IDFC Yet Another Strong Infra Stock to Invest

After long wait today I made purchase on IDFC. This highly reputed infra company, despite the trying circumstances, has posted a good set of results for the year ended 31st march 2009. Its Net Interest Income (NII) increased by 33% to Rs.922 crore and of this, NII came from infrastructure loans, which increased by 34% to Rs. 758 crore and NII from treasury operations increased by 27% to Rs.164 crore.
After accounting for Rs. 278 crore for tax, profit in associate company and minority interest, net profit for FY09 was stagnant at Rs.750 crore as against Rs.742 crore in FY08.
The biggest concern was IDFCs’ exposure to realty. Total disbursal outstanding to commercial and industrial infrastructure, as on 31st March 2009 stood at less than Rs.3,000 crore, accounting for about 12.9% of its total outstanding disbursements.
Govt continues to hold 20.2% stake in the company as on 31/03/09. FII/FDI holding has come down to 39.5% (46.7%), Mutual funds holding is at 7.7% (8.5%), Corporate Bodies have increased stake to 4.3% (3.5%) and retail has increased the most at 13.3% (7.7%).
Net NPAs was at 0.21% of outstanding loans. Capital Adequacy Ratio was at 23.75% (Tier I – 20.04%; Tier II – 3.71%).
FY09 was a tough year for IDFC and it adopted a cautious approach, adopted a better to be safe than sorry attitude. Now that things have settled, the company is back to concentrating on growth. Given the emphasis to infra, IDFC is poised to do well. thanks.