Operating Profit has significantly reduced… down from 89163 to 34225
That is a big fall. (and this is highlighted nowhere in the presentation)
The reason is clear…
a. Lower Income (431624 vs 396912)
b. Increased Operational Exp (121912 Vs 148591)
Employees cost and Other operating expense both have increase this quarter. This is due to the scorching pace at which branches have been increased. This is a risk.
(This too is not even mentioned in the presentation)
I understand, a presentation is meant to highlight (gaslight) the good aspects.
Yet, the management managed to post a profit similar to last Q’s because of the switcheroo it did in the provisioning. But, that isnt convincing.
I am just talking frankly, to make this research thread on IDFCFIRST even more resourceful.
In the Qs to come we need to see these two parameters (‘a’ and ‘b’) improving.
Ever since the results, the stock price of the bank has been underperforming the general market. It wasn’t so before.
Amit