Soon-to-be a bank IDFC Ltd reported a 51 per cent decrease in fourth quarter consolidated net profit as the income remained largely flat and expenses almost doubled.
In the January to March period, the infrastructure finance company posted a net profit of Rs 258 crore against Rs 526 crore, a year ago.
Total income, mainly from financing infrastructure projects, remained largely unchanged at Rs 2,205 crore (Rs 2,218 crore, a year ago).
Total expenses during the quarter almost doubled to Rs 619 crore led by higher provisions and contingencies.
IDFC Ltd will convert into a bank over the period of next 18 months. IDFC and microfinance company, Bandhan Financial Services, bagged the licence early this month from the Reserve Bank of India to become a bank.
Rajiv Lall, Executive Chairman, IDFC, said earlier this month that he expects profitability at the company to be affected over the next three years. The company said that it will restrain from financing new infrastructure projects and remain cautious in financing existing projects.
For the full year, IDFC reported a net profit of Rs 1,803 crore against Rs 1,836 crore, a year ago.
The company reported its results after close of market hours on Friday. Shares of the company closed at Rs 114.10, down 2.23 per cent on the BSE.