IDFC First Bank Q1 Results Review - Resilient Franchise Amid Yearly Return Shortfalls: Centrum

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.IDFC First Bank Ltd. reported Q1 FY25 numbers with lower opex and higher provisions. Net interest income for the quarter came in line at Rs 47 billion (up +25%/+5% YoY/QoQ) in line with our expectations. Other income witnessed an increase of +15%/down 4% YoY/QoQ. However, opex came in at Rs 44.5 billion (up +30%/5.4% YoY/QoQ) below our expectations. CTI for the quarter came in at 70.5% (down 213 bps sequentially), respectively. Resultantly, pre-provision operating profit came in at Rs 18.5 billion, up +25%/up +10.5% YoY/QoQ growth and +12% above our estimates. However, credit cost for the quarter was much higher at Rs 9.9 billion versus Rs 7.2 billion in Q4 FY24 (2.2% Q1 FY25 versus 1.7% in Q4 FY24 of average advances). Hence, profit after tax came in at Rs 6.4 billion (down 12% YoY /QoQ) versus our expectations of Rs 6.5 billion. Gross non-performing asset increase sequentially and came in at 1.90% which is higher by 12 bps QoQ, net non-performing asset at 0.60% which also flattish sequentially. CRAR came in at 15.59%. IDFC First Bank has been consistently missing its guidance on achieving improvement in return profile and we see FY25 as no different hence we cut our target multiple to 1.7 times on FY26 adjusted book value and arrive at a revised target price of Rs 93 (Rs 106). Maintain Buy..Click on the attachment to read the full report:.ICICI Bank Q1 Results Review: Credit Costs May Inch Up But Growth Trajectory To Continue.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IDFC First Bank Q1 Results Review - Resilient Franchise Amid Yearly Return Shortfalls: Centrum

The bank has been consistently missing its guidance on achieving improvement in return profile and the brokerage sees FY25 as no different.

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IDFC First Bank Q1 Results Review - Resilient Franchise Amid Yearly Return Shortfalls: Centrum

The bank has been consistently missing its guidance on achieving improvement in return profile and the brokerage sees FY25 as no different.

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