IDBI Bank Ltd profit estimates 2010-11 vs actuals

As per Sec 211 of Income tax act Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by On or before the 15th September--- Not less than forty-five per cent. of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.
Durint the year the tax paid and profit for half year ended 30.09.10 were as follows
For Period H1 Sep Sep Q2 Sep Q1
------ended --2010 ---2010---- 2010
Profit BTax.... 974 ....645.... 329
Tax Paid .......263 .....184 ..... 79
Net PAT .......711...... 461.... 250
EPS ............7.25.......4.70... 2.55
During the Quarter the outstanding shares has increased to 98 crores from 72.9 crores due to infusion of capital by Government of India.
The First quarterly result were taken as published and the IDBI bank is likely to post PAT of Rs 711 crore for the half year ended 30.09.2010 after considering the tax @30% pa which represents 67.3 pc over last half year ended 30.09.2009
The Advance tax figure of 263 cr paid up to 15 Sep 2010 were considered from return by Income tax department
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Actual performance reported as on 30 sep 2010
For Period H1 Sep Sep Q2 Sep Q1
----ended --2010 ---2010---- 2010
...............Rupees in crore.............
Turnover....  9824....5069 ...4755
Profit BTax..1857....1026......831
Provisions.....944.......442......502
Tax Paid .......234 .....155 .......79
Net PAT .......679...... 429.... 250
NPM in pc ....6.91..... 8.46... 5.26
EPS ..............6.93.....4.38... 2.55
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The growth in half year ended 30.09.2010 over half year ended 30.09.2009 in turnover is 15.5 percent and net PAT is 59.4 percent
The growth in trailing 12 Mths 30.09.2010 over full year ended 31.03.2010 turnover is 7.5 percent and net PAT and 24.63 percent

Total assets at Rs 236000 crore as on 30.09.2010
Provision at 74 percent of doubtful debts based on RBI norms and 44 percent on traditional basis.
Net Interest Margin above 2 percent during the quarter 30.09.2010 and shall continue so


NOW THE ADVANCE TAX ESTIMATE FOR 2010-11
(figures extrapolated using the advance tax paid and previous three years tax rate)
Advance tax paid Rs 263 crore is 45% advance tax / 40.5 % of estimated final tax.
The estimated final tax is Rs 600 crore for 2010-11.
Assuming a net tax rate of 28.5% on Book Profit and the trend in growth of income in case of IDBI Bank
the Estimated Profit before tax and Net Profit after Tax would be Rs 2275 crore and Rs 1675 crore respectively for 2010-11 over a Turnover of Rs 20730 crore
as against Profit before tax Rs 1044 crore and Net Profit after Tax Rs 1031 crore for 2009-10 over a Turnover of Rs 17563 crore
The EPS is expected to be 17.1 and at current market price of Rs 180 the share trades at a PE of 10.53 x as against 15 x for the industry

updated on 30.10.2010