PTC India Financial Services sinks 10% as provisions drag Q2 profit 68%; NIM contracts
Non-banking finance company PTC India Financial Services shares lost 10 percent intraday Tuesday on disappointing September quarter earnings. Profit fell sharply by 68 percent year-on-year to Rs 21.7 crore on higher provisions. Asset quality also weakened further.
Net interest income, the difference between interest earned and interest expended, increased 11.3 percent to Rs 110.7 crore in Q2 YoY but sequentially fell 10 percent.
Loan book for the quarter registered a 21.3 percent growth YoY at Rs 12,122 crore but posted a 3.4 percent decline on sequential basis.
Net interest margin compressed to 4.15 percent in Q2, from 4.77 percent in previous quarter due to sharp fall in yields. Yields declined sharply at 10.26 percent against 10.98 percent QoQ.
Net interest margin in year-ago quarter stood at 4.62 percent.
Gross non-performing assets as a percentage of gross advances for the quarter were higher at 5.92 percent (from 5.83 percent in previous quarter) and net NPAs at 4.28 percent (4.11 percent).
Provisions for bad loans nearly doubled to Rs 64.3 crore from Rs 33.6 crore on year-on-year basis and rose more than eight-fold compared with Rs 7.7 crore in previous quarter.
At 15:03 hours IST, the stock price was quoting at Rs 37.10, down Rs 2.90, or 7.25 percent on the BSE.