Companies & Sectors
IDFC FY14 net profit flat at Rs1,803 crore on higher provisions

For FY14, IDFC recorded marginal fall in its net profit to Rs1,803 crore even as its provisions rose 80%

IDFC Ltd, an infrastructure finance, non-banking financial company (NBFC), reported almost flattish full year net profit despite an increase of 80% in its provisions.

For the 12 month to end-March, the infrastructure lender said its net profit declined 2% to Rs1,803 crore from Rs1,836 crore while its total revenues, including interest income, grew 8% to Rs8,772 crore from Rs8,139 crore, a year ago period.

IDFC's provisions jumped 80% to Rs628 crore in FY14 compared with Rs350 crore during FY13.

IDFC said, its net interest income (NII) during FY14 increased 5% to Rs2,704 crore from Rs2,564 crore in same period a year ago. Its net interest margin (NIM) stood at 4.0% in FY14.  

During FY14, IDFC's operating expenses increased 4% to Rs544 crore from Rs525 crore a year ago period. Its gross disbursement decreased by 8% to Rs16,296 crore from Rs17,695 crore a year ago.

As on 31 March 2014, IDFC's capital adequacy ratio stood at 22.32%. IDFC said, its gross non performing assets ratio (GNPAs) increased to 0.56% (Rs333 crore) compared with 0.15% (Rs85 crore) a year ago. Its net non-performing assets increased to 0.37% (Rs221 crore) from 0.05% (Rs29 crore) in a year ago period.

During the quarter to end-March IDFC's net profit plunges 51% to Rs258 crore from Rs526 crore while its total revenues, including interest income,  declined 2.50% to Rs2,032 crore from Rs2,084 crore a year ago period. As in its March quarter, it made three times more provisions of Rs483 crore from Rs165 crore a year ago in same period.
Earlier in March, the RBI has granted in-principle approval for new bank licence to IDFC

IDFC declared a dividend of Rs2.60 per share.

IDFC closed Friday 2.23% down at Rs114 on the BSE, while the 30-share Sensex ended the week flat at 22,688.

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TRAI to fix minimum download speed for mobile internet

The telecom regulator has been receiving a number of complaints from consumers regarding poor download speed for mobile internet being experienced by them

Soon, mobile and telephone users will have clarity and assurance on the minimum download speed they would get from their telecom operator, be it 2G or 3G services. The Telecom Regulatory Authority of India (TRAI) is gearing up to mandate mobile services companies to ensure details in this regard under quality of service rules.


Consumers are being wooed by telecom companies in advertisements regarding high speed wireless data services and product packs in which they are promised speeds of up to 7.2 megabit a second or 21 megabit a second. In general, even at 7.1 mbps speed, a mobile or dongle user should be able to download a full-length movie in around 12-14 minutes.


TRAI said it has been monitoring the ‘minimum download speed’ reported by the TSPs for each data plan since last three quarters. It has been seen that the minimum download speed is not uniform across all licensed service areas (LSAs). The minimum download speed varies amongst the telecom services providers (TSPs) even for the same technology and the variation is also quite large eg:- in 2G technology, the speed varies from 21.42 kbps to 97.06 kbps between the operators, the regulator said.


"Moreover," TRAI said, "the telecom consumers availing wireless data services are not aware of the minimum download speed being offered to them by the TSPs. Generally, the tariff plans offered by the TSPs are based on the volume of data usage for various technologies, without any clarity about the speed being offered to consumers. Also, there is no commitment of minimum download speed while offering a tariff plan."


In order to provide clarity to the consumers opting for data plans using a certain technology and based on the data on minimum download speed reported by the TSPs in the last three quarters, TRAI is seeking to prescribe a minimum download speed for wireless data services on technology basis, as below:


TRAI said, "Another alternative could be that the service providers, along with the tariff and the details of data services offered, also specify a minimum download speed that will be applicable for each plan or scheme. Accordingly, along with each tariff plan whenever they are advertised, through website, telephone bills, sale vouchers, complaint centres, and sales office, the minimum download speed is also necessarily mentioned. Moreover, whenever there is a change in the plan or speed, subscriber should be properly informed and the same should also be published through suitable advertisement. The service provider shall inform the minimum download speed along with the tariff plan while filing tariff to TRAI."


