May 8, 2023
New Delhi, India
IDFC’s Q4 Performance Highlights Sharp Decline in Net Profit
IDFC, the financial services conglomerate, reported a substantial decline in its net profit for the quarter ending March 2024. The net profit plummeted by 89.73%, amounting to ₹347.85 crore, compared to ₹3,387.39 crore recorded in the same quarter of the previous fiscal year.
Full-Year Net Profit Decline and Revenue Drop
For the fiscal year ending in March 2024, IDFC witnessed a significant decline of 75.36% in its net profit, totaling ₹1045.58 crore, compared to ₹4243.89 crore in the previous fiscal year. Additionally, sales experienced a notable decrease of 57.39%, dropping to ₹65.54 crore from ₹153.83 crore in the previous fiscal year.
IDFC First Bank’s Q4 Results
IDFC’s subsidiary, IDFC First Bank, also disclosed its financial results for the quarter ended March 31, 2024. The bank reported a 10% decrease in net profit for Q4FY24, amounting to ₹724 crore, compared to ₹803 crore recorded in the same quarter of the previous year. This decline is attributed to a significant increase in provisions.
Positive Indicators for IDFC First Bank
Despite the decline in Q4 profit, IDFC First Bank demonstrated positive growth in certain aspects. The bank reported an increase in interest income to ₹8,219 crore for the period spanning January to March 2024, compared to ₹6,424 crore in the corresponding quarter of the previous year. Moreover, the bank witnessed a 24% growth in its Net Interest Income (NII) to ₹4,469 crore in Q4 FY24, up from ₹3,597 crore in Q4 FY23.
Reduction in NPAs
IDFC First Bank also showcased improvement in asset quality, with a decline in gross non-performing assets (NPAs) to 1.88% of gross advances as of March 31, 2024, down from 2.51% at the end of March 2023. Additionally, the bank’s net NPAs reduced to 0.60% by the end of 2024, compared to 0.86% previously.
Conclusion
IDFC’s Q4 results reflect a challenging period marked by a significant decline in net profit and revenue. However, IDFC First Bank’s performance presents a mixed picture, with a decrease in Q4 profit offset by growth in interest income and improvements in asset quality. As both entities navigate through market dynamics and economic uncertainties, their ability to adapt and capitalize on emerging opportunities will be critical for future growth and stability.
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