3FY16 after demerger of IDFC Bank

IDFC declared its quarterly results on January 30. The company’s revenue declined by 12.14 per cent quoting Rs 2161 crore in Q3FY16 as compared to the same period in previous financial year. Its total expenditure decreased by 15.61 per cent to Rs 289 crore in Q3FY16 on a yearly basis.

IDFC’s EBITDA decreased by 11.58 per cent to Rs 1873 crore in Q3FY16 as compared to same period in previous fiscal year. The company’s interest expense reduced by 5.44 per cent to Rs 1403 crore in Q3FY16 on a yearly basis. Its net profit decreased by 58.21 per cent to Rs 176 crore in Q3FY16 on a yearly basis.

On segmental revenue front, IDFC earned 93.77 per cent from financing segment and remaining 6.23 per cent from others segment during December 2015 quarter.

On nine month financials, IDFC’s total income from operations declined by 2.39 per cent to Rs 6900 crore in 9MFY16 as compared to same period in previous fiscal year. The EBITDA of the company too decreased by 2.66 per cent to Rs 5759 crore in 9MFY16 on a yearly basis. It witnessed exceptional loss of Rs 2639 crore in 9MFY16 as IDFC demerged its banking business into IDFC Bank. IDFC  reported a net loss of Rs 1065 crore in 9MFY16 against Rs 1325 crore in 9MFY15.

The share price of IDFC declined by 3.7 per cent on bourses; and closed at Rs 40.35 on an intraday basis.

IDFC is an infrastructure finance company. The company's segments include Financing and Others. Its Financing segment is engaged in the financing of infrastructure projects in sectors, such as energy; telecommunication; transportation; commercial and industrial projects, including hospitals; education; tourism; and hotels. IDFC’s others segment includes asset management; investment banking; and institutional broking.