IFCI (IFCI) Q4 95/96 earnings summary

Executive summary

• FY1995-96 delivered record net profit of Rs 354.90 crore, up 29.56% YoY, alongside strong growth in sanctions and disbursements.

• Recommended equity dividend of 25% for FY1995-96, compared with 22% in FY1994-95.

Financial highlights

• Total income rose 32.36% YoY to Rs 1,950.63 crore; pre-tax profit increased 36.23% to Rs 454.90 crore.

• Profit after tax was Rs 354.90 crore versus Rs 274.02 crore; EPS rose to Rs 10.07 from Rs 7.79.

• Income from fund-based operations increased 37.02%; borrowing costs rose 33.13%.

• Actual total income, PAT and EPS exceeded public-issue prospectus projections of Rs 1,749.48 crore, Rs 264.39 crore and Rs 7.48, respectively.

Outlook and guidance

• Strategy review by Arthur Andersen & Associates was completed; recommendations on business strategy, processes, IT and organisation were under consideration to support sustained growth.

• Preference shares were identified as a potential funding source to expand capital adequacy and resources without diluting EPS or net worth per share; shareholder approval was sought for an issue up to Rs 100 crore.