IFCI (IFCI) Q4 96/97 earnings summary

Executive summary

• FY1996-97 total income rose to Rs.2,582.41 crore from Rs.1,950.63 crore; profit after tax increased to Rs.378.56 crore from Rs.354.90 crore.

• Disbursements reached Rs.5,157 crore, up 13% YoY, while sanctions totalled Rs.7,212 crore across 394 projects.

• Recommended equity dividend of 30% for FY1996-97, versus 25% in the prior year; the proposed dividend was tax-free.

Financial highlights

• Total income Rs.2,582.41 crore; profit before tax Rs.462.56 crore versus Rs.454.90 crore; profit after tax Rs.378.56 crore versus Rs.354.90 crore.

• Total assets rose 27.47% to Rs.17,492 crore at 31 March 1997; loans to assisted concerns stood at Rs.13,399.65 crore.

• Rupee resources raised totalled Rs.6,061.14 crore; Family Bonds raised Rs.1,237.06 crore against an Rs.800 crore offer, with 6.31 lakh investors.

• External commercial borrowings included syndicated loans of US$300 million, including US$100 million from Japan.

Outlook and guidance

• Credit off-take and industrial investment were expected to improve in 1997-98 following Bank Rate reductions and other monetary and credit policy measures.

• The 1997-98 budget’s tax reductions and support for industrial growth were expected to encourage new ventures and strengthen risk and venture capital activity at RCTC.

• A dedicated Rs.20 crore venture fund for small-scale industries, with SIDBI participation, was expected to become operational in 1997-98; SIDBI sanctioned Rs.5 crore toward it.