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#IDFCFIRSTB Q4 Results update:

• GNPA down 27 basis points year on year to 3.7 percent; total slippages at | 1400 crore

• NII increased by 36.2 percent year on year, NIMs increased by 37 basis points quarter on quarter to 6.27 percent, while C/I remained constant at 76 percent.

• Provisions are down 36% year on year, but PAT is up 128 percent year on year to $ 342.7 crore.

• Funded assets increased 12.7 percent year on year to | 1.3 lakh crore, while retail increased 28 percent year on year.

Key catalysts for future price performance:

o Pedaling growth with a retail focus and a granular liability base to support business development while maintaining excellent margins.

o Lower credit cost guidance of 1.5 percent, driven by stronger collections, bodes good for the profits trajectory and, thus, return ratios.

o Higher CI ratio is a deterrent, but with opex on the down, revenue is expected to rise gradually, leading to an increase in RoA. Uncertain merger timing and valuations are likely to keep the stock volatile.

Technicals:

• For short term, a trade can be taken if the stock crosses the 20 EMA

• A strong historical support exists at 32-33 levels and in the past few sessions, it has taken a rebound from there

Please share your views too!