Fairfax India (FIHU) Q2 2024 earnings summary

Executive summary

• Net earnings rose to $254.1 million in Q2 2024 ($1.88 per diluted share), up from $159.3 million in Q2 2023 ($1.12 per diluted share), driven by higher net gains on investments.

• Book value per share increased to $21.52 at June 30, 2024, from $19.65 at March 31, 2024, reflecting a 9.5% rise, mainly due to IIFL Finance's share price recovery.

• Cash and marketable securities stood at $309.9 million at quarter-end, including $71.0 million receivable from CSB Bank share sale.

Financial highlights

• Net change in unrealized gains on investments was $183.8 million, mainly from listed holdings like IIFL Finance ($133.6M), IIFL Securities ($88.6M), CSB Bank ($28.6M), and Fairchem Organics ($14.1M).

• Net realized gains on investments totaled $101.4 million, primarily from sales of NSE ($50.2M) and CSB Bank ($43.0M), with a 32.8% compounded annualized return on NSE since inception.

• Total assets were $3.67 billion and total equity was $3.04 billion as of June 30, 2024.

• Net earnings for Q2 2024 were $254.1 million, up from $165.7 million in Q2 2023; net earnings per diluted share were $1.88 versus $1.12.

• Weighted average shares outstanding were 135.2 million in Q2 2024.

Outlook and guidance

• Forward-looking statements highlight expectations for continued capital appreciation and investment in Indian public and private equity and debt, while noting risks and uncertainties.