IDFC results fail to impress: Record a Net Loss

Infrastructure Development Finance Corporation results have failed to impress. On a (QoQ) basis the Net Income from Operations stands at Rs 2136.01 crore. As compared to the last quarter the Net income has shrunk by 1 per cent. EBITDA margin also has disappointed, where EBITDA margin on a (QoQ) basis has decreased by 5 per cent and stands at Rs 1783.6 crore as compared to Rs 1872.82 crore for the previous quarter. Net Profit has also decreased by 26 per cent and stands at Rs 130.45 crore.

On a (YoY) basis the total net income from operations stands at Rs 9035.73 crore. Net income from operation has decreased by 6 per cent and stands at Rs 9035.73 crore. While EBITDA has increased by 12 per cent and stands at Rs 6.05 crore as compared to Rs 5.41 crore for the previous year. IDFC has recorded a Net Loss of around Rs 934.8 crore. Other income has also been down by almost 66 per cent and stands at Rs 28.08 crore as compared to Rs 82.5 crore for the previous year.

Technically, EBITDA on a (YoY) basis has increased, but majorly the interest expenses and other income has reduced to a significant extent. Also the infrastructure sector has recorded a sluggish demand which is also one of the reasons for such an insignificant earning reported. Constant Restructuring may also be another reason for such devastating results. The results have left their impact on the share prices. The shares on the bourses are trading at Rs 43.30, which is down by 2.91 per cent.

The Infrastructure Development Finance Company Limited (IDFC) is an Indian integrated infrastructure finance company providing end to end infrastructure financing and project implementation services. The company businesses include corporate investment banking, alternative asset management and public market asset management.