Fairfax India (FIHU) Q4 2024 earnings summary

Executive summary

• Reported net loss of $41.2 million for 2024, reversing from net earnings of $371.8 million in 2023, mainly due to unrealized foreign currency translation losses as the U.S. dollar strengthened against the Indian rupee.

• Book value per share decreased 4.1% to $20.96 at year-end 2024 from $21.85 at year-end 2023.

Financial highlights

• Net realized gains on investments totaled $218.9 million, primarily from sales of NSE ($167.3 million) and partial sales of CSB Bank ($43.0 million).

• Net change in unrealized gains on investments was $55.1 million, with increases in IIFL Capital, BIAL, Maxop, and Jaynix, offset by declines in IIFL Finance, CSB Bank, and Sanmar.

• Interest and dividend income reached $61.5 million, mainly from Seven Islands ($29.9 million), Saurashtra ($4.4 million), and Government of India bonds ($16.3 million).

• Net loss per diluted share was $0.30 for 2024, compared to net earnings per diluted share of $2.72 in 2023.

• Comprehensive loss for 2024 was $118.3 million, including $85.5 million in unrealized foreign currency translation losses.

Outlook and guidance

• Entered agreement to acquire an additional 10% equity interest in BIAL for $255.0 million, with closing expected in Q1 2025 after shareholder approval for a one-time investment concentration deviation.