The consultation paper issued by TRAI on "Amendment to the Standards of Quality of Service for Wireless Data Services Regulations, 2012" also mandates TSPs to publish on their website, the details of all data services offered, along with their tariff, clearly indicating the cities and towns where such data services and tariff plans are applicable.


Telecom operators have reported to TRAI that the minimum download speed delivered on their most high speed 3G service is in the range of 399 kbps (less than minimum broadband speed of 512 kbps) to 2.48 mbps.


As per the regulation on “Quality of Service standards for Broadband Services” issued by TRAI on 6 May 2006, a subscriber should get minimum 80% of the subscribed broadband connection speed from the ISP node (service provider) to user. As per the directive, service providers were required to ensure that the speed of broadband connection is not reduced below the minimum specified limit and to provide alert to consumers, via SMS as well as email, when their data usage reaches 80% and 100% of the data usage limit bundled with the plan.


However, most of the times, mobile subscribers never get the data speed as promised by their service provider. Subscribers are not informed about the drop in data speed as well.


TRAI has asked all stakeholders to send their comments, preferably in electronic form, on the consultation paper by 5 May 2014 and counter comments by 12th May on e-mail ID



Ankur Bhatnagar

3 years ago

Today Airtel launched 4G services in Chandigarh. But really, what's the point of 4G if they will offer piddly speeds on it.

3G alone can support speeds of up to 21 MBPS but in reality, the operators don't even reach 10% of this. The actual download speed would be less than 0.5 MBPS, and that too when 3G is available.

I have an Airtel connection and I can see on my phone that more often than not I only get 2G connection. At that time, the internet almost doesn't work.

I also correlate this news with another where it was reported that Airtel's quarterly profit was up by 89%. There are other recent reports that Airtel is set to increase the tariffs. What is going on? Is there anybody out there who takes up users' interests?

The government is only interested in maximising its license fee (when it is not scamming).

Simple Indian

3 years ago

Also, the 3G connection of NO operator remains stable, but constantly switches to 2G and back, often dropping connection in the process, which is evident when using 3G data cards with laptops even in metros.

Indian Hotels plans to raise Rs1,000 crore via debentures

IHCL intends to utilise part of the proceeds from the issue towards capital expenditure proposed to be incurred by it for construction of a Vivanta by Taj in Guwahati and to repay some debt

Tata group hospitality unit Indian Hotels Company Ltd (IHCL) is planning to raise Rs1,000 crore through issue of debentures on rights basis and has sought permission from Securities & Exchange Board of India (SEBI).


According to the draft offer document filed by IHCL with SEBI, the company is planning to issue ‘compulsorily convertible debentures (CCDs)’ for an amount not exceeding Rs1,000 crore on a rights basis to the eligible equity shareholders of the company...”


IHCL intends to utilise part of the proceeds from the issue towards capital expenditure proposed to be incurred by the company for construction of a Vivanta by Taj in Guwahati.


Besides, the Tata group unit would use the funds for repayment or pre-payment of certain borrowings, funding of capital expenditure related to renovation proposed to be undertaken at some of its hotels as well as for general corporate purposes.


IHCL is engaged in the business of owning, operating and managing hotels and resorts. The company operates the Taj Mahal chain of hotels and resorts.


Some of its well-known hotels include Mumbai’s Taj Mahal Palace and Jodhpur-based Ummaid Bhawan Palace.


As of 31 December 2013, the company operated 125 hotels and resorts with 15,391 rooms and had a presence across various geographical segments including beach resorts, hill stations, wildlife sanctuaries, major cities and tourist destinations.


Indian Hotels Company closed Wednesday 1.2% down at Rs73.90 on the BSE, while the 30-share Sensex ended the day flat at 22,876.



Nitesh Sharma

3 years ago

That's good news about raising of Rs1,000 crore via debentures which helps them in better business development.

